Community heat development programme

We’ll accept applications from both:

• groups of householders
• constituted community organisations.

Groups of householders and community organisations will need to evidence good levels of interest from their local community/neighbours.

Community organisations must be constituted, non-profit distributing community organisations, including organisations with charitable status. They should be established and operating across a geographically defined community.

Applications must be led by a group of householders or a community organisation. However, we are happy to accept applications where public and private sector partners are involved, provided the group of householders or the community organisation is the lead.

Who is not eligible to apply?

Housing associations, local authority and businesses are not eligible to lead bids but can be involved and may form a local partnership as the project progresses.

As set out above, the Community Heat Development Programme is for community organisations and groups of householders. Individual households are not eligible but can access support through Home Energy Scotland.

Some proposals may be too costly, complex, or time-consuming for this scheme. If this is the case, we will look to identify this at as early a stage as possible and signpost you to other areas of support.

We are keen to hear a range of ideas from local communities, which may include communal heating systems where homes share a source of heat, as well as initiatives that utilise community action to make it easier to install individual heating systems. The following are examples of possible heat development projects.

1. A climate action group looking to collectively buy air source heat pumps and energy efficiency improvements to make it cheaper and easier for householders in their community to transition to net zero.
2. A group of neighbours in a block of flats that are considering installing a shared heating system to service the block, for example a shared air source heat pump that heats all the properties. It’s likely this might work best where there are already communal arrangements in place, such as shared stairwells and back greens.
3. Subject to restrictions around time/resource requirements and deliverability, a community-led heat network for a village that is off the gas network and which will serve multiple homes as well as potentially neighbouring businesses and other non-domestic properties too.

We’re keen to see these type of project ideas tested as well as supporting eligible community organisations and groups of householders to come forward with locally generated heat project concepts.

We’ve put together examples of programme support which sets out what we will expect as outcomes for three possible heat development projects.

The programme focuses on solutions for the retrofit of low carbon heating in existing properties. Planned new builds can only be considered where these form part of a larger retrofit project.

Our expert consultants will support you and your neighbours to:

• understand the options
• assess whether you should progress the project or not
• identify the challenges and risks associated with your idea.

All our advice is free and impartial. We’ll always try and help you identify next steps you can take, even if these are different to your original idea.

Before applying, first make sure you’ve read through all our funding guidance on this webpage. You should also read our examples of project support.

1. Complete an enquiry form

We will review your enquiry and assess whether we think it would be a good fit for support. If it is, we’ll invite you to apply.

2. Submit your application

If you are invited to apply, we will send you an application form and participant questionnaires to complete and return to us.

3. Local Energy Scotland will assess your application

We will assess your application against the Stage 1 criteria set out below. Subject to funding, eligible projects that score highly will be eligible for an initial review.

If successful, an initial review will be completed by the technical consultant.

If your project is eligible and scores highly enough, our consultant will work with you to complete an initial review of your project idea. This will be based on the information submitted in your application and conducted via a chat on Zoom or phone call, and desktop research. At this stage, the consultant will make an initial assessment of the project’s viability and identify any showstoppers. They will share the report with you and make a recommendation to us.

4. Local Energy Scotland will assess the technical consultant’s initial review

We’ll assess your project against the Stage 2 criteria set out below, using the report produced by the technical consultant as part of their initial review.

5. If successful, the technical consultant will work with you to complete a feasibility study.

If your project scores highly enough against the assessment criteria, our consultants will complete a feasibility study for you and your neighbours. This will involve them spending time in your community to understand the project and how it could be funded, delivered, operated, and maintained. The feasibility study will include advice around next steps.

6. Attend a project meeting

When the feasibility work is complete, we’ll have a project meeting with you to discuss findings, next steps, and how to implement the project.

7. Discuss possible next steps

The feasibility study and the support from advisors will guide you on the next steps to take, should the project be assessed as feasible. For example, this might be to:

• refer you to Home Energy Scotland
• signpost funding through the Scottish Government’s Heat Network Fund and District Heating Loan Fund
• consider alternative finance options to develop your project
• start getting quotes from installers
• start raising awareness of your project in your community.

Whilst applicants will not need to make a financial contribution to participate in the feasibility work, our support will be allocated on a competitive basis. Applicants won’t be means tested and the programme will support a diverse mix of project types and communities.

Participants will be required to stay involved and provide further information to maximise learnings. As this is a learning programme, the expectation is that your feasibility reports and other project outputs (with any personal information removed) will be made available for others to learn from. It is important to note that this programme is designed to generate and test ideas. If additional funding is required for any further development work and for the cost of installing the heating and energy efficiency measures, this will need to come from other sources.

We will expect the community (for example, the participating householders where the proposed project will operate) to:

• attend meetings (online), complete questionnaires, and provide photos of their current system
• nominate one or two people to be ongoing lead contacts and to appoint a second or third contact as back up too.

For more information, please see our examples of programme support.

Stage 1 – assessment for an initial review

We will assess your application using the information in your application form and the supporting documents. Based on the information provided, Local Energy Scotland will score against the following eligibility criteria:

• the project will test a community approach to decarbonise heat
• the application information demonstrates good levels of community interest
• the project will lead to good potential learning opportunities
• the project approach has a reasonable chance of success.

Stage 2 – assessment for a feasibility study

If your project is approved, our technical consultant will carry out an initial review of your project. You will receive a report to help you understand the opportunities and challenges associated with your project idea. We will use this information to undertake a further assessment of your project. Those projects that score highly against the assessment criteria will be offered the option of undertaking a more detailed feasibility study.

We will score against impact and deliverability criteria. When assessing against these criteria we will consider the project itself but also the wider learnings that may arise from completing the feasibility study.

• Impact – the project impacts assessed include reduction of carbon emissions, reduction in long-term operating costs, alignment with Scotland’s Just Transition Outcomes, and whether the project offers new insight/learning that would help other communities across Scotland.
• Deliverability – we will assess deliverability through the results of the initial review, the level of community interest and engagement in the project, the ownership/operation/maintenance options, and the potential delivery options beyond the feasibility support.

These are some resources to inspire your community and generate ideas about heat projects. 

• Watch our CARES Conference 2022 session on how to develop at heat project.
• The Scottish Government’s District Heating Loan Fund is designed to help address the financial and technical barriers to district heating projects.
• The Heat Network Fund financial support available to facilitate the delivery of low or zero emission heat network projects across Scotland
• Home Energy Scotland can help householders with free, impartial advice on saving energy, keeping warm at home, renewable energy, cutting water waste and more.
• Energy Saving Trust has more information on saving energy at home and installing home renewables, including air source heat pumps.