While heat pumps are slated to be a dominant force in achieving net zero heat, direct electric heating systems pose a significant economic opportunity for Scotland. In this report, CLT assessed the nine current manufacturers’ capabilities, market statistics, opportunities, growth drivers and growth barriers to create a series of recommendations for relevant stakeholders and direct-electric businesses to take advantage of the market. In the end, it was found that there are severe gaps in holistic understanding of the direct electric heat market in Scotland, and that their positioning as a genuine economic opportunity for net zero is not defined. This is problematic due to the known carbon benefits of electric heating (e.g., flexible grid use of storage heaters), and through the Scottish grid’s progress in already-established domestic market base of over 160,000 homes on electric storage heating, and significant economic opportunities for electric heating (esp. zone-heating) for industrial and commercial sites. CLT closed the report by recommending a series of actions to connect the disparate direct electric heat manufacturers in Scotland to support education initiatives for public installers and the public, and further recommended the Scottish government to explore the consequences of the proposed shutdown of the storage heating systems’ radio/tele metering facility in March 2024, as storage heaters have significant carbon-savings due to their ability to utilise the grid flexibly.