The new programme has been developed by Scottish Enterprise in conjunction with the Scottish Government and aims to support and grow a strong green heat supply chain that can deliver at scale in all areas of Scotland with partner agencies Highlands and Islands Enterprise and South of Scotland Enterprise.

The Green Heat Innovation Support Programme is open to manufacturers of heat network components, heating products (including all types of heat pumps, thermal storage) as well as energy efficiency products, components and technology including heat storage and digital/smart controls.

Applications will be open for:

• Research and development grants: Either through application for a R&D grant/feasibility study directly to SE or through the EU Clean Energy Transition Partnership
• Capital support grants, called the Regional and SME Investment Subsidy Scheme
• Procurement: Competitive CAN DO calls in specific areas

Scottish Enterprise director of economic opportunities and climate Suzanne Sosna said: “The Green Heat Innovation Support Programme will build the Scotland-based engineering and manufacturing supply chain to support local and global markets as we develop sustainable heating solutions.

“We are committed to delivering a just transition to a greener economy through our net zero programmes. The scale of opportunity is significant and fast growing against a backdrop of consumer demand and the need for energy security.

“Our role is to enable businesses to innovate in the green heat market, attract investment, create jobs and expand internationally.”

The programme launches a year since Scottish Enterprise outlined its commitment to decarbonising heat during events at COP26 in Glasgow and follows the launch of the Scottish Government’s Heat in Buildings Supply Chains Delivery Plan.

In Scotland, heating buildings accounts for around 20% of the country’s emissions and meeting the Scottish Government’s ambitious target to fully decarbonise the heat supply to Scotland’s buildings by 2045 requires rapid deployment of zero emission technologies in all buildings.

The total Scottish heat network market size from 2022 – 2030 is estimated to be £5.2 billion and in the UK is an estimated £26.7 billion according to research from Ramboll for Scottish Enterprise and highlights the scale of opportunity for companies.

The Scottish Government’s National Strategy for Economic Transformation (NSET) identifies Scotland’s transition to net zero as an environmental imperative and significant economic opportunity.

It has committed £1.8 billion to support the decarbonisation of heat through initiatives such as the Green Heat Innovation Support Programme delivered by Scottish Enterprise.

The Heat in Buildings Supply Chains Delivery Plan is part of a wider drive to develop Scotland’s green heat sector and ensure the right people, skills and technology are in place to make homes and buildings warmer, greener and cheaper to run.

The plan outlines the need for growth and innovation within the supply chain to meet demand driven by future regulations around heating and energy efficiency. It also highlights that supporting training, industry engagement and funding for R&D will help grow the green heat sector.

Zero carbon buildings minister Patrick Harvie said: “The Scottish Government’s Heat in Buildings Strategy sets a hugely ambitious vision to cut carbon and improve energy efficiency across Scotland’s homes and buildings, and ensuring we have a strong, skilled supply chain that’s capable of delivering at scale is central to its delivery.

“The development of our heating industry should be seen not only as a challenge which must be met in order to deliver on our ambitions, but as a substantial economic opportunity.

“The Green Heat Innovation Support Programme is designed to help the sector seize this opportunity, and I would urge all eligible businesses to find out more about how the programme can support the growth and development of green heat technology.”