The potential of Heat as a Service as a route to decarbonisation for Scotland
Item statusRestricted Access
Embargo end date07/05/2021
To reach its target of net-zero carbon emissions by 2045, Scotland needs to decarbonise heat and improve the energy efficiency of its buildings. This evidence review examines the potential of Heat as a Service (HaaS) to support this aim by providing a route to the decarbonisation of heat in domestic properties in Scotland. Heat as a Service is a term which covers a range of services that enable people to achieve a warm home in a variety of ways. These include services which provide or enable finance to purchase and install heating equipment; maintenance of heating equipment; energy efficiency upgrades of building fabric; paying for the amount of heat delivered to the home; paying for the temperature the home is heated to; paying flat-rate tariffs for the home to be heated; or combinations of these. Although, to date, there is not much evidence as to what has been tried or how effective it has been in delivering substantial emissions reductions, the limited evidence we found suggests that some HaaS offers potential to: help get Scotland to net zero by accelerating the uptake of low-carbon heating systems and improving energy efficiency across the domestic energy market; improve outcomes for consumers, especially the more vulnerable, by helping target financial support and providing better cost certainty; and support businesses in developing new, sustainable, business models and creating new jobs. The report outlines HaaS business models that have been tried across Europe, and categorises them in terms of the outcomes they offer consumers. It looks into the potential benefits of HaaS for Scotland, and some of the current barriers. Through case studies, it explores in more detail how different business models might work and be adapted to Scotland, and makes six recommendations as to how the Scottish Government could take HaaS forward.