Warmer Homes Through Partnership
Closing Energy-Efficiency Funding Gaps in Shetland
Shetland Community Benefit Fund (SCBF), Warmworks and Shetland Islands Council are working together to help households experiencing fuel poverty or extreme fuel poverty improve the energy efficiency of their homes.
Funding from the Viking Community Fund complements the Scottish Government's Area Based Scheme by helping to meet funding gaps and supporting improvements that might otherwise be unavailable.
Before and after: one of the home's original windows and its replacement
Why the support was needed
Shetland's cold, windy climate means that poorly insulated homes and inefficient windows and doors can lead to substantial heat loss and high heating costs. National funding caps can leave owner-occupiers unable to afford the contribution required to complete recommended work. Windows and doors are also not normally funded as standalone measures, while a shortage of insulation installers has caused delays.
Feedback from households highlighted a particular need for support with windows and doors. Some older people, for example, could benefit from replacements but were reluctant to undertake more disruptive insulation work.
The project also responds directly to 'Reduced Cost of Living', identified by the wider Shetland community as a priority through consultation on the use of the Viking Community Fund.
Working together to close the gaps
SCBF and Shetland Islands Council worked together to turn these priorities into practical support, with administration of the funding subsequently moving to Warmworks.
Top-up grants of between £1,300 and £10,000 per property can help households meet contributions towards recommended work. Supported measures include internal wall insulation, air-source heat pumps, solar panels, damp-proofing, ventilation and new windows or doors.
In March 2026, Warmworks was awarded £470,314 from the Viking Community Fund to provide top-up grants, windows and doors grants and administrative support. This follows on from the earlier award to Shetland Islands Council in November 2024 of £300,000.
What the support means for households
Feedback from one supported household illustrates the difference the project can make. Following insulation work and the replacement of nine ageing windows, the householder reported a substantial improvement in warmth and comfort.
“Since the install of the windows and insulation, the difference in how warm the house has been is massive. I now feel comfortable in my home and know my retirement will be a lot cosier!”
Householder, South Mainland
Impact and learning
By May 2026, 46 energy-efficiency installations had been completed. The additional funding has allowed improvements to proceed where households could not otherwise have afforded their contribution and has widened access to measures, particularly windows and doors, that would not normally be available as standalone work.
Although quantified energy savings are not yet available, the clearest reported outcome is warmer and more comfortable homes. Better thermal performance should also reduce energy demand and help households manage their heating costs.
The project demonstrates the value of combining locally controlled community benefit funding with national energy-efficiency schemes. As Warmworks continues administering the funding, further monitoring should provide a clearer picture of the measures delivered and their longer-term benefits for households.
Contribution to the Shetland Partnership
- Participation: Community consultation and feedback from households helped identify gaps in existing support and shape the project.
- People: Households experiencing fuel poverty are being supported to live in warmer, more comfortable homes.
- Place: The project responds to Shetland's exposed climate and the practical challenges of improving homes in an island setting.
- Money: Local funding complements national schemes, helps meet otherwise unaffordable costs and aims to reduce household heating costs.
Source: Shetland Community Benefit Fund, Shetland Islands Council and Warmworks. Figures correct at May 2026.