Kateryna Kontsur, Energy Expert, Razom We Stand

Scotland’s experience demonstrates how modernising heating systems can be strategically important for Ukraine’s energy recovery, while simultaneously combating fuel poverty and achieving climate goals.

Strategic goals

Combating the climate emergency remains a global challenge of our time, and Scotland’s goal of net-zero emissions by 2045 is at the heart of the government’s efforts. This requires rapid changes in how buildings are heated. Therefore, the country has a number of government and grant programmes aimed at overcoming energy poverty and improving energy efficiency. Depending on the situation, consumers can apply for a grant or loan to finance energy efficiency in their homes from the Scottish Government, the UK Government, their local council or their energy supplier.

First and foremost is ECO, a major UK government programme that, since 2013, has required energy companies to finance energy-efficient upgrades to low-income or vulnerable households with outdated heating systems, such as non-condensing gas boilers. A total of £4 billion has already been allocated to improve British homes. The programme provides the following services free of charge: insulation of walls, attics and rooms, roof insulation; replacement of outdated electric storage heaters; modernisation of boilers from non-condensing to condensing (gas only); installation of air-to-water heat pumps.

Scotland is thus tackling two challenges simultaneously:

1. Reducing household costs and overcoming fuel poverty through insulation and modernisation of heating systems;
2. Decarbonising heat in buildings (transition from gas and oil to heat pumps, heating networks, etc.) within the Scottish Government’s Heat in Buildings Programme, which has been implemented since 2019.

Technological solutions and the national programme “Warmer Homes”

Examples of clean heating systems include district heating networks and heat pumps, as well as other electrical systems such as storage water heaters. Unlike gas and oil boilers, they do not produce emissions during use. 

The Scottish clean heating sector consists of more than 470 companies. Heat pumps, energy efficiency in buildings and biomass/biogas/anaerobic digestion account for more than 80% of employment in this sector.

According to an official report by the Scottish Government, thanks to the targeted implementation of its programme, emissions from buildings are falling and the number of heat pump installations is rising (along with public awareness). At the same time, the vast majority of buildings, over 70%, still rely on gas.

Warmer Homes Scotland is a national programme of the Scottish Government aimed at combating fuel poverty, which provides support of £10,000 or more to eligible households through measures such as insulation and green heating systems in their homes. The scheme mainly supports owner-occupiers, but also covers tenants in private homes. It has been running since September 2015 and has helped over 46,000 households across Scotland. In 2024–2025, WHS supported 7,334 households by implementing 14,778 measures relating to heating, insulation and renewable energy sources. Under the WHS programme, new gas boilers continue to be installed (they can be relatively cheaper to operate due to high electricity costs).

Clean heating systems installed between 2023 and 2025 consist of high-efficiency electric storage heaters and air-source heat pumps.

However, households must meet several criteria to be eligible for assistance, such as having a dwelling size of up to 230 cubic metres, belonging to municipal tax bands A, B, C, D or E (check on the Scottish Assessors website ), low energy rating, suitability for habitation, receipt of benefits, and the presence of residents over 75 years of age or terminally ill.

If the consumer does not meet the criteria for participation in the programme, they can receive assistance through a grant and loan from Home Energy Scotland or through a local support scheme via their local council.

Assistance mechanisms: grants, loans and advice

The Home Energy Scotland (HES) grant and loan scheme for installing clean heating and energy efficiency systems is open to all owner-occupiers of residential properties in Scotland and targets heat decarbonisation measures in homes, such as the installation of hybrid systems, including heat pumps, solar photovoltaic systems, and storage batteries.

Home Energy Scotland is an advisory service funded by the Scottish Government and operated by the Energy Saving Trust. Residents can get advice on creating a warm and energy-efficient home, reducing energy bills, and exploring greener energy options, such as renewable energy sources for the home. The estimated amount of funding is £16,500 with cashback of up to £9,000, and if the installation cost is higher, an interest-free loan is available to cover the difference (subject to a limit).

Households in Scotland can apply for this funding for each type of energy efficiency measure:

• air/ground/water heat pumps — £7,500 (loan);
• connection to district heating — £7,500;
• solar thermal energy — £5,000;
• hybrid solar photovoltaic system/water heating — £5,000;
• wood-fired boilers (biomass) and associated furnaces — £7,500;
• wind turbine — £2,500;
• hydro turbine — £2,500;
• solid wall insulation — £2,500 (loan) + £7,500 (grant);
• insulation of flat roof or attic space — £1,000 (loan) + £3,000 (grant);
• loft, cavity and floor insulation — £500 (loan) + £1,500 (grant);
• insulated doors — £4,500 (loan);
• high heat storage capacity storage heaters — £5,500 (loan) + £2,500 (grant);
• heat pump units — £5,000;      
• double/triple glazing — £8,000.          

Other energy efficiency measures were also actively implemented between 2023 and 2025: secondary glazing, waste water heat recovery systems, heating control systems, cylinder thermostats and water heater covers. Gas boilers with low energy efficiency ratings were also replaced, and heat meters, wind turbines and hydro turbines were installed. These measures directly contribute to the decarbonisation of domestic heating and reduce demand for heat, which would be less likely without government support.

In total, the Scottish Government has allocated £1.8 billion to implement the Buildings Heating Strategy from 2021.

There is a strong focus on raising awareness to motivate people to upgrade their heating systems and insulate their buildings. In May this year, Consumer Scotland published a study by Changeworks that looked at the barriers consumers face when installing heat pumps. The study identified high upfront costs, myths and misinformation about the effectiveness of low-carbon technologies, and installation issues as the main barriers.

The role of gas networks and support for vulnerable consumers

Scotland has a programme called Help to Heat, which is implemented by SGN, the gas distribution network operator serving Scotland and southern England. Not everyone is eligible for support, only so-called “vulnerable groups”. Specific criteria have been established for the provision of assistance, including the availability of benefits, low household income after deducting rent or mortgage costs, high expected costs of adequate heating the home, the health status and/or energy efficiency rating of the home.

With the participation of the Scottish gas network operator, targeted support programmes for vulnerable groups are implemented in conjunction with government and regulatory mechanisms.

SGN Central Heating grants are several grant support schemes and programmes involving the Scottish gas operator SGN. In practice, it most often works as part of a package within SGN Help to Heat. In many cases, funding is “combined” from several programmes — for example, ECO + Warmer Homes Scotland + SGN Central Heating Grant.

The Safe & Warm Community Scheme supports public sector organisations and charitable initiatives working with vulnerable groups (the elderly, people with disabilities, low-income households, migrants, etc.). It funds both practical assistance to households and awareness-raising and prevention projects. This is a grant and support programme run by gas distribution company SGN, funded by the VCMA regulatory mechanism — a targeted surcharge on the gas network operator’s tariff to fund projects outside its licensed activities (such as supporting consumers in exceptional circumstances). This is not a “boilers for homes” scheme, but a fund from the gas network operator SGN for local/community organisations to support people in fuel poverty. Under the Safe & Warm scheme, SGN works with social and advisory organisations.

Eligibility for assistance depends on the circumstances of the resident or tenant of the property. This means that landlords and local authorities can access funding if their tenant has applied and is eligible. 44% of those living in rented accommodation in Scotland are in fuel poverty, so priority is given to this sector to improve conditions.

Between January 2023 to May 2025, just over £2.5 million has been allocated under the Safe and Warm scheme to 67 community organisations that have supported nearly 40,000 households in energy saving, winter resilience and carbon monoxide awareness.

The project to support vulnerable households in Scotland and Southern England, implemented by gas distribution network operator SGN from 2021 to 2026, has an ambitious goal of helping 500,000 vulnerable customers use energy safely, efficiently and affordably.

Experience of communities, SMEs and public institutions

The Social Housing Zero Heating Fund programme offers grant funding to support social housing landlords across Scotland in installing clean heating systems and energy efficiency measures, including heat recovery with mechanical ventilation, heating controls and thermostatic radiator valves, hot water cylinder insulation and airtightness measures. In 2024-2025, the scheme supported over 1,600 social housing properties in implementing energy efficiency measures and over 780 properties in implementing renewable energy and/or clean heating measures.

There is also an SME Loan and Cashback Scheme, which supports Scottish organisations in implementing energy-efficient and renewable technologies to reduce carbon emissions and energy costs, thereby increasing economic competitiveness. It provides unsecured interest-free loans of up to £100,000 to small and medium-sized enterprises, non-profit organisations and charitable foundations.

Separately, the Scottish Green Buildings public sector decarbonisation scheme is the main government capital funding mechanism to support the decarbonisation of public sector buildings. The Scottish Government’s Energy Efficiency Grant Scheme has supported over 300 energy efficiency measures and nearly 170 renewable energy/clean heating measures in public sector buildings between 2021 and 2024.

In Scotland, as in the rest of the UK, grant programmes at the local council level, ranging from £5,000 to £50,000, are also widely used to help vulnerable households provide “winter support”, etc. For example, the SSE Renewables fund supports communities located closest to renewable energy sources and implements economic and environmental change projects.

Here is an example of how the Home Energy Scotland expert advice system and energy efficiency funding works in Scotland:

• A consumer contacted Home Energy Scotland for advice on how to make their home as energy efficient as possible in order to reduce energy costs and carbon emissions.
• The advisor provided advice on air source heat pumps and their manufacturers, installation requirements, other construction aspects and available financing to help cover the costs.
• After applying, the consumer received a £10,000 interest-free loan from Home Energy Scotland, funded by the Scottish Government, to cover the cost of installing the heat pump, with a cashback of £7,500.
• In parallel with the installation of the heat pump, the budget also covered the insulation of walls, floors and attics, as well as the replacement of pipes and radiators.
• A noticeable difference in electricity bills and an improvement in the energy rating of the house, in line with the Energy Performance Certificate (EPC), have been achieved.

Conclusions for Ukraine

Scotland’s heating and energy efficiency support system is complex and multi-layered. It is not universal, but it can improve living conditions and save money for vulnerable households. Scotland’s emphasis on advisory support and working with the public is equally valuable.

Scotland does not limit itself to a single mechanism, but builds an ecosystem of programmes: for the most vulnerable households, for the middle class, for tenants, communities, SMEs and the public sector.

In this experience, the combination of energy efficiency with the transition to alternative heat sources is particularly valuable for Ukraine. Large-scale insulation of buildings, together with the introduction of heat pumps, heating networks, storage systems and renewable energy sources, not only reduces heating bills but also reduces dependence on fossil fuels and energy imports — a critical issue in the context of security risks.

With a comprehensive approach, state policy to support thermal modernisation can become not only a social and climate tool for implementing energy efficiency, but also a powerful lever for attracting private sector funds and a driver of sustainable economic recovery in the country.