What is Scotland’s Public Sector Heat Decarbonisation Fund?
Scotland’s Public Sector Heat Decarbonisation Fund provides capital funding to support improvements to publicly owned buildings, such as the replacement of fossil-fuel heating systems with more energy-efficient technologies like heat pumps and heat network connections.
Similarly, changes to the insulation and upgrades to the building fabric (known as ‘fabric first’ improvements) are also permitted, along with whole-building retrofit projects that attempt to reduce the building’s demand for energy.
The scheme is designed to support Scotland’s ‘Net Zero by 2045’ target, encouraging public bodies to take a strategic, long-term view of their estates.
Key funding details
In this 2026/27 round, organisations can receive up to £2.5m in funding for eligible capital costs, including installation and commissioning.
Projects must be carried out within the 2026/27 financial year, with the funding spent by 31 March 2027.
Who we work with
We support a wide range of public sector organisations across Scotland, including:
- Local authorities
- Arm’s-length external organisations (ALEOs)
- Universities and further education colleges
- Government departments and agencies
- Healthcare and public bodies
Our approach ensures alignment with both funding requirements and organisational objectives, delivering projects that are viable, compliant and impactful.
How BTG Eddisons secures Public Sector Heat Decarbonisation Funding
Well-practised in our funding strategy planning, our teams approach each application with both impartiality and understanding, ensuring that our clients receive a comprehensive service that is based on data, awareness and context.
Funding and advisory
We help you position your organisation for success by assessing the readiness of your estate for projects such as replacing heat pumps, as preparedness is a key success factor in the Public Sector Heat Decarbonisation Fund.
From there, we can identify priorities and develop funding strategies that align with schemes that allocate money to specific requirements
Funding application support
BTG Eddisons develops high-quality, competitive submissions that include technical feasibility assessments and examples of carbon and energy modelling, as well as financial appraisals and business cases to satisfy all aspects of the funding round.
Design, procurement and delivery
Our experienced teams have managed complex projects entailing detailed concept and design development, procurement, contract administration and reporting, and those teams now utilise these skills within the decarbonisation sphere.
Expert support from BTG Eddisons
BTG Eddisons has a proven track record of offering specialist advice across the public sector, including within education, NHS and wider estates. Securing funding, preparing decarbonisation strategies, and delivering compliant, high-impact projects are cornerstones of our projects.
Our service is formed by integrating expertise right from the start of your project. From funding planning to implementation of the improvements, we are focused on providing you with the opportunity to save costs and reduce carbon in a measured and sustainable way.
Let us help with Public Sector Heat Decarbonisation Fund
Our experienced decarbonisation team are here to support your application. Please call 0800 051 2593 or complete the form below to discuss your plans with an expert.
Get in touch with the BTG Eddisons team
Please contact us for more details and information.
