Launch of £32m Heat Network Efficiency Scheme for England and Wales

Grants are available for organisations operating across the public, private and third sectors in England and Wales for upgrading existing heat networks to reduce emissions and energy costs.

The Heat Network Efficiency Scheme (HNES) provides funding to support improvements to existing district heating or communal heating projects that are operating sub-optimally and resulting in poor outcomes for customers and operators.

Heat networks offer carbon emissions savings by supplying heat to buildings from a central source, avoiding the need for households and workplaces to rely on individual, energy-intensive heating solutions – such as gas boilers. As such, heat networks provide a significant contribution to the UK’s carbon reduction commitment.

HNES has an overall budget of £32 million, which will be distributed through capital and revenue grants. There is no upper or lower limit for capital grants, and up to 50% of eligible projects costs can be funded. Revenue grants will typically be in the range of £15,000 to £24,000 per project, covering up to 100% of eligible costs.

The scheme is open to applications from public, private and third sector organisations operating in England and Wales. Organisations that are responsible for operating or managing existing district heat networks or communal heating systems will qualify. Examples are NHS trusts, universities, government departments, charities, community investment companies, and businesses that submit annual accounts.

The scheme will run multiple funding rounds, which will take place approximately bi-monthly. The deadline for Round 1 is 31 March 2023.

(This report was the subject of a GRANTfinder Newsflash.)