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Heat Network Efficiency Scheme (HNES)

UK Government

The Heat Network Efficiency Scheme (HNES) provides funding to public, private and third sector applicants, to support improvements to existing district heating or communal heating projects in England and Wales that are operating sub-optimally and resulting in poor outcomes for customers and operators. Projects can apply

Funding
See official notice
Deadline
April 1, 2030
Status
OPEN
Category
Small Business & Startups
Opens
April 2, 2025
Directory link check
October 24, 2026

About this opportunity

The Heat Network Efficiency Scheme (HNES) provides funding to public, private and third sector applicants, to support improvements to existing district heating or communal heating projects in England and Wales that are operating sub-optimally and resulting in poor outcomes for customers and operators. Projects can apply to HNES for either revenue or capital grant funding: Revenue grants – grants to fund 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 – grants to part-fund the delivery (installation) of eligible intervention/improvement measures. HNES is a multiple-funding-round grant support programme with funding expected to be deployed across FY23/24 to FY29/30. The final funding drawdown for funded works must be made in advance of the end of the financial year in which the funding has been allocated. HNES will advise projects of the final deadline to submit grant claims in each financial year, typically around early-March.HNES can provide: Up to (but not including) 50% of eligible project costs (incl. non-recoverable VAT if requested in the application form) for capital grant applications. Up to 100% of eligible project costs (incl. non-recoverable VAT if requested in the application form) for revenue (Optimisation Study) grant applications, and within the budget range as defined in this Guidance. HNES funding notification letters will be issued as soon as practicable and subject to all approvals being received. A condition of all funding awards is that applicants/projects will be required to fulfil monthly/quarterly Monitoring and Reporting requirements. This is to enable monitoring and evaluation of the benefits and impacts of HNES, as well as to understand how projects are progressing and identify any risks or issues. Successful applicants will also be required to give consent to the Department for Energy Security and Net Zero to publicise the grant value and details of their funded activities. This includes the development of a case study upon completion of the project.

Eligibility recorded

HNES is open to applicants who are responsible for operating or managing existing district heat networks or communal heating systems in England and Wales. This includes: Public sector organisations including NHS Trusts, 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. Successful applicants will be the recipients of grant funding and will be responsible for ensuring that grant funds are deployed in accordance with funding award, i.e. procuring or mobilising third-parties to deliver the funded activities. Applicants must be legal entities, with authority to sign-off investment decisions for the heat network they are responsible for and instruct delivery of funded works. Consultants cannot submit applications on behalf of their clients, but they can support in the development of the application form and supporting evidence. Individuals cannot apply to HNES. Potential applicants that are unsure whether their projects meet the HNES eligibility criteria should contact hnes@talan.com . Grant application assessment and award will prioritise projects which: Support a higher proportion of residential “customers in need” (as aligned with HNES Objective 2). For the purposes of HNES, this is defined as: “Dwellings supplied heat/energy by a heat network, in which a resident or residents are considered financially vulnerable and will therefore benefit significantly from reduced costs for heating or service improvements through HNES support. This includes any of the following categories (or equivalent) of status or accommodation type: social housing; low-income housing; customers in fuel poverty; extra care housing; low-income care homes and supported housing ”. Where applications do not include support for residential “customers in need”, or where this support (alongside evidence of how customer detriment will be improved) is not satisfactorily addressed, HNES reserves the right to reject the application. Deliver benefits which can demonstrate improvements to networks where baseline performance metrics are considered particularly poor, and/or can deliver a significant performance improvement over the baseline performance (as aligned with HNES Objective 1). Networks that do not support residential "customers in need”, including non-residential heat networks such as hospital or university campuses or those supplying commercial buildings, are still able to apply. However, applicants with a high proportion of residential “customers in need” will be prioritised. HNES will fund capital measures across the network categories outlines below, where the measures directly contribute to achieving the HNES objectives: Energy centre / plant room Primary / secondary distribution network Tertiary network Works that are not eligible include, but are not limited to, the replacement of primary plant; changes to or replacement of pipework or heat emitters within the tertiary network; and installation of meters and metering equipment where this is a requirement under the Heat Networks Metering and Billing Regulations.

Recorded geography: United Kingdom

Applicant types

Focus areas

Small Business & Startups

Directory verification note

Automatically synchronized from UK Find a Grant. Source identifier: heat-network-efficiency-scheme-hnes-1. Confirm details on the official page.

Recorded notice evidence

What to verify for Heat Network Efficiency Scheme (HNES)

Applicant evidence

  • Applicant type: Small businesses
  • Applicant type: Individuals
  • Applicant type: Universities and higher-education institutions
  • Geography: United Kingdom

Opportunity boundaries

  • Recorded funding: See official notice
  • Recorded deadline: April 1, 2030; confirm the closing time.
  • Recorded focus: Small Business & Startups
Fields to verify directly: funding amount. A missing directory value does not remove a restriction.
Connect every eligibility claim, registration, attachment and deadline to the current notice. Open the specific official notice →

Application checklist

How to evaluate and apply for Heat Network Efficiency Scheme (HNES)

Use this record for discovery, then connect every requirement and date to the current official notice and its amendments.

Recorded applicant fit

Small businesses, Individuals, Universities and higher-education institutions

Recorded geography

United Kingdom

Recorded deadline

April 1, 2030 — confirm the closing time.

Eligibility summary: HNES is open to applicants who are responsible for operating or managing existing district heat networks or communal heating systems in England and Wales. This includes: Public sector organisations including NHS Trusts, 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. Successful applicants will be the recipients of grant funding and will be responsible for ensuring that grant funds are deployed in accordance with funding award, i.e. procuring or mobilising third-parties to deliver the funded activities. Applicants must be legal entities, with authority to sign-off investment decisions for the heat network they are responsible for and instruct delivery of funded works. Consultants cannot submit applications on behalf of their clients, but they can support in the development of the application form and supporting evidence. Individuals cannot apply to HNES. Potential applicants that are unsure whether their projects meet the HNES eligibility criteria should contact hnes@talan.com . Grant application assessment and award will prioritise projects which: Support a higher proportion of residential “customers in need” (as aligned with HNES Objective 2). For the purposes of HNES, this is defined as: “Dwellings supplied heat/energy by a heat network, in which a resident or residents are considered financially vulnerable and will therefore benefit significantly from reduced costs for heating or service improvements through HNES support. This includes any of the following categories (or equivalent) of status or accommodation type: social housing; low-income housing; customers in fuel poverty; extra care housing; low-income care homes and supported housing ”. Where applications do not include support for residential “customers in need”, or where this support (alongside evidence of how customer detriment will be improved) is not satisfactorily addressed, HNES reserves the right to reject the application. Deliver benefits which can demonstrate improvements to networks where baseline performance metrics are considered particularly poor, and/or can deliver a significant performance improvement over the baseline performance (as aligned with HNES Objective 1). Networks that do not support residential "customers in need”, including non-residential heat networks such as hospital or university campuses or those supplying commercial buildings, are still able to apply. However, applicants with a high proportion of residential “customers in need” will be prioritised. HNES will fund capital measures across the network categories outlines below, where the measures directly contribute to achieving the HNES objectives: Energy centre / plant room Primary / secondary distribution network Tertiary network Works that are not eligible include, but are not limited to, the replacement of primary plant; changes to or replacement of pipework or heat emitters within the tertiary network; and installation of meters and metering equipment where this is a requirement under the Heat Networks Metering and Billing Regulations.

Recorded focus: Small Business & Startups

1Confirm fitMatch entity type, location, project scope, exclusions and cost share.
2Read the noticeCollect amendments, budget rules, attachments and portal instructions.
3Plan timingRecord the funder’s time zone, registrations and internal review dates.
4Submit officiallyUse the funder’s route and save the submission confirmation.

Official sources

Directory link check: October 24, 2026. Always recheck the live notice before relying on it.

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