Heat Network Efficiency Scheme (HNES)
Department for Energy Security and Net ZeroEngland, Wales£5k – £10m
Who can apply
HNES is open to applicants who are responsible for operating or managing existing district heat networks or communal heating systems in England and Wales. This includes: Public sector organisations including NHS Trusts, Universities and Other Government Departments. Private sector organisations that are registered companies and submit annual accounts. Third sector organisations such as registered charities, community investment companies and other such organisations that are officially registered and submit annual accounts. Successful applicants will be the recipients of grant funding and will be responsible for ensuring that grant funds are deployed in accordance with funding award, i.e. procuring or mobilising third-parties to deliver the funded activities. Applicants must be legal entities, with authority to sign-off investment decisions for the heat network they are responsible for and instruct delivery of funded works. Consultants cannot submit applications on behalf of their clients, but they can support in the development of the application form and supporting evidence. Individuals cannot apply to HNES. Potential applicants that are unsure whether their projects meet the…
What it funds
The Heat Network Efficiency Scheme (HNES) provides funding to public, private and third sector applicants, to support improvements to existing district heating or communal heating projects in England and Wales that are operating sub-optimally and resulting in poor outcomes for customers and operators.Projects can apply to HNES for either revenue or capital grant funding: Revenue grants – grants to fund procurement or mobilisation of external third-party support to carry out Optimisation…
How to apply
Talan has been appointed Delivery Partner to deliver the scheme on behalf of the Department for Energy Security and Net Zero. Go to their website for more information: HNES | Heat Network Efficiency Scheme . You must register an Expression of Interest by contacting hnes@talan.com to apply. In this email please include the information specified on page 29 in the Guidance for applicants document. The HNES application guidance and relevant documentation can be found on the gov.uk website: https://www.gov.uk/government/publications/heat-network-efficiency-scheme-hnes . Once your Expression of Interest has been reviewed, you will be given access to the HNES online portal. Here, you must complete an online application form for either a capital grant funding application or a revenue grant funding application. Please note, you will receive an email with a link to the HNES online portal from…
Last checked against the official source: 28 Aug 2026. Scheme parameters are set by the funder and can change — verify before applying, or let us do it for you.
Ask about eligibility
Plain-English answers about this scheme's published criteria — not application advice.