Announced on 26 March, this latest Round (7) is the biggest so far of the UK government’s Heat Network Efficiency Scheme (HNES), and will see almost £20 million allocated to help 63 heat networks. Funding is intended to unlock efficiency improvements, greater reliability, and lower costs for low-income households, colleges, universities, and vital NHS facilities.
“Support provided in Round 7 of HNES will benefit almost 8,000 residents by enabling warmer, reliable and more cost-effective heating provision,” said a statement from the scheme. Capital funding awarded in this round will also help to reduce carbon emissions from space heating by the equivalent of 829 one-way flights from London to New York every year.
“We are particularly encouraged by the notable increase in organisations applying for capital grant funding to implement heat network improvements recommended by an optimisation study also previously supported by HNES. This shows that support from the scheme is enabling project owners to both identify and implement improvements to their heat networks, as HNES supports them from initial study through to final works.”
Notting Hill Genesis is said to provide an example of this process in action, receiving capital support in Round 7 to implement improvements to the Baths Court heat network. Support in this round will go towards tackling issues with high energy consumption, and frequent heat outages. As a result, 32 residents will benefit from more reliable and efficient heating and hot water.
Louise Singleton, HNES Programme Manager at Gemserv, said:
“Round 7 marks the largest funding package awarded since the introduction of the scheme in 2023. We are delighted with the level of interest that HNES is receiving, and it is clear to see why.
“We are beginning to see the fruits of optimisation studies funded in earlier rounds, as applicants return to the scheme for capital funding to help implement their study’s recommendations.
“It is also clear that HNES can help unlock significant benefits for both people and the environment. So far, HNES has helped over 51,000 residents, 300 heat networks, and will save 200,000 tonnes of carbon over the next 40 years. As 2025 begins, we are looking forward to another year of improving outcomes for customers and operators.”
Capital grant funding
Capital grant funding will go directly towards efficiency improvements to existing heat networks. In Round 7, 22 heat networks will receive a share of £18.5 million. As a result of direct capital works carried out with the support of HNES, 5,111 residents will benefit from more reliable and efficient heating.
Local authorities
Wolverhampton City Council
The Heath Town heat network will receive £8 million to improve heating provision for over 1,000 residents on the estate. Funding will go towards efficiency improvements such as upgrading the network’s control systems, replacing pumps and pipework, and installing new heat interface units (HIUs) for residents.
London Borough of Camden
Residents in Belsize Court will benefit from a more efficient heat network with £278,000 worth of capital grant support. The 50-year-old heat network is operating at suboptimal levels, and support will go towards upgrading various aspects of the network, including the HIUs, thermostats, and plant room infrastructure. Support will also enable the council to fix an issue that means tenants currently only receive lukewarm water.
Portsmouth City Council
Portsmouth City Council will receive £4.5 million worth of HNES support to improve the Charles Dickens heat network, serving over 500 residents. Funding will go towards replacing HIUs, pipework, insulation and plant room equipment. The support will upgrade ageing infrastructure, resulting in a more efficient heating network and lower energy bills for residents.
Manchester City Council
Serving 288 residents, Manchester City Council’s Newton Heath heat network will receive £606,000 worth of capital support for efficiency improvements to rectify high return temperatures and inefficient control systems. Following the recommendations from a HNES funded optimisation study, the funding will upgrade existing infrastructure and install Thermostatic Radiator Valves (TRVs) in each property.
London Borough of Islington
The London Borough of Islington will receive £48,600 worth of support for the Hathersage Court heat network, serving 69 residents. Funding will go towards installing improved control and metering systems, upgrading insulation and improving the efficiency of other existing network infrastructure.
Housing associations and social housing providers
Notting Hill Genesis
Serving 32 supported housing residents, Notting Hill Genesis will receive over £534,000 to undergo capital works to their Baths Court heat network. Baths Court received HNES funding in Round 3 to identify issues that were causing high energy consumption, frequent heating outages, and overheating. Capital funding in this round will enable NHG to action the suggestions made in their optimisation study. This will include transforming their heat network from a 4-pipe to a 2-pipe system, installing a new Building Management System (BMS), and other plant room upgrades.
Solihull Community Housing
In the West Midlands, Solihull Community Housing will receive over £1.6 million for three heat networks serving eight high rise buildings. Funding will go towards several heat network improvements, including pipework modification, pump and boiler repairs, and the installation of a BMS. Improvements made will create more efficient and reliable heating for 570 residents. This will also help to reduce running costs, improve water quality, and reduce outages and leaks.
Great Places Housing Association
Great Places Housing Group has been awarded over £358,400 for capital improvements to its Hutton Lodge heat network, benefitting 28 residents. The organisation was awarded revenue grant funding in Round 1 of HNES due to Hutton Lodge’s heating system overheating in the summer and underheating in the winter, poor reliability, and high maintenance costs. The funding provided in Round 7 to implement suggested improvements is yet another example of how optimisation studies supported through HNES are being used to inform capital applications.
With support from HNES funding, this project will involve replacing the network with a new low temperature system, installing HIUs and heat meters, and other infrastructure improvements.
Octavia Housing
Three heat networks serving Bridgewater House, Jane Lidderdale House, and Park Lodge House will be awarded a total of almost £67,000 in Round 7 to support with capital improvements. A total of 85 residents will benefit from improvements to their heat networks that were identified through HNES funded optimisation studies, including upgrading and insulating pipework, reconfiguring the BMS, replacing valves, and installing heat meters and sensors for better system control.
The Guinness Partnership
Serving 36 residents, the Guinness Partnership will be awarded £451,300 for capital improvements to the Apna Ghar Court heat network. The project will involve implementing recommendations from a previously funded HNES optimisation study, including replacing plant room equipment, upgrading insulation, retrofitting HIUs, and installing new TRVs on each radiator.
Private sector
New Islington Utilities Company Limited
The Chips and Lakeshore residential buildings in Manchester and Bristol respectively, will receive over £1 million for their heat networks, which are currently serving 415 dwellings. HNES funding will help to significantly increase both networks’ efficiency levels by part funding the replacement of HIUs, the installation of TRVs, improving pipework insulation, and other infrastructure improvements and upgrades. This funding implements the recommendations from the optimisation studies undertaken during the HNES Demonstrator.
Rendall and Rittner
In London, the Fulham Reach heat network, managed by Rendall & Rittner, has been awarded £175,600 for efficiency improvements to a heat network on behalf of 648 dwellings in the development. Support from HNES will help to unlock capital works such as pipework reconfiguration, insulation improvements, BMS upgrades, and better metering systems that will help to quantify and monitor heat losses throughout the network. These improvements were identified through an optimisation study funded by HNES in Round 1.
FirstPort Service Limited
FirstPort Service Limited has been awarded £489,900 to support the improved efficiency of the heat network at the Capital East Phase 2 Apartments, serving 388 residents. The capital grant funding will support reducing heat losses, frequent outages and high return temperatures by replacing the majority of the network’s HIUs whilst optimising the system’s BMS to achieve weather compensated flow temperatures.
Warwick Gates LLP
The Austin Heath heat network, serving 48 residents, will receive £140,300 from HNES to help implement network efficiency improvements. Drawing on measures identified as part of their Demonstrator-funded optimisation study, the project involves replacing the existing HIUs and other infrastructure, as well as boiler improvements that will aim to significantly reduce heat losses and lower the flow and return temperatures of the network.
PP ESCO (Clapham Park) Limited
The Clapham Park district heat network, serving 732 residents in Clapham, London, will receive £133,600 from HNES. The capital grant funding will go towards replacing control valves, optimising the BMS and control systems, and replacing and insulating network pipework. Tertiary TRVs will also be installed within one of the residential blocks on the network. These works aim to reduce network heat losses and increase system efficiency.
Revenue grant funding
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 this round, a total of £852,180 has been granted for 41 studies benefiting heat networks serving 2,859 residents.
Organisations receiving revenue grant funding:
Housing associations and social housing providers
Abri Group Limited, for the Melrose Court heat network, serving 63 flats.
Bernicia Homes Limited, for the Roseborough and Sleekburn House heat networks, serving 78 residents.
CESSA HA Limited, for the CESSAC House heat network in Gosport, serving 56 residents.
Clarion Housing Group, for the St Stephens Road Boiler House and Wilmer House heat networks, serving 364 residents.
Eden Housing Association Limited, for the Heysham Gardens heat network, serving 40 residents.
Fairoak Housing Association, for the Greenside heat network, serving 7 residents.
Great Places Housing Association, for the Docherty House heat network, serving 14 residents.
Industrial Dwellings Society, for the Ajex House and 145-164 Stepney Green Court heat networks, serving 61 residents.
Muircroft Housing Association, for the Muir House heat network, serving 51 residents in independent living (sheltered) housing.
Places for People Homes Limited, for the Waterloo Street (AKA Clayton Street West) heat network, serving 243 residents.
POBL Homes and Communities, for the Plas Y Mor, Cwm Aur, and Mariners Quay heat networks, serving 179 residents.
SALIX Homes, for the Sycamore, Black Friar Court, and Broomedge heat networks, serving 213 residents.
South Yorkshire Housing Association Limited, for the Oak Close and Westmeads heat networks, serving 66 residents.
The Havebury Housing Partnership, for the James School Place and Beetons Lodge heat networks, serving 85 residents.
Thrive Homes Ltd, for the MoneyHill Court and Hallowes Court heat networks, serving 82 residents.
Tower Hamlets Community Housing, for the Frank Whipple Estate heat network, serving 60 residents.
Your Housing Group Limited, for the May Place and Forest Brook House heat networks, serving 75 residents.
Local authorities
Oxford City Council, for the Atkyns Court heat network, serving 24 flats.
Haringey Council, for the Larkspur Close and William Atkinson House heat networks, serving 76 residents.
Health and education sector
Generations Multi Academy Trust, for the Goffs – Churchgate Academy heat network.
Hywel Dda University Health Board, for the Withybush Hospital heat network.
Liverpool University Hospitals NHS Foundation Trust, for the Royal Liverpool Hospital heat network.
Oxford Brookes University, for the John Henry Brookes Energy Centre heat network.
University Hospitals Plymouth NHS Trust, for the Derriford Hospital heat network.
Private sector
Crookham Park Management Company Limited, for the Crookham Park heat network, serving 60 residents.
Gateshead Energy Company, for the Gateshead District Energy Scheme, serving 25 buildings and 389 residents.
Russell Court (Bloomsbury) Management Ltd, for the Russell Court heat network, serving 502 residents.
Welby UK Ltd, for the Finchley Road heat network, serving 16 residents.
Charity
The Salvation Army Training Centre at the William Booth College heat network, serving 43 residents.
