Public and private sector housing providers receive a share of £13.3m heat networks investment

Latest News Wed, Sep 23, 2026 5:48 AM

Over 2,300 homes across England and Wales will see a more efficient, reliable, and cost-effective central heating and hot water system thanks in part to capital grant funding from HNES for various heat network efficiency improvements.

From an independent living scheme in Manchester, to a social housing block in Wales, residents battling with an inefficient and unreliable heat network are set to see major improvements with the help of efficiency works supported through the scheme.

Separately, HNES is contributing £1.15 million to organisations for optimisation studies aiming to investigate potential heat network inefficiencies affecting 7,000 residents. These studies will help organisations better understand the performance of their networks, identify areas for improvement and develop targeted solutions to address underlying issues in the most cost-effective way.

Image: Grosvenor Riverside

With the help of HNES-funded capital improvements, housing providers are targeting annual carbon emissions savings of over 29,000 tonnes per year, or around 251 flights between London and New York worth of CO2.

Martin McCluskey, Minister for Local Energy and Jobs, said: “Clean power and clean heat benefits communities across our country. Building the infrastructure to deliver it is reindustrialising the UK and rolling out cutting-edge energy technology so families can benefit from lower bills, good jobs and energy security.

“And for those already using heat networks, we are upgrading inefficient systems to make sure people get the high-quality, low-cost, reliable heating they deserve.”

Louise Singleton, HNES Programme Manager, said: "With each HNES funding round comes more cost-effective heating, better reliability, and improved comfort to homes across England and Wales.

“As we begin to enter the colder months, we're once again helping to create more positive experiences for residents connected to a heat network, mitigating the impact caused by the cost-of-living crisis, and reducing carbon emissions from domestic buildings.”

Capital grant funding will go directly towards capital works to improve the efficiency of existing heat networks. In Round 11, 10 organisations will receive a share of over £12.2 million worth of capital support, benefiting over 2,300 homes who will receive more reliable and efficient heating.

Revenue grant funding will help heat network owners/operators to undertake optimisation studies to review the performance of their heat networks and identify areas for improvement. Applicants may also choose to subsequently apply for capital grant funding to enact the recommendations provided by the study. In Round 11, a share of £1.15 million has been granted to 28 organisations, benefiting heat networks serving almost 7,000 residents.


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