Heat Network Efficiency Scheme provides funding to help improve district and communal heating systems

The grant programme worth £32m is for 2023/2024 and 2024/2025 and applications opened in February 2023.

The key aims of the Heat Network Efficiency Scheme are to:

• Reduce carbon emissions by making heat networks more efficient.
• Improve customer experience and confidence.
• Help prepare the heat network market for sector regulation.

The Heat Network Efficiency Scheme is available in the form of capital grants and revenue grants. There is up to £30m available for capital grants across 2023/2024 and 2024/2025. For capital grants, part funding of up to 50% is available for the delivery of eligible intervention/improvement measures. There is up to £2m available for revenue grants across 2023/2024 and 2024/2025. For revenue grants, full funding is available for third party support. Projects can apply for funding across both financial years but must spend all funding within each allocated financial year. 

The Heat Network Efficiency Scheme will run up to eight funding rounds, which will take place approximately every other month from the start of the scheme with notification letters issued as soon as practicable and subject to approvals. The application submission deadline for the final round will be Friday 10 May 2024. The scheme will close after the full £32m has been allocated so it is advisable to apply for the earlier rounds of funding.

Who can apply?

• Public sector, private sector or third sector organisations – including housing associations.
• Operators of existing district heating networks or communal heating networks.
• Heat networks situated in England or Wales.
• Legal entities with authority to sign off investment decisions for heat networks they are responsible for.

Help with applications

Further details can be found in the Heat Network Efficiency Scheme Guidance for Applicants. You can also access the recording and slides of an information session on the Heat Network Efficiency Scheme by completing this short feedback form.

If you have a general enquiry about Heat Network Efficiency Scheme or would like to request an application form you can email hnes@gemserv.com.

If you have project specific questions, you can email hnes.support@gemserv.com with your question or to request a meeting.