The Scottish government has launched a £50m 'Warm Homes' fund.

Housing Minister Margaret Burgess has announced the fund, which will see money invested in green energy projects to help heat homes across the country.

Two pilot schemes in Glasgow and the Highlands will be the first to benefit from the Warm Homes Fund.

The project will begin with West Whitlawburn Housing Cooperative in Glasgow and West Highland Housing Association in Oban receiving help to implement biomass heating schemes.

The government says this will help over 550 Scottish homes become more cost-effective to heat.

Now more councils and housing associations are being asked to submit bids for the Fund, which can be used towards biomass, hydro schemes, wind turbines and solar water heating.

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Any money made from the schemes will be expected to go towards improving the energy efficiency of existing housing.

Speaking at a renewables and fuel poverty event organised by the Scottish Federation of Housing Associations (SFHA) in Glasgow, Mrs Burgess said:

"Innovative green energy schemes like the two I have announced today can help households to heat their homes more cost effectively.

"And by asking councils and housing associations to reinvest profits into making homes easier to heat, we can ensure older, colder homes are made easier to keep warm.

"While we are doing all we can, prices rises from energy companies remain a huge concern. That is why we are urging the UK government – who has responsibility in this area – to take a firmer stance with energy companies to do more to help vulnerable people and ensure that our households are better protected."

SFHA Policy Manager David Stewart said: "As concerns about fuel poverty and climate change increase, many working within the housing association and co-operative sector believe that small scale or community renewable energy projects have a significant part to play in addressing these two issues by providing clean, affordable energy to tenants.

"We therefore welcome the Warm Homes Fund as a potential source of (loan) funding to support renewables projects that can help address fuel poverty by providing finance to meet the capital costs of investing in renewable energy projects."

(IT/GK)