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Heat Network Funding

£320m Heat Networks Investment Project (HNIP)

The pilot phase of the £320m Heat Networks Investment Project, a capital fund to increase the volume of heat networks in England and Wales, has now closed. The HNIP main scheme with wider eligibility will open in due course. Details of the scheme can be found in the  Government response to the HNIP consultation and the  Government's news announcement of the pilot.

To register an interest in HNIP, email the Heat Networks team. Details about requirements for the HNIP Pilot are hosted on an external website.

The Heat Network Delivery Unit

Recognising the capacity and capability challenges which local authorities identified as barriers to heat network deployment in the UK, the Heat Network Delivery Unit (HNDU) was established by the Department of Energy and Climate Change to provide grant funding and guidance to local authorities in England and Wales. This honoured a commitment in  'The future of heating: meeting the challenge' (published in March 2013) to support local authorities exploring heat network opportunities.

The HNDU is staffed by experts, who have gained experience developing heat networks outside the civil service working on technical or commercial aspects of heat networks for consultancies or local authorities.

The process

Local authorities apply for HNDU support through bidding rounds, of which there have been six to date. Successful applicants are published on the  Heat Network Delivery Funding page.

All bids are reviewed by a panel of engineering, financial and commercial experts with significant experience in heat networks development. Grant funding of no more than 67% of eligible costs is provided to successful local authorities under section 31 of the Local Government Act. Eligible costs are defined as externally commissioned consultancy costs for heat network development work.

If successful, each local authority is supported by the team of specialists within the HNDU as well as an online collaboration site and face to face meetings.

For further information on the Heat Networks Delivery Unit, please email