Is HNES open to homeowners?

No. Individuals cannot apply. HNES is for organisations that operate or manage an existing heat network in England and Wales.

How much of my project will HNES fund?

Up to 50% of eligible capital costs (no lower limit; up to £10m per application). Revenue/Optimisation Study grants typically fund £15,000–£24,000.

Heat Network Efficiency Scheme (HNES)

If you operate or manage a district heating or communal heating system in England and Wales that is performing poorly, the Heat Network Efficiency Scheme (HNES) can fund the work to put it right. Launched in February 2023, HNES is a £107 million grant programme running to 2029/30, prioritising networks serving residents in fuel poverty or social/low-income housing. This guide covers who can apply, what it funds, the current round dates, and how the application works.

Last reviewed: August 2026Sources: GOV.UK — Heat Network Efficiency Scheme · HNES applicant guidance (DESNZ) · hnes.uk

What HNES funds

HNES offers two grant types. Revenue grants fund an 'Optimisation Study' — third-party support to diagnose why a network underperforms and recommend costed fixes. These typically fund £15,000–£24,000 per project. Capital grants part-fund the delivery (installation) of eligible improvement measures, covering up to 50% of eligible costs (up to, but not including, £10 million per application; bids over £1m trigger extra Subsidy Control checks).

Who can apply

Applicants must be legal entities responsible for operating or managing an existing district or communal heat network in England and Wales: public bodies (NHS trusts, universities, councils), registered companies, and registered charities/community groups. Consultants can support an application but cannot apply on a client's behalf, and individuals cannot apply. Networks serving a higher proportion of residential 'customers in need' (social housing, low-income, fuel-poor, extra-care and supported housing) are prioritised.

Round dates (2026–27)

Round 12 closed on 22 May 2026. Round 13 is expected to open on 17 August 2026 and close on 9 October 2026. Round 14 is expected to open in December 2026 and close in February 2027. All dates are subject to budget availability. DESNZ runs an application seminar for each round (Round 13's is on 9 September 2026).

How to apply

Register an Expression of Interest (EoI) by emailing [email protected] with the project information set out in the guidance. Once reviewed, you get access to the HNES online portal to complete a capital or revenue grant application. Read the 'Guidance for Applicants' and attend the application seminar before applying. Capital grant funding must be drawn down by the end of February each financial year.

Why it matters for residents

Poorly performing heat networks hit residents with high, often opaque charges. HNES exists to reduce that detriment — part of wider preparation for heat-network regulation and technical standards. If you live on a network with chronic problems, raise it with your managing agent; they may be eligible for HNES support.

FAQs

Is HNES open to homeowners?: No. Individuals cannot apply. HNES is for organisations that operate or manage an existing heat network in England and Wales.
When does HNES Round 13 open?: Round 13 is expected to open on 17 August 2026 and close on 9 October 2026 (subject to budget).
How much of my project will HNES fund?: Up to 50% of eligible capital costs (no lower limit; up to £10m per application). Revenue/Optimisation Study grants typically fund £15,000–£24,000.