Wednesday 30 November 2022

Latest round of heat networks funding open to businesses and public sector

The latest round of funding for low and zero carbon heat networks is now open to businesses and public sector organisations across England.

They are invited to bid for grant support for the development of new and existing green heat networks under the fourth round of the government's Green Heat Network Fund (GHNF), a £288 million programme that was initially launched in the spring of 2022.

A heat network is a series of connected pipes that distribute thermal energy to customers, uses low carbon technology and is centrally managed, avoiding the need for households and businesses to reply on individual, energy-intensive heating solutions, such as gas boilers.

The fund, which aims to accelerate the heat network market transition to low carbon heat sources via targeted financial support, is expected to reduce carbon emissions equivalent to taking 5.6 million cars off the road for a year.

It provides support to organisations in the public, private and third sectors, offering commercialisation and construction funding for heat network projects in England.

The government believes heat networks will be “vital to making net zero a reality in the UK” and are a proven, cost-effective way of providing reliable, efficient and low carbon heat at a fair price to consumers, while supporting local regeneration.

The Committee on Climate Change has estimated around 18% of UK heat will need to come from heat networks by 2050 if the UK is to meet its carbon targets cost-effectively.

The GHNF will fund up to but not including 50% of a project's total combined commercialisation and construction costs.

Final applications under the latest round must be submitted by 24th February 2023.