The Heat Network Efficiency Scheme (HNES) provides funding to public, private and third sector applicants in England and Wales to support improvements to existing district heating or communal heating projects that are operating sub-optimally and resulting in poor outcomes for customers and operators.
It is a £77 million grant support programme spanning years 2023-2024 to 2027-2028.
The HNES is open to organisations in the public, private or third sectors in England and Wales. It can provide:
- Up to (but not including) 50% of eligible project costs (incl. non-recoverable VAT
if requested in the application form) for capital grant applications. - Up to 100% of eligible project costs (incl. non-recoverable VAT if requested in the
application form) for revenue (Optimisation Study) grant applications, and within
the budget range as defined in this Guidance.
Projects can apply to HNES for either revenue grant funding or capital grant funding: