Heat Network Efficiency Scheme (HNES) – Grants

Applications are now open to support performance improvements to existing district or communal heating projects.

The Heat Network Efficiency Scheme (HNES) Demonstrator has been set up to improve performance to existing heat networks.

Heat networks supply heat from a central source to consumers, via a network of underground pipes carrying hot water. They can cover a large area or even an entire city, or be relatively local, supplying a small cluster of buildings. This avoids the need for individual boilers or electric heaters in every building.

The programme has an overall budget of £4.175 million. Applicants can apply for either revenue or capital grant funding. The scheme can provide up to 100% of eligible project costs for revenue grants. In addition, the scheme will fund up to 50% of eligible project costs for capital grants.

The budget for revenue grants is up to £375,000 to carry out Optimisation Studies. These studies will assess heat network projects to identify causes of sub-optimal performance and recommend improvement measures.

The budget for capital grants is up to £3.8 million, to part-fund the installation of eligible improvement measures. There is no upper or lower limit for capital grant funding bids. Funding awards will be made subject to budget availability.

Applications are welcome from public, private and third sector organisations in England and Wales that are responsible for operating or managing existing district heat networks or communal heating systems.

How To Apply

Applications opened on 19 October 2021. The deadline for applications is 31 October 2021 (23:59 BST).

Applicants with any queries regarding the scheme or how to apply are encouraged to email hnes@beis.gov.uk

Prospective applicants should email HNES to request an application form. The completed form should be submitted, with appropriate supporting information, to hnes@beis.gov.uk by the close of the HNES Demonstrator application window.

More details can be accessed here