Scotland’s Public Sector Heat Decarbonisation Fund returns for Phase 3

The major funding scheme supporting Scotland’s drive to net zero has entered its third phase, with new grants now available to the public sector.

Phase 3 of Scotland’s Public Sector Heat Decarbonisation Fund builds on the success of the first two rounds, which supported organisations in transforming how they heat their buildings and reducing carbon emissions.

The scheme is delivered by Salix on behalf of the Scottish Government and forms part of wider national efforts to decarbonise Scotland’s building stock and progress towards the 2045 net zero target.

Salix Chief Executive Kevin Holland said:

Salix is proud to deliver the third round of this high impact scheme.

Through phases one and two, this investment has made a positive difference for the people who use these buildings every day, creating warmer, better adapted spaces that are cheaper to run.

From improved energy efficiency to low carbon heating systems, these upgrades enhance how people experience their buildings across Scotland.

Phase 3 marks another important step forward. As climate change accelerates, this programme continues to reduce carbon emissions and energy bills, while delivering tangible benefits for communities.

Across Phases 1 and 2, more than £20 million has been awarded by the Scottish Government to decarbonise heating in public sector buildings. Successful recipients have included Edinburgh Napier University, South Lanarkshire Council, South Ayrshire Council and Glasgow Life.

Applications for Phase 3 will open from 24 March to 29 April 2026, with applicants given six weeks to submit proposals.

Further details, including eligibility and guidance notes for Phase 3 of Scotland’s Public Sector Heat Decarbonisation Fund, are available on the Phase 3 area of Salix’s website.