DE
Department for Energy Security and Net Zero

Heat Network Efficiency Scheme (HNES)

Funding to improve underperforming district and communal heat networks.

OpenDepartment for Energy Security and Net ZeroUnited Kingdom

Heat Network Efficiency Scheme (HNES) is a grant programme for improvements to existing district heating or communal heating projects operating sub-optimally and producing poor outcomes for customers and operators.

It supports public, private and third sector applicants responsible for operating or managing an existing district heat network or communal heating system. Applicants must be legal ent…

HNES supports improvements to existing district heating or communal heating projects that are operating sub-optimally and resulting in poor outcomes for customers and operators. Revenue funding supports Optimisation Studies, while capital funding supports eligible intervention or improvement measures that directly contribute to the HNES objectives. Capital measures may cover the energy centre or plant room, primary or secondary distribution network, and tertiary network. Works not eligible include, but are not limited to, 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 required under the Heat Networks Metering and Billing Regulations.

CycleiHow often this grant runs — e.g. annually, on a rolling basis, or a one-off call.Rolling
Next deadlineiThe next date applications are due. Rolling means you can apply any time.Rolling
Decision timeiTypical time from the deadline to the funder's decision.—
Project durationiHow long the funded work is expected to run.—
Award typeiThe form of funding — grant, equity, loan, tax credit, etc.Grant
Match fundingiThe share of project costs you must cover yourself. 0% = fully funded.—
Funding pooliThe total budget available across all awards in this round.£75M

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Last verified: 27 Aug 2026Funder reference: heat-network-efficiency-scheme-hnes-1Source: www.find-government-grants.service.gov.uk