Guest blog: All I want for Christmas is…low carbon heat funding in 2025?
As the year draws to a close, many landowners are making plans to decarbonise buildings and estates in 2025. The inexorable direction of government Net Zero policy and the multiple recent shocks in energy pricing are driving plans and practical projects at an increasing pace. We have written previously about the Heat in Buildings Bill and the pressure that will grow as a result of its target to prohibit polluting heating systems after 2045, but in order to bring projects to fruition, securing funding from central government and regional sources will be a crucial step for many of Scotland’s rural land and estate owners.
At Reheat, we are in the process of delivering a low carbon heat project for a major estate owner in Scotland, for whom securing government funding was a must to realise their plans to pivot towards creating a sustainable luxury resort. We regularly assist with meeting this challenge for our clients and so share some insights into funds that may support landowner projects in 2025.
Green Grant Fund
The Green Grant Fund, offered by Highlands and Islands Enterprise (HIE), provides financial assistance to businesses aiming to implement low-carbon heating technologies. This grant is particularly aimed at supporting small and medium-sized enterprises (SMEs) in adopting greener practices. The fund covers various aspects, including the installation of heat pumps, biomass boilers, and energy-efficient heating solutions. The funding is a non-repayable grant of up to £250,000 (which will cover between 10% and 40% of the total cost of a project).
Borderlands Energy Investment Programme
In the South of Scotland, the Borderlands Energy Investment Programme has opened to accelerate the regions transition to net zero by strategically investing in projects that support carbon reduction, local high value jobs, businesses and skills development and are replicable in other areas of the Borderlands region. The fund is targeting projects with a minimum grant request of £1.5m.
Heat Network Fund
The Scottish Government's Heat Network Fund offers targeted support for the development of heat networks across Scotland.
Heat networks, which distribute heat from a central source to multiple buildings, are a highly efficient way of reducing emissions from heating. The fund provides grants or loans to public, private, and third-sector organisations for the installation, extension, or retrofitting of heat networks.
Renewable Heat Incentive (RHI)
While the UK Government's Renewable Heat Incentive (RHI) scheme closed to new applicants in 2021, its impact remains significant in Scotland. A buoyant secondary market exists for accredited plants and their associated tariffs. Businesses can purchase second-hand RHI-accredited systems, amend the RHI application, and relocate the equipment or just the tariff to their new project.
Supporting Rural Communities grant
If you are a community initiative, charity, or not-for-profit organisation in Scotland, then the Supporting Rural Communities Grant may be a good place to turn for small grant funding for environmental sustainability. You can apply for grants up to £25,000.
We regularly work with clients to apply for funds and grants to get low carbon heat projects off the ground and have secured millions over the past decade. Reach out if you would like to discuss funding for your project: info@reheat.uk.com
The views expressed in this blog are those of Reheat and do not necessarily reflect the views of Scottish Land & Estates. No liability can be accepted by Scottish Land & Estates or any of its staff for any misstatement in it or omission from it.
Comments