Funding for low cost heating schemes

Local organisations are being encouraged to apply for Scottish Government funding to help fund low carbon affordable heating for householders

Managed by the Energy Saving Trust and open to local authorities, social landlords, small and medium enterprises (SMEs) and community groups, the district heating loan fund has has provided more than £7 million of loans to applicants across Scotland.

The the next round of funding, which is the biggest yet, is available now and there are three months in which to apply.

Low interest, unsecured loans, typically up to £400,000 per project, will be available for repayment over a period of up to 10 years. Projects wishing to apply for higher value loans can also submit applications which will be considered on a case by case basis.

The Energy Saving Trust will also provide technical support, guidance and assistance with the application process.

The last round of funding reduced heating bills and brought affordable warmth to householders across the country. These projects have also generated other benefits such as the creation of local employment and the reduction of greenhouse gases.

Mike Thornton, director of the Energy Saving Trust, said: “This scheme has proved popular since its launch in 2011, with housing associations, SMEs, councils and community groups all recognising the need to take action sooner rather than later to reduce fuel bills.

“In this financial year alone we have allocated a total of £2.7 million to 12 projects. This next round of funding is the largest yet, so we want to encourage as many people as possible to take advantage of the scheme. However, the funding round closes at the end of May, so there is no time to waste.”

The loans granted so far, to 33 different projects across the country, have resulted in 7,000 tonnes of carbon dioxide emissions e saved each year which amounts to a massive 175,000 tonnes of carbon dioxide saved over the lifetime of the projects.

Further details of the fund are available from Energy Saving Trust on its website at or email