Since the early HNES funding rounds, we’ve helped secure more than £3.36 million in funding for housing providers to apply energy efficiency measures and we’ve seen it bring significant benefits to them, their customers, and the environment.

If you manage a heat network, you might have already heard about HNES. The opportunity to save on the cost of making improvements makes it one of the most practical funding programmes out there for anyone running or managing a heat network that’s not quite operating as efficiently as it could be.

With the next funding round now open and due to close on 6 February 2026, now is the time to ask, “What type of funding is available and what does it cover?”

The Scope for Heat Network Funding

HNES was designed to help improve existing or operational heat networks – not to build new ones, but to make the ones already serving communities work and operate better.

There are two main pots of money: Revenue Grants and Capital Funding.

Revenue Grants are all about understanding what’s going wrong and what can be done to fix it. Operators bring in independent/third-party experts to carry out optimisation studies, which dive deep into the system – from the energy centre to the distribution pipework through to the dwellings – to find out why things aren’t running efficiently or as originally designed.

Typically, HNES offers between £15,000 and £24,000 per project for these studies, depending on the size of the network. That might not sound huge, but the value comes with the insights that come out of them. In our experience, these studies often uncover issues that have been costing networks thousands every year, whether it’s a control setting that’s never been quite right, insulation that’s deteriorated, or systems that haven’t been rebalanced in years.

Once the optimisation report is complete and meets HNES standards, that’s where the Capital Funding comes in. This can cover up to 49% of the cost to actually carry out the improvement measures identified.

HNES Funding In Practice

We’ve seen housing providers use HNES funding for things like reconfiguring and replacing pipework, improving plant room and distribution controls, insulating pipework, and recommissioning heat interface units and control systems. What it can’t be used for is replacing the main heat source, so if you’re hoping to swap your gas boilers for a new heat pump, that would need to be funded either in-house or potentially through other funding streams, such as the Green Heat Network Fund (GHNF).

Real-World Impact

Since the start of HNES, we’ve been lucky enough to see some really encouraging results. Across 78 optimisation studies, we’ve identified 605 efficiency measures and potential savings of over 20.4 million kWh of energy. That’s equal to around 70,000 tonnes of carbon over 20 years.

And beyond the environmental side, residents will get to notice the difference too. On average, the savings to residents’ energy bills identified so far work out at around £238 per property per year. Of course, that varies depending on the scale of retrofit and project, but it gives you an idea of the kind of long-term benefits we are seeing.

At Chirpy Heat, we have seen these benefits while supporting over 100 HNES applications, in both Revenue and Capital applications, with a success rate of over 96%.

Timeframe For HNES Funding

After the current funding round closes on 6 February 2026, more rounds are expected in March 2026 and August 2026.

Find more details of the scheme on the government website here and get in touch at [email protected] to find out how we can support your HNES funding bid.

Chirpy Heat Insight Group

Join the Chirpy Heat Insight Group – your essential hub for staying informed, equipped, and connected on the road to heat network compliance. This free, exclusive community, brought to you by our heat networks consultancy, helps housing providers stay ahead in managing communal and district heating. Members gain access to the latest regulatory news, communal heating systems advice, practical tools for strategic planning, insights on decarbonising heat networks, and guidance from Chirpy Heat’s experts and peers. You’ll also benefit from priority access to webinars and events aimed at supporting and guiding housing providers in sustainable heating solutions. Sign up today and receive a free Chirpy Bird for your desk – don’t worry, it’s not a real bird, just a cheerful companion while you manage your heat networks stress-free!

SIGN UP NOW