Every few months, we publish a list of projects that have been successful in their bid for funding from the Heat Network Efficiency Scheme (HNES) in the latest round. Most recently, we awarded £15.6 million in Round 10 to 94 district and communal heating schemes, benefitting 10,400 residents. But what does this mean in practice, and what benefits will these 10,400 residents realise?
The stats
HNES focuses on providing support to those most in need, making sure that residents connected to a heat network across England and Wales are getting the best possible service, reliability, and cost-effectiveness.
Three years into the scheme, we’ve already supported almost 500 heat networks with a share of over £81 million of grant funding. These projects will aim to either directly improve, or investigate how to improve, the heating and hot water provision for over 80,400 residents across Rounds 1-10. For carbon emissions, the impact is stark. Over the next 40 years, HNES has so far supported projects that expect to reduce building level emissions by almost 359,000 tonnes. To put that into perspective, this amount of carbon dioxide would be the equivalent of grounding 3,111 journeys on an Airbus A319 from London to New York every year for 40 years.
Now, as the scheme matures, we’re starting to see tangible benefits emerge from our funded projects. Alongside lower carbon emissions, residents are beginning to realise the benefits of higher efficiency levels and lower fuel consumption. For the Vega Building in Brighton & Hove, HNES funded improvements reduced their gas usage by 50%, alongside a 50% increase in network efficiency. Furthermore, residents in the 13-year-old development who had previously raised complaints about their heat tariffs, are now reporting reductions in the cost of their heating and hot water of around £438 per year.
What else does this mean for residents?
HNES is designed to improve the efficiency of existing district and communal heat networks. Some existing infrastructure is old, outdated, and therefore less efficient than new heat networks built to today’s standards. E.ON’s Citigen heat network, for example, was originally built in 1993 and is known to be one of the oldest heat networks within the City of London square mile. In Camden and Worthing, we have supported efficiency improvements to heat networks that were built in the 1970s and are therefore over 50 years old.
HNES also has wider implications for the future of the UK district heating sector, particularly for those living in a heat network zone, who will eventually be required to connect to a heat network.
HNES is as much about increasing consumer confidence in heat network technology for the future as it is about improving older infrastructure. Research from Heat Trust suggests that public awareness of heat networks is low, with around 47% of those surveyed in 2024 having never heard of them. The Government’s own data highlights that 505,000 consumers are connected to a heat network. HNES support will ensure that these customers have positive experiences with the technology, and new consumers feel more comfortable connecting to one, despite public unfamiliarity with the heating method.
While HNES has a big focus on carbon emissions, energy efficiency, and ultimately more cost-effective heating for residents, there are also several other benefits that HNES funded improvements can provide. For example, installations such as new or improved Building Management Systems (BMS), heat meters, pressure sensors, thermostats, and Heat Interface Units (HIUs) can provide improved data and visibility across the network.
This enhanced information enables heat network owners and operators to better understand individual energy consumption, more accurately bill residents, and provide better oversight over the health and operational performance of the network. It can also help support the provision of long-term, evidence-based optimisation and investment planning, helping to troubleshoot future issues and pinpoint inefficiencies more accurately.
For residents, new, consumer-friendly HIUs installed in each property provide each resident with complete control over their own system, improving general comfort. The scheme will also fund the installation of new radiator valves, thermostatic controls, and other demand-side measures that will help residents to better acquaint themselves with their heating and hot water system.
At the University of Liverpool, improvements to their heat network, which serves 30,000 students and 7,800 staff members, has also made it easier for the University to share data with academics and students, helping them to better understand how the network works, and increase consumer awareness.
In addition, HNES can help heat network owners and operators comply with new regulations, as they work towards creating heat networks that deliver better outcomes for consumers. You can find out more about new heat network regulations, and the implications for past, present and future HNES applicants, in our blog.
What’s next for HNES
We are continuing to deliver vital HNES funding to existing district and communal heating schemes, and we’re looking forward to sharing more impressive insights as our funded projects implement their improvement measures. The funding aims to reduce carbon emissions, improve consumer confidence in heat network technology, and prepare the market for new sector regulations and technical standards.
If you own or operate a poorly performing heat network and wish to learn more about HNES support, find out how to apply.