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Clean heat opportunity

Clean heat will play a crucial role in helping Scotland meet its net zero targets. Find information and support on immediate, large-scale opportunities in the low carbon heat market.

Heat accounts for 51% of Scotland’s energy demand, making it a priority area for clean energy projects.

Moving forward, all homes and buildings in Scotland must significantly reduce their energy use, with the majority using a zero-emissions heating system. And with £1.8 billion of Scotland's public funds committed to supporting clean heat over the next five years, it's an industry full of opportunities for ambitious businesses.

Whether you're looking develop a product, retrain your staff, or redevelop your services to capitalise on an opportunity in clean heat, we can help. 

Funding and grants

Browse sources of funding for your clean heat project.

Clean heat opportunities

The growing Scottish, UK, and global markets offer clean heat opportunities in operational areas from design to installation.

Explore manufacturing opportunities in Scotland's energy transition 

There are also heat-related opportunities in:

The rapidly expanding low carbon heat sector offers a range of opportunities in:

  • Supply chain and manufacturing
  • Research, development, and innovation
  • Exports – the low carbon economy could deliver between £60 billion and £170 billion of export sales by 2030
  • Place-based regeneration in areas of multiple deprivation (for example, former coal mining communities)

In order to meet our 2030 climate target and reduce emissions by 75%, the majority of Scotland's 170,000 off-gas homes that use high-emissions oil, LPG, and solid fuels – as well as at least one million homes currently using mains gas – must convert to zero emissions heating.

By 2030, we'll also need to convert the equivalent of 50,000 of Scotland’s non-domestic properties to clean heating.

Around 3000 new low or zero emissions heating systems were installed in 2020. Installations are forecast to increase from 3000 per year to 124,000 cumulatively between 2021 and 2026, and to 200,000 per year by the late 2020s.

This will be achieved through district heat networks (a system of insulated pipes that take heat from a central source) or heat pumps installed in individual buildings.

There are 2.5 million occupied dwellings in Scotland, and we expect the vast majority of them to still be occupied in 2045. By 2030 we should also have made significant progress towards making all homes in Scotland as energy efficient as possible (that is, meeting a minimum standard of EPC C).

Increased energy efficiency will also be crucial to ensure the optimal performance of alternative low and zero direct-emissions solutions such as heat pumps.

Additionally, all new builds must feature higher levels of fabric energy efficiency to reduce overall heat demand. This will apply from 2024 for building warrant applications for new homes.

The following solutions will help achieve these goals:

  • More efficient building fabric
  • Draught proofing
  • Insulation
  • Better controls
  • Energy efficiency retrofitting
  • Building materials and refrigerants

Digital solutions, smart systems, sensors, and controllers will also be required to integrate with new energy efficient systems in buildings and homes.

Clean heat resources

Browse key resources covering clean heat opportunities across different sectors in Scotland.

Clean heat infrastructure factsheets 

To help Scottish suppliers identify specific opportunities in the clean heat supply chain, we've commissioned a series of factsheets that describe in detail the components required to build key pieces of clean heat infrastructure.

The factsheets will help your company identify which of your existing products and services could be used directly for – or adapted to fit – clean heat technologies.

View the factsheets 

Industry resources

HeatSource is a collaborative knowledge hub funded by our organisation, Highlands and Islands Enterprise (HIE), and South of Scotland Enterprise (SOSE). It aims to explore opportunities in low carbon heat and bring together knowledge, partners, and resources to help prepare the sector for net zero.

As well as providing industry updates, it allows you to register for events and list your business for free in the industry directory to help collaborators find you.

Find out more on the HeatSource websiteopens in a new window 

You can find a directory of companies in the low carbon heat market in Scotland on the Scottish Industry Directories Clean Heat pageopens in a new window, including specialists in:

  • Heat equipment manufacture, installation, service, and distribution
  • Energy efficiency product manufacture, installation, service, and distribution
  • Low carbon fuel production and supply

You can also advertise your own business. Check if your company is already in the directory and if your details are accurate.

Reports

If you're interested in a report that isn't listed, get in touch and we can help you access it.

This research piece explores the key technology and innovation needs for low carbon heat.

Read our Low Carbon Heat – Innovation Needs Assessment report  

This study established a baseline to enable future monitoring of growth in the clean heat sector and better understand the companies currently active in the sector.

Read our Economic Value of Clean Heat in Scotland report 

Contact us

If you have questions about clean heat opportunities, get in touch to speak to our advisers.