The Scottish Government has officially opened applications for Checkpoint 11 of the Social Housing Net Zero Heat Fund (SHNZHF). A total funding pot of £200 million has been set aside to support social landlords in transforming existing properties into warm, energy efficient homes for Scottish residents.
Funding has been split across two themes, creating opportunities enabling the installation of clean heating systems for social housing alongside supporting a multi-measure fabric-first approach.
1. Know your eligibility
- The scheme is open to registered social landlords, local authorities and energy service companies (ESCOs) in Scotland.
- Funding is only for the retrofit of existing social housing stock and is not for new build social housing.
- Projects must demonstrate a tangible reduction in energy bills for residents.
- If you have not previously received support from SHNTZF, your application will be prioritised
- Projects are funded in the form of a one-off grant.
2. Know your project
Theme 1: Clean Heating Systems for Social Housing retrofit across Scotland
All projects funded under this theme should cover the delivery of innovative technologies and clean heating systems to ensure reliable, cost-effective heat for social housing. Each project will receive up to 60% of the total Capital Expenditure (CAPEX) for clean heating elements only, such as:
- Installation of heat pumps including air, water and ground source
- Biomass boilers*
- Connection to existing heat network
*See exceptions on the Scot Gov website
Theme 2: Fabric First Energy Efficiency only
This theme focuses on fabric-first energy efficiency projects, such as insulation projects to reduce energy demand, alongside Solar PV and battery storage to lower tenant bills.
Each measure is highlighted on the government website, with scope to include more on discussion with the Social Housing Decarbonisation Team.
It is recommended projects take a multi-measure approach if applying for this theme. Single-measure projects may be considered provided there is clear evidence to justify the restricted scope.
In addition, projects must be prepared to transition to a clean heating system in the future to remain eligible, ensuring the property is future proofed in alignment with current energy standards.
The financial support available represents a funding contribution of up to a maximum of 50% of eligible CAPEX costs.
The maximum grant per organisation is up to £5 million, with up to £35,000 available per property.
3. Know the deadlines
Adhering to the dates below is essential in ensuring your funding claim is approved. While the project delivery timeline offers a level of flexibility, the funding must be spent within the financial year:
- Application Deadline: 11th May 2026
- Completion Deadline: Projects can run until September 2027.
- The full grant amount must be claimed within the 2026/27 financial year.
As Scotland’s leading procurement partner, our solutions have been the driving force needed in accelerating net zero initiatives that align with funding requirements. We understand the nuances of the application process and the technical requirements needed to deliver these retrofits successfully.
We spoke with SPA’s Regional Business Manager, Ross Barty, to understand exactly how the funding supports the Scottish public sector, and how SPA can help streamline how the funding is used alongside the deadlines.
Contact the SPA team today to leverage our expertise and ensure your Checkpoint 11 application stands the best chance of success.