New heat network efficiency pilot is positive first step

More investment and long-term action needed to deliver improvements.

Consumer Scotland has welcomed the Scottish Government's announcement of a new £200,000 heat network efficiency funding pilot.

However, Consumer Scotland wants to see a longer term programme of support, backed by sufficient funding to deliver better outcomes for heat network users.

Consumer Scotland Head of Energy Transition Alistair Hill said: 

“This fund is a first step in recognising the significant positive impact improving heat network efficiency and infrastructure can have on consumers.

“Poor efficiency and infrastructure issues can result in higher costs and poorer service for consumers. Addressing these problems will be essential if heat networks are to play the role envisaged in Scotland's transition to net zero.

"To tackle the scale of the challenge facing many existing heat networks further funding will be required to protect consumers.”

Background

The Scottish Government has announced a new efficiency funding stream under Scotland's Heat Network Fund as a one-year pilot.

The fund will provide up to £200,000 to support studies that assess the efficiency of existing heat networks and identify potential improvements.

Funding of up to £25,000 per project is available to heat network owners across the public, private and third sectors, with applications closing on 7 October 2026.

Consumer Scotland wrote to the Scottish Government in 2024 recommending the introduction of support equivalent to the Heat Network Efficiency Scheme (HNES) in England and Wales.

We have continued to work with the Heat Trust and others to encourage and support the Scottish Government to consider how it supports existing heat networks.

HNES provides funding to support improvements to existing district and communal heating systems that are operating inefficiently and leading to poor outcomes for consumers.