Funding
Heat Network Efficiency Scheme (HNES)
Deadline to apply 28th March 2025
Size of Grant Uncapped
Fund Type Community
About the funding
For public, private and third sector applicants 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.
Applicants can apply to HNES for either revenue grant funding or capital grant funding.
Revenue grants
- HNES budget up to £2m across FY23/24 and FY24/25
- Funding is available for procurement or mobilisation of external third-party support to carry out Optimisation Studies. These studies will assess heat network projects to identify causes of sub-optimal performance and recommend costed intervention or improvement measures.
Capital grants
- HNES budget up to £75m across FY23/24 to FY27/28
- Part-funding available for the delivery (installation) of eligible intervention/improvement measures.
Through these two grants, HNES supports existing/operational district heating or communal heating networks to:
- Identify improvement measures for addressing customer detriment and improving operational performance (revenue), or
- Address customer detriment and improve operational performance (capital).
Who can apply?
Please read the ‘How to Apply’ page for information on general eligibility.
How to apply?
Please read the Guidance Notes for this grant scheme carefully. Applications are only considered complete when all supporting documentation has been received.
