Heat network operators – such as universities and NHS trusts – can bid for funding from the Heat Network Efficiency Scheme (HNES) from today.
The money will be used to upgrade old equipment with energy-efficient alternatives such as replacement pumps, pipe insulation and underfloor heating controls. Systems to check networks are performing correctly will also be installed.
HNES will deliver improvements to existing heat networks and will help prevent against breakdowns where customers are without heat and hot water and reduce instances of homes and corridors becoming too hot through heat escaping from inefficient piping.
Business and Energy Minister Lord Callanan said:
This £32million boost will provide thousands of homes in England and Wales with cheaper, greener energy through upgrades these heat networks desperately need.
We’re investing in new heat networks, but it’s just as important to maintain and refurbish existing systems to ensure all customers can benefit from reduced energy use and household bills.
Heat network operators can request an application form from delivery partner Gemserv.
Louise Singleton, Principal Consultant at Gemserv, said:
Owners and operators of heat networks in England and Wales face a number of barriers to improving the efficiency of their schemes and as a result some customers are not getting the experience we would expect. The launch of the Heat Network Efficiency Scheme today is really exciting, and we hope it will increase consumer trust and drive-up standards across the sector.
We are delighted to be supporting applicants on their HNES journey alongside our partners Ramboll, Turner and Townsend and Lux Nova. We are looking forward to meeting with applicants and seeing the projects in the pipeline come to life.
HNES follows and builds on the HNES Demonstrator, a one-year project which ran until March 2022. As well as delivering improvements to 37 existing heat networks, HNES Demonstrator supported 73 projects to identify cost-effective improvement measures.
Stephen Knight, Director at Heat Trust, the national consumer protection scheme for heat network customers, said:
At Heat Trust we sadly hear of far too many examples of inefficient and poorly performing heat networks. These can result in much higher energy costs for residents, overheating corridors and frequent breakdowns.
The rise in gas prices over the last year has meant that inefficient heat networks are now expensive for residents. The Heat Network Efficiency Scheme is therefore an important step in the right direction, and I would urge all those responsible for running heat networks to consider bidding for funding.
To further improve the operation of existing heat networks, a series of guidance videos have also been published that set out the practical steps that operators of heat networks can take to improve the performance of their systems.
HNES is open to applicants in England and Wales that are responsible for operating or managing existing district heat networks or communal heating systems.