Heat Network Efficiency Scheme

Application Components: Expression of Interest; online application form; supporting documentation

Application Platform: Expression of Interest via email followed by application through HNES online portal

Decision Process: Multi-stage assessment including application review, investment committee review, and government approval

Funding Structure: Revenue grants: up to 100% of eligible costs for optimisation studies; Capital grants: up to (but not including) 50% of eligible project costs

important notes: Funding awarded through multiple rounds; projects supporting vulnerable customers are prioritised; monitoring and reporting requirements apply to successful applicants

Ineligible Costs: Replacement of primary plant; certain pipework and internal network changes; metering installations required by regulation

Key Organisational Requirements: 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

Match Funding Requirement: Capital grants fund up to (but not including) 50% of eligible project costs

Objectives: To improve heat network efficiency, reduce carbon emissions, reduce customer detriment, and prepare the sector for regulation