ScotZEB3 is open. The deadline is close, and the real work is the delivery plan.
ScotZEB3 is now open, with up to £45 million available to accelerate the move to zero-emission buses in Scotland. It is being administered by Energy Saving Trust on behalf of Transport Scotland, and applications close at midnight on 26 February 2026. Funding awards are expected in early spring 2026.
For operators, manufacturers and finance partners, ScotZEB3 matters because it is designed to push projects from “good intention” to “order placed”. It is a competitive scheme, and it is focused on operators of registered local bus services in Scotland.
What the scheme will fund
The Energy Saving Trust guidance sets out what is in scope: new battery-electric or hydrogen fuel cell buses and coaches running on regulated local routes, repowering existing diesel buses to full zero-emission compliance, and capital spending on charging or refuelling infrastructure.
| Category | What it applies to | Maximum grant |
|---|---|---|
| Minibus (accessible) | 9+ passenger seats with wheelchair space | £57,500 |
| Mid-size bus | Around 32+ seats | £101,000 |
| Full-size battery-electric bus (accessible) | 45+ seats | £122,000 |
| Repowering (conversion) | Converting an existing diesel bus to electric | £50,000 |
| Infrastructure | Charging / refuelling infrastructure capital costs | Up to 70% of eligible capital cost |
The grant is only part of the funding story
Because ScotZEB3 is partial funding, strong bids usually show how the “rest of the money” is secured and how the project will be delivered without slipping. The guidance is blunt about timing and drawdown: grants are linked to evidence of contracted orders and spend, and forecasting and project management sit with the applicant.
That’s where finance partners can add real value. Not just “fund the balance”, but help shape a plan that matches the cashflow of buses, chargers and grid works, and avoids a gap between when suppliers need paying and when grant payments are released.
Consortium bids are a clue
ScotZEB3 allows consortium bids that can include financiers, manufacturers, charge point operators and energy companies. This encourages joined-up delivery, and it reduces the risk of a bus order landing before the depot is ready.
What to do next
If you’re planning a bid, treat the deadline as real. Build a simple delivery plan with clear milestones: vehicles, infrastructure, grid connection, training, and service entry dates. Then make sure the financial model fits those dates.
Remember, that these grants make it much easier to secure the asset finance you need to upgrade the fleet. Acting as a substantial deposit against the asset, out funders are keen to finance these type of assets.
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