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OpenUpdated 9 Jun 2026Charity Community

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