Phase 2 of Heat Decarbonisation Fund Launches
The second phase of Scotland’s Public Sector Heat Decarbonisation Fund has been announced with applications opening at 2pm on April 29th 2025.
Accessible for local authorities, universities and arms length external organisations to apply for. The fund will enable the upgrade to clean heating systems and support progress for whole-building retrofit projects that decarbonise heating systems and improve the overall energy performance of public buildings and assets.
Additionally, the fund will support a broader strategy for heat decarbonisation which includes commissioning connections for heat networks to utilise low carbon communal heating and cooling for local areas.
The scheme provides organisations with financial backing and resources to accelerate and install clean heating systems and introduce a host of energy efficiency measures in support of decarbonising heat in buildings.
Objectives of the Heat Decarbonisation Fund
There are two strategic objectives of the Heat Decarbonisation Fund:
- To support projects that will replace existing polluting heating systems with clean heating systems.
- To support energy efficiency projects where they can demonstrate that they are part of a whole building retrofit approach or broader strategy for heat decarbonisation, including connections to heat networks.
Who can apply?
- Local authorities
- Local authority arms-length external organisations
- Universities
Projects awarded funding through this scheme must be delivered by 31st March 2026.
Timeline
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Launch: |
26 March, 2pm, 2025 |
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Application portal opens: |
29 April, 2pm, 2025 |
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Application portal closes: |
27 May, 2pm, 2025 |
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Applications assessments: |
May/July 2025 |
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Grant Offer Letters distributed: |
August 2025 |
How to apply for the funding
Phase 2 of the Heat Decarbonisation Fund has been made available by Scottish Government and managed by Salix Finance.
All applications for this funding will be made using Salix’s portal.
For more information about the Heat Decarbonisation Fund and to apply visit Salix Finance
How SPA can help with project plans
Recently we launched our N9 Retrofit and Decarbonisation framework which offers a catalogue of options for the public sector to meet net zero targets, reduce emissions and improve the overall energy efficiency of homes and buildings.
It provides a comprehensive end-to-end solution, catering for all net zero and retrofit projects, from feasibility and grant funding to building fabric, electrical and clean heating.
We can assist public sector organisations to get ambitious projects off the ground with our verified network of qualified suppliers, consultants and installers.