A new £2.3 million fund to develop water source heat pump schemes has been launched.
The technology extracts heat from water even on cold days and uses the heat stored in water sources from rivers and canals to supply low carbon heat efficiently.
The Water Source Heat Pumps Challenge Fund will support the development of large scale projects that need help to attract further investment.
Around £375,000 will be available to develop business proposals.
The Scottish Government is inviting bids from individuals and organisations from the public, private and community sectors with project proposals that can supply low carbon heat to district heating systems in Scotland but need further investment to complete the installations.
Scotland’s Energy Minister Fergus Ewing said: “Supporting the development of district heating and wider low carbon technologies will help maximise the economic opportunities from Scotland’s low carbon sector.
“Heat is estimated to account for over half of Scotland’s total energy use and responsible for nearly half of Scotland’s greenhouse gas emissions so the imperative to take action is very clear.”
The country has set a target of connecting 40,000 homes to district heating networks by 2020.