Heat Network Efficiency Scheme (HNES)
Department for Energy Security and Net Zero (DESNZ) · England and Wales
The Heat Network Efficiency Scheme provides funding to improve the performance of existing district and communal heating systems that are operating inefficiently and causing poor outcomes for customers and operators.
Summary
Deadline
30 Mar 2028
Complexity
Medium
Time to apply
20-60 hours
Updated
9 Jun 2026
The Heat Network Efficiency Scheme provides funding to improve the performance of existing district and communal heating systems that are operating inefficiently and causing poor outcomes for customers and operators.
Eligibility
Applicant types
Charity Community
Business size
SME
Industries
Energy, utilities, heat networks
Match funding
Required
Requirements
Apply via Expression of Interest to hnes@talan.com; funding rounds close periodically (Round 13 expected Aug–Oct 2026).
Eligible applicants
Public, private, and third sector organisations responsible for operating or managing existing heat networks
Funding and scope
Benefit amount
Amount needs verification
Total fund available
Not specified
Funding intensity
Up to 50% for capital; up to 100% for revenue/Optimisation Study grants.
Payment type
Reimbursement
Eligible scope
To improve heat network efficiency, reduce carbon emissions, reduce customer detriment, and prepare the sector for regulation
Eligible expenses
Not specified
Ineligible costs
- Replacement of primary plant
- certain pipework and internal network changes
- metering installations required by regulation
Application and risks
Application platform
Expression of Interest via email followed by application through HNES online portal
Competitiveness
Competitive Selection
Decision timeline
Not specified
Assessment process
Multi-stage assessment including application review, investment committee review, and government approval
Application sections
Not specified
Application components
- Expression of Interest
- online application form
- supporting documentation
Timeline and partners
Opening date
1 Apr 2025
Project duration
Not specified
Project start
Not specified
Project end
Not specified
Co-funders
Not specified
Collaboration rules
- Third-party contractors may deliver funded works but applicant remains grant recipient.
Consortium requirements
- Single applicant per heat network; consultants cannot apply on behalf of clients.
Additional guidance
[{"label":"Key Organisational Requirements","value":"Must be responsible for an existing operational heat network; must be a legal entity; must have authority to make investment decisions; individuals and consultants cannot apply"},{"label":"Funding Structure","value":"Revenue grants: up to 100% of eligible costs for optimisation studies; Capital grants: up to (but not including) 50% of eligible project costs"},{"label":"important notes","value":"Funding awarded through multiple rounds; projects supporting vulnerable customers are prioritised; monitoring and reporting requirements apply to successful applicants"}]
Quick facts
- Status
- Open
- Deadline
- 30 Mar 2028
- Funding amount
- Amount needs verification
- Funding band
- Verification Required
- Funding type
- Grant funding (revenue and capital grants)
- Payment type
- Reimbursement
- Audience
- Charity Community
- Industry
- Energy, utilities, heat networks
- Last updated
- 9 Jun 2026
- Published
- 1 Apr 2025