Asset Decarbonisation & Retrofit DPS

Scotland’s legally binding 2045 net zero target (five years ahead of the rest of the UK) creates urgency for social housing retrofit. The Heat in Buildings Strategy sets interim milestones including all social housing achieving EPC Band B by 2032 where feasible and cost-effective, and EPC Band C as minimum by 2033. These timescales are tighter than England’s Social Housing Decarbonisation Fund requirements. Scottish landlords need rapid procurement routes to meet these deadlines, making the DPS’s 10-day procurement timeline valuable.

Scottish Government provides several funding routes supporting retrofit procurement. The Social Housing Net Zero Heat Fund provides capital grant funding for social landlords installing zero emissions heating systems. The Warmer Homes Scotland programme (delivered by Home Energy Scotland) provides funding for energy efficiency improvements and heating upgrades. Area Based Schemes fund local authority-led retrofit programmes in specific geographic areas. Scottish local authorities can access funding through the Scottish Government’s Heat Network Fund supporting district heating development. The DPS procurement route is funding-neutral, meaning organisations can use it regardless of funding source. Contractors accessed through the DPS can advise on funding maximisation and often have experience delivering Scottish Government-funded programmes. For organisations bidding competitively for Scottish funding, the DPS enables rapid contractor engagement once funding is confirmed, reducing time between award and delivery start. 

Scottish housing stock has distinctive characteristics affecting retrofit approaches. Tenement buildings (common in Scottish cities) require coordinated approaches across multiple flats sharing common walls and roofs, creating procurement and delivery complexity. Traditional stone construction with solid walls needs specialist external or internal wall insulation avoiding moisture and condensation issues. Off-gas-grid properties (more common in rural Scotland) need heat pump or renewable heating solutions rather than gas boiler replacements. Exposed locations (particularly Highland and Island properties) face higher wind loads and weather exposure, affecting appropriate insulation and heating solutions. Conservation area restrictions (particularly in Edinburgh and Glasgow) limit external changes, requiring sensitive retrofit approaches. The DPS includes contractors experienced with Scottish building types and constraints, understanding appropriate retrofit solutions for tenements, stone properties, rural locations and conservation areas. 

Scottish Building Standards (managed by the Scottish Government) set requirements for building work including retrofit. Key standards affecting retrofit include energy performance (Section 6), ventilation (Section 3), and fire safety (Section 2). Building warrant applications are required for most retrofit works including insulation installation, window replacement, and heating system changes. Certification schemes (like SELECT for electrical work) can reduce building warrant requirements in some cases. Scottish Building Standards place particular emphasis on ventilation following insulation improvements, requiring assessment and remediation where necessary. The DPS includes contractors familiar with Scottish Building Standards requirements and the building warrant process. Contractors can advise on which works require warrants, coordinate applications, and provide certified installations satisfying building control requirements. For organisations undertaking large retrofit programmes, understanding building warrant timescales and requirements is essential for programme planning. 

Heat pumps are central to Scotland’s net zero housing strategy given the need to eliminate fossil fuel heating. The Scottish Government expects heat pumps to be the primary heating solution for most off-gas-grid properties and many on-gas-grid properties. Air source heat pumps work effectively in Scottish climate conditions despite lower winter temperatures. Ground source heat pumps offer higher efficiency but require more space and higher capital costs. Heat networks using heat pumps provide efficient solutions for tenements and dense housing. Scottish social landlords should consider heat pump suitability during PAS 2035 assessments, evaluating building fabric, space heating demand, available space, and electricity supply capacity. Heat pump installation often requires fabric improvements first, following fabric-first principles. The DPS includes heat pump installers with Scottish experience, understanding appropriate sizing, Scottish climate considerations, and integration with Scottish housing types. Some properties may require hybrid systems (combining heat pumps with backup heating) for technical or cost reasons. 

District heating suits Scottish housing where multiple properties can share centralised heat sources. Urban tenement areas (particularly in Glasgow, Edinburgh, Aberdeen) offer density supporting economic district heating networks. New social housing developments can design in district heating from inception, reducing per-property costs. Existing estates with communal heating systems can upgrade to renewable heat sources (heat pumps, biomass) serving multiple properties. Scotland has significant heat network potential given urban density, but also challenges including aging infrastructure in existing communal heating schemes. The Scottish Government’s Heat Networks (Scotland) Act 2021 creates framework for heat network development and regulation. Through the DPS, organisations can access district heating specialists for feasibility assessment, design, installation and operation. District heating enables economies of scale in renewable heat generation, potentially reducing costs compared to individual property solutions. However, district heating requires long-term maintenance commitment and resident engagement around heating charges. 

Workforce development is critical for Scottish social housing organisations delivering large-scale retrofit programmes. Scotland faces retrofit skills shortages particularly in PAS 2035 roles (assessors, coordinators, designers), heat pump installation, and traditional building fabric retrofit. The DPS includes training academy services providing PAS 2035 training, heat pump installation training, and other technical skills development. Organisations should consider upskilling existing maintenance teams to undertake routine retrofit work, engaging DPS contractors for complex or specialised tasks. Construction Scotland and Skills Development Scotland provide sector-specific training support and funding. Fair Work First requirements apply to public contracts in Scotland, meaning contractors should offer quality jobs, fair pay and training opportunities. Organisations should encourage DPS contractors to offer apprenticeships and training placements, developing future retrofit workforce. 

Scotland’s Sustainable Procurement Duty requires public bodies to consider economic, social and environmental wellbeing in procurement. For retrofit contracts, practical social value includes local employment (contractors recruiting from communities where they work), apprenticeships and workforce development creating career opportunities, payment of real Living Wage (Scottish Government expectation), community investment supporting local initiatives, and environmental practices including waste reduction and sustainable materials. Fair Work First criteria should be embedded in DPS mini-competitions, requiring contractors to demonstrate workforce practices. Community Benefits clauses can require contractors to deliver specific community outcomes like school engagement or community projects. The DPS enables organisations to specify social value requirements in mini-competitions, evaluating contractors on social value delivery alongside cost and quality. Monitoring social value delivery through contract management ensures commitments translate into actual community benefits. For large retrofit programmes, social value can include developing local supply chains, creating training opportunities, and supporting just transition to net zero economy.