The Heat Network Efficiency Scheme (HNES) helped improve performance, reliability, and efficiency across 181 heat networks in 2025 – benefiting 27,500 residents. It’s no wonder housing providers are keen to make the most of the scheme. With the eleventh funding round now open, we’ve pulled together answers to the questions we get asked most often.

 

What’s the goal of HNES?

HNES is all about making existing heat networks work better – especially where customers and operators are struggling. It’s designed to ease the impact of the cost-of-living and energy crises by focusing on areas that need it most.

 

What are the main objectives of HNES?

• Cut carbon emissions by improving efficiency.
• Reduce customer issues and build confidence.
• Get the market ready for future regulations and technical standards.

 

Who can apply for HNES funding?

If you manage or maintain a district or communal heat network in England or Wales, you’re in scope. That includes:

• Public sector – Local Authorities, Housing Associations, Universities, NHS Trusts, and other government bodies.
• Private sector – Registered companies that file annual accounts.
• Third sector – Charities, social enterprises, and community groups delivering essential services.

HNES prioritises projects that help customers in need.

 

Read more: Heat Network Efficiency Scheme Funding: Transforming Communal Heating

 

What does “customers in need” mean?

These are residents who are financially vulnerable and will benefit most from lower heating costs or service improvements. Think social housing, low-income housing, fuel poverty, extra care housing, care homes, and supported housing.

 

Any recent changes to eligibility for HNES?

A few changes to note:

• You no longer need to register with the Office for Product and Safety Standards (OPSS) in order to receive grant funding. However, HNES still reserves the right to request a funded heat network provide an OPSS notification, if it is legally required to install meters.
• Applicants will need to register with the Ofgem digital portal when this becomes available.
• A new requirement from round 10 was to register with the Energy Ombudsman.

 

How much funding is available for revenue applications?

Typically between £15,000 and £24,000 per project. VAT that can be recovered isn’t included in the grant claim.

 

How can Chirpy Heat help?

We can support your HNES revenue application free of charge, on the understanding that if you win funding, we would carry out the optimisation study. HNES only funds a limited number of revenue studies, so let’s chat about how many applications you can submit.

 

What information will you need for a HNES funding application?

We’ll send you a checklist – things like heat and fuel usage, heat interface unit and heat meter specifications, breakdown data, recent retrofit projects, and a short narrative about why this scheme matters for your network. Don’t worry, we’ll guide you through it.

 

What about capital bids?

If you secure revenue funding, we’ll carry out a site visit and produce an optimisation review to HNES standards. From there, you can apply for up to 49% match-funding to implement the recommended measures.

 

Key dates

Round 11 closes Friday 6th February, but we need to submit an expression of interest by Friday 23rd January to access the HNES application site on your behalf. So don’t wait – get in touch now!

 

📩 Email us at [email protected] to start your HNES application.

 

 

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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.

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