News Item Default

£30m fund launched for low carbon heat projects

Published: 23/09/2019

A major fund to keep Scotland at the forefront of low carbon heat innovation is now open for applications.

Front of HIE's building on Inverness Campus

The Scottish Low Carbon Heat Funding has made £30m available to businesses and organisations for innovative solutions to heat buildings.

The funding is part of the Low Carbon Infrastructure Transition Programme (LCITP) being delivered by the Scottish Government, Highlands and Islands Enterprise (HIE), Scottish Futures Trust and specialists in the sector.

The support will provide financial assistance for up to 50% of the total eligible costs of a capital project, up to a maximum of £10 million. Projects will demonstrate innovative and low carbon ways of heating our buildings, including heat pumps, as well as supporting industrial projects focused on reducing emissions.

The open funding invitation is designed to accelerate the delivery of large scale low carbon heat infrastructure projects that support Scotland’s ambition to achieve net zero emissions by 2045.

Scotland’s Energy Minister Paul Wheelhouse said:

“It’s estimated that Scotland’s homes are responsible for the emission of six million tonnes of harmful carbon dioxide into our atmosphere every year, 15% of all emissions.

“In order to meet Scotland’s ambitious proposed climate change targets, we estimate that nearly every Scottish home - unless already on a renewable heat supply - will need to have a change to its heating system by 2045, if not before.

“The Scottish Government is already making inroads to that target, by committing to ensuring that all new homes use renewable or low carbon heat by 2024, but we also want to create an environment where existing homes transition to renewable solutions as well. 

“The problem is too big for the government to tackle on its own, so we are tapping into the significant expertise and talent that exists within Scotland - giving people the means to take the initiative and effect change through deployment of innovative, low carbon approaches to heating.

“By taking this approach we’re also supporting jobs, building skills, and ultimately creating end products with an environmental and social benefit.”

Applications are encouraged within the following 3 themes; renewable heat for rural off gas grid areas, heat and industry and renewable heat for cities and towns.

Mel MacRae, senior development manager at HIE, said:

“The low carbon heat fund presents real and significant opportunities for our people, businesses and communities and we welcome this latest call. We are determined to attract, retain and develop low carbon heat models that shape our future. We are encouraging any interested business, organisation or community to apply for support under the scheme and explore how we can work together to realise the environmental and economic potential for low carbon heating solutions.”

To discuss a project idea further, contact Mel MacRae ( or visit

Workshops will take place in Perth tomorrow (24 Sept), Dumfries on the 25th and Edinburgh on the 26th. 

Related Articles