The Government last week published their Warm Homes Plan, confirming that the Heat Network Efficiency Scheme (HNES) will be bolstered with an additional £15 million per year of capital funding out to Financial Year 2029/30.
The funding will go towards improving the efficiency of existing heat networks across England and Wales, improving consumer confidence in heat network technology, and preparing the sector for regulation and technical standards.
Why HNES?
The heat network sector eagerly awaited the publication of the Government’s Warm Homes Plan, and last week’s news provided a strong boost of confidence for the industry.
The plan contained confirmation of not only more funding for HNES, but that the Government plans to more than double the heat demand provided via heat networks in England by 2035. Longer term, the Government expects heat networks to provide a fifth of all heat demand by 2050.
These ambitions are also being backed by additional funding for new low carbon heat networks through the Green Heat Network Fund (GHNF). However, it is paramount that customers connected to existing heat networks are having positive experiences and getting the fairest deals on their heating provision.
Aging heat network infrastructure can result in negative impacts for residents. Heat outages, high costs, and inefficiencies not only impact those already connected to heat networks but also risk negatively impacting consumer willingness to connect to newer projects as the Government expands the sector.
Creating a supportive environment for heat networks must be prioritised in a society where the technology is not as familiar to residents as it is in other regions such as Scandinavia. It is also crucial that consumers have access to positive case studies, where heat networks are the most cost-effective way to provide secure, reliable, and affordable heat to consumers, while cutting energy bills in the process.
HNES is key to making this happen. The scheme works with existing heat network projects, supporting both public and private sector organisations to ensure networks are operating at their optimal efficiency levels without charging customers over the odds for a poor service.
So far, the scheme has done just this. 413 heat networks have received support from the scheme, improving the reliability, efficiency, and cost for over 70,000 residents connected to heat networks in England and Wales. We are delighted to have received additional funding to keep expanding these already impressive numbers, creating low carbon homes and buildings, while making sure no one is left behind along the way.
More positive news for heat networks
The Warm Homes Plan also gave other assurances of the Government’s commitment to heat networks, supporting at least 10 of the biggest English towns and cities to establish their heat network zones. These designate areas where heat networks will provide the lowest cost, low carbon option for decarbonising heating demand at scale.
New protections for homes and businesses on heat networks were also introduced in January for the first time in England, Scotland and Wales. Ofgem will have the power to act if a heat network operator puts up prices unfairly or delivers a poor level of service. The rules mean that heat network customers will finally have similar levels of protections to those with standalone heating systems.
At the same time as the Warm Homes Plan, a consultation was released seeking views on introducing standards under the upcoming Heat Network Technical Assurance Scheme (HNTAS) and how the scheme is likely to operate. While the final details will depend on the outcome of the consultation, the documents give existing heat network operators an understanding of the likely thresholds their heat networks will need to meet to comply with HNTAS.
The HNES team is gearing up ready to support organisations with meeting these new standards. HNES can provide support for both direct improvements to existing heat networks, and for optimisation studies to identify why a heat network may not be operating as expected. The scheme is set to play a large role in helping organisations to meet these new regulations. Additional funding for HNES announced today will go far in helping both private and social landlords to improve the heating provision for residents ahead of the curve.
How to get support for your heat network
If you’re a social or private landlord looking to get support for improving the efficiency of your existing district or communal heat networks, you’ve come to the right place.
If you’re interested in applying, chat to one of our relationship managers or request an application pack by emailing hnes@gemserv.com. We’re on hand to answer any questions you may have about the scheme.
You can also sign up to our mailing list to be the first to hear about updates to the scheme, and to hear about the latest funding round dates.
