Public, private and third sector organisations in England and Wales can apply for funding to improve the performance of existing heat networks.

The £32 million Heat Network Efficiency Scheme (HNES,) funded by the Department for Business, Energy and Industrial Strategy, will provide funding to heat network operators to make improvements to existing heat networks or communal heating projects that are not performing to their maximum efficiency, resulting in better outcome for customers and operators. The scheme will provide up to 50% funding for capital works, and up to 100% funding for Optimisation studies.

Organisations eligible to apply include:

  • Public sector organisations including NHS Trusts and Universities, and other Government Departments.
  • Private sector organisations that are registered companies and submit annual accounts.
  • Third sector organisations such as registered charities, community investment companies and other such organisations that are officially registered and submit annual accounts.

The scheme will run until 2025. The next closing date for applications is the 26th July 2024.

The Department for Business, Energy and Industrial Strategy have produced a series of guidance videos that set out practical steps that heat network operators can take to improve the performance of their systems under HNES.