Heat networks
Heat networks form an important part of the government’s plan to reduce carbon and cut heating bills for customers.
Heat networks are vital to making net zero a reality in the UK. In high density urban areas, they are often the lowest cost, low carbon heating option. This is because they offer a communal solution that can provide heat to a range of homes and businesses by capturing or generating heat locally.
By driving forward new low carbon technologies like heat networks, we can cut the use of fossil fuels for heating our homes and shield households from oil and gas price rises that are being pushed up by pressures on global energy markets.
Through the Heat Network Transformation Programme (HNTP) the government is working with industry and local authorities, and investing over half a billion pounds in funds and programmes, to develop new heat networks and improve existing ones.
To help shape a successful heat network market the government also works closely with senior industry leaders through the Heat Networks Industry Council.
This collection page pulls together key information about the HNTP.
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Photo credit: Vital Energi
The role of heat networks
Heat networks distribute heat or cooling from a central source or sources, and deliver it to a variety of different customers such as public buildings, shops, offices, hospitals, universities and homes. By supplying multiple buildings, they avoid the need for individual boilers or electric heaters in every building.
Heat networks are also uniquely able to use local sources of low carbon heat which would otherwise go to waste. This could be from factories, the ground or even from rivers.
Available support
We provide targeted support to grow the heat networks sector and ensure that more homes and businesses in England and Wales can access low carbon heating and hot water. Support includes:
- funding for feasibility studies
- capital investment
- procuring external finance
- improving the performance of existing networks
Feasibility and detailed project development
The Heat Networks Delivery Unit provides grant funding and guidance through the early stages of project development.
Commercialisation and construction
The Green Heat Network Fund (GHNF) is a capital grant fund that supports the development of low carbon heat networks for organisations in the public, private, and third sectors in England.
Finance and investment
The BEIS Heat Investment Vehicle (BHIVE) is a dynamic purchasing system for public sector heat network owners and developers to procure funding and funding-related services.
Heat network operation
Heat training grant
If you work in heat networks, you could get up to £500 towards the cost of heat network training.
Training providers can also apply to offer the grant to trainees.
Energy Bill support
Heat network customers get support with their energy bills through the Energy Bills Discount Scheme. All heat suppliers with domestic customers need to apply to the scheme.
The Heat Network Efficiency Scheme (HNES)
The Heat Network Efficiency Scheme (HNES) provides grant funding to support performance improvements to existing / operational district heating and communal heating projects.
To underpin the scheme, we have published series of short guidance videos that set out a range of practical steps operators can take to improve the performance of heat networks.
Regulation, zoning and broader policy
Through the Heat Network Transformation Programme, the government is enacting legislation and developing policies and regulations to ensure that heat networks can contribute towards reaching net zero.
This includes improving consumer protection, creating the conditions to grow the market, lowering emissions, improving the performance of heat networks, and building up skills in the sector to encourage investment and jobs growth.
Products Characteristics Database
External website
Resources: tools, data, research and reports
We have developed a range of tools, data and research reports that can assist in the various aspects of heat network operation from initial planning and development through to long-term operation and expansion.
This includes resources such as a template financial model, regular reports on projects in development and the heat networks pipeline documents which contain overviews of projects and upcoming procurements that are currently being supported by government.
These Heat networks pipelines provide the market with an overview of planning, projects and procurement that Heat Networks Delivery Unit (HNDU), Green Heat Networks Fund (GHNF) and its predecessor, the Heat Networks Investment Project (HNIP) are working with.
Heat networks: guidance for developers and the supply chain
Heat network template financial model: for use by financial modellers to input values from a techno-economic model and evaluate key financial aspects of a prospective heat network opportunity.
Tools, data, research and reports
News and communications
Updates to this page
Last updated 2 April 2024 + show all updates
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Added link to Heat Network Technical Assurance Scheme (HNTAS).
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Heat Network Efficiency Scheme Round 7 now open to applications, closing 26 July 2024.
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Added link to official statistics: Heat Networks registered under the Heat Network (Metering and Billing) Regulations statistics.
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Round 6 is open, and will close to applications on 2 February 2024.
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Heat Network Efficiency Scheme (HNES) Round 5 is now open, closing to applications on 10 November 2023.
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Added UK heat networks: market overview.
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Added links to the consumer protection consultation and the 2022 operator survey.
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Added to the collection - the latest news story: "Thousands to benefit from low-cost heat in push to drive down energy bills" and available support "Apply for the Energy Bills Discount Scheme heat network support".
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Heat Network Efficiency Scheme (HNES) Round 3 has opened to applications, closing 7 July 2023.
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Heat Network Efficiency Scheme (HNES) Round 2 now open to applications, closing 19 May 2023.
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Guidance published alongside launch of Heat Network Efficiency Scheme (HNES) Round 1.
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Added link to Heat Network Efficiency Scheme (HNES) guidance. The scheme will open in February 2023.
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First published.