District Heating Loan

Make your district heating project more affordable

As the cost of home heating continues to increase, it has never been more important to ensure our communities develop affordable, locally produced heat which will cut fuel bills and carbon emissions.

The Scottish Government’s district heating loan fund is designed to help address the financial and technical barriers to district heating projects as commercial borrowing can be extremely expensive and difficult to obtain.

Loans up to £500K are available as low interest unsecured loans, with repayment terms of either 10 or 15 years. Loan terms for larger projects (over £500K) will be considered on a case by case basis.  A typical interest rate of 3.5 per cent applies for low risk projects (dependent upon credit status).  The scheme is open to local authorities, registered social landlords, small and medium sized enterprises and energy services companies [ESCOs] with less than 250 employees.

Since 2011, more than £10M has been lent to 40 different projects across Scotland.  These projects have generated benefits such as providing affordable warmth to householders, creating local employment, reducing costs for businesses and reducing greenhouse gas emissions.

Express an interest

If you have district heating projects which you would like to be considered for this year’s funding round please download the expression of interest form and send the completed form to districtheatingloans@est.org.uk

Once you submit your expression of interest we will then contact you to discuss your project in more detail.

District Heating case studies

Watch a case study on a district heating project serving householders, public buildings and businesses in Wick.

Projects awarded funding through district heating loans funds

District heating loans evaluation 

Warm Homes Fund case studies 

Find out about some of the successful projects that have been funded by the programme, including district heating projects.

Database of renewable heat installations

The Scottish Government has set a target for 11 per cent of non-electrical heat demand in Scotland to come from renewable sources by 2020.

In order to help measure progress towards this target, the Energy Saving Trust maintains a database of renewable heat installations on behalf of the Scottish Government. The database records installations known to be operating and those currently in various stages of development, and contains data on the capacity and yearly heat output of those installations.