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Heat Network Efficiency Scheme (HNES)

The Government's Heat Network Efficiency Scheme (HNES) supports performance improvements.

About the Heat Network Efficiency Scheme (HNES)

The Government’s Heat Network Efficiency Scheme (HNES) is a £77m grant support programme that opened to applicants in February 2023.

It will provide funding to public, private and third sector applicants in England and Wales, to support improvements to existing district heating or communal heating projects for customers and operators. This follows on from the HNES Demonstrator which ran from October 2021 to March 2022.

Gemserv has been appointed Delivery Partner supported by Ramboll, Lux Nova, and Turner and Townsend to deliver the scheme on behalf of the Department for Energy Security and Net Zero.

The aim of the HNES is to improve heat network performance in existing/operational projects where customers and/or operators are experiencing sub-optimal outcomes. In particular, the HNES will focus on addressing customer detriment as a way of supporting heat network consumers impacted by the cost-of-living crisis and the cost-of-energy crisis, with focus on where customer need is greatest.  

The HNES objectives are to:

  • Reduce carbon emissions by making heat networks more efficient.  
  • Reduce customer detriment to improve consumer confidence.  
  • Help prepare the heat network market for sector regulation and technical standards.  

Projects can apply to the HNES for either revenue grant funding or capital grant funding.

Contact the HNES team to sign up for updates
  • Revenue Grants

    HNES budget up to £2m across FY23/24 and FY24/25

    Grants to fund 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 up to FY27/28 

    Grants to part-fund the delivery of eligible improvement measures.

How to apply

Contact the HNES team to request the application pack | View the application guidance FAQs

Read the application guidance for more information on how to prepare your application. The guidance provides information on:

  • The application process
  • Eligibility criteria
  • How applications will be scored and assessed
  • The monitoring and reporting obligations for successful applicants

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£13.9 million awarded in the first HNES funding round

£13.9 million of capital and revenue grant funding has been awarded to improve the efficiency of existing district and communal heat networks.

Find out more

Over £3 million awarded to upgrade heat networks across Britain

Millions of pounds of investment is being provided to social housing, local authorities, and private housing organisations to improve and optimise heat networks across the country, helping residents to keep warm at lower prices.

Find out more

Heat networks across England and Wales receive a share of over £8 million for modernisations and improvements

Funding from Round 3 is being awarded to a wide range of organisations.

Find out more
Close up of large silver metal pipework - HNES Consultant Seminar

Heat networks in England and Wales receive £3.5 million for efficiency improvements, benefitting over 5,000 residents

Funding from Round 4 is being awarded to 20 local authorities, housing associations, NHS trusts, universities and private sector organisations

Find out more

The Heat Network Efficiency Scheme (HNES) is delivered by the Department for Energy Security and Net Zero. Gemserv has been appointed Delivery Partner supported by Ramboll, Lux Nova, and Turner and Townsend.

Meet the Team

Get in touch!

Should you have any enquiries relating to the Heat Network Efficiency Scheme then please contact a member of the team at HNES@gemserv.com.

If you would like to sign up to our mailing list to receive email communications regarding Heat Network Efficiency Scheme (HNES), Green Heat Network Fund, Heat Networks Investment Project and BHIVE then please do complete this short form.

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