Heat Network Transformation Programme provides funding to help improve district and communal heating systems

09 January 2024

The Heat Network Transformation Programme includes the Heat Network Efficiency Scheme, which provides funding for public, private and third sector applicants in England and Wales to improve district heating or communal heating systems, and the Green Heat Network Fund, which supports the development of new and existing low and zero-carbon heat networks.

In December 2023, the government announced an additional £45m for the HNES from 2025 to 2028. They also announced a further £485m for the Green Heat Network Fund over the same period.

Heat Network Efficiency Scheme

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.

Green Heat Network Fund

The Green Heat Network Fund (GHNF) is a capital grant programme that opened to applicants in March 2022.

The scheme aims to develop and grow the heat network market and to address some of the challenges of decarbonising the UK’s heat sector. The grant funding will support:

  • The commercialisation and construction of new low and zero carbon (LZC) heat networks (including the supply of cooling).
  • The retrofitting and expansion of existing heat networks.

Who can apply?

The GHNF is open to organisations in the public, private and third sectors in England. 

Help with applications

Further details can be found in the Green Heat Network Fund Guidance for Applicants. You can also email the GHNF delivery partner, Triple Point Heat Networks Investment Management at enquiries@tp-heatnetworks.org or visit the Triple Point Green Heat Networks Fund page.

Who to speak to

Rory Hughes, Policy Officer