55 heat network projects win funding for upgrades

Thousands of homes and businesses will benefit from upgrades to old and inefficient heat networks, after the government released £13.9 million for 55 projects.

Some 24 schemes across England will receive a share of more than £13.2 million, while a further £667,000 will go to 31 projects to fund investigations into the improvements needed to ensure customers receive a reliable service, with heat network operators taking the required action.

The 24 improvement projects are forecast to benefit customers in more than 4,000 homes.

Lord Callanan, minister for energy efficiency and green finance, said: “Families and businesses shouldn’t have to worry about whether they will receive a reliable heating and hot water supply.

“This funding means improvements will be made to old and inefficient heat networks, preventing further breakdowns and ensuring they use less energy.

“We’re investing millions to build new heat networks, reducing emissions and providing low-cost heating to communities across the country. But it’s equally important we upgrade and maintain existing systems so everyone benefits.”

The majority of projects are being led by local councils or housing associations.

Almost half of the money released will be spent in London, with more than £5.4 million set aside for projects in the capital.

Projects in Yorkshire and the Humber will receive £3.9 million and £3.5 million will be spent on schemes in the North West of the country. All remaining regions have received less than £1 million for upgrades.

The Heat Network Efficiency Scheme (HNES), which opened in February this year, forms part of the government’s support for heat networks. This also includes the £288 million Green Heat Network Fund, which supports the creation of heat network projects that use a low carbon heating source, such as a heat pump, solar or geothermal energy, to provide heat and hot water to connected homes and businesses.

Louise Singleton, principal consultant at Gemserv, added: “Today’s announcement shows the substantial impact that HNES will have on the efficiency of heat networks across the country.

“Funding from the scheme today will play a huge part in improving the efficiency and lowering the costs of domestic heating for thousands of residents and businesses.

“Nearly £14 million awarded will ensure existing heat network infrastructure is fit for the future, ensuring the technology can provide the most efficient, economical heating for consumers, and preparing them for greater expansion to new and existing homes.”

Last month, government launched a consultation to shape and improve the future of heat networks.

Under the proposals, homes and businesses supplied by heat networks would receive greater consumer protections currently only afforded to those on traditional gas and electricity contracts.

This would ensure fairer prices through their inclusion in a potential future price cap on energy bills, consistent standards for quality of service and supply of heat, backed up with regular and clear bills.