The UK Government has approved funding for a major heat network upgrade scheme to help lower bills and create a more reliable heating supply.

Poorly performing heat networks in more than 4,000 homes will benefit from improvement works.

Twenty-four projects 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 funding announced today, Tuesday 26 September, is the first round of awards to be made under the £32 million Heat Network Efficiency Scheme.

Making the announcement, 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."

Heat networks offer carbon emissions savings by supplying heat to buildings from a central source, avoiding the need for households and workplaces to rely on individual, energy-intensive heating solutions - such as gas boilers. As such, heat networks provide a significant contribution to the UK's carbon reduction commitment.

But some heat networks haven't been upgraded since they were installed more than 40 years ago, meaning many are inefficient due to not being installed properly, poorly maintained or the equipment wearing out.

The Heat Network Efficiency Scheme (HNES), which opened in February this year, forms an important 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.

Projects to receive funding today include:

• Leeds City Council, which will receive more than £2.2 million to improve the efficiency of heat networks serving 837 residents through improving insulation levels, reducing heat losses and leakages

• Great Places Housing Association, which has been awarded more than £1.6 million to improve the efficiency of the Richmond Park heat network in Sheffield, serving 299 residents. The funding will seek to correct high heat loss issues, bad insulation and old equipment

• The Guinness Partnership, which has been awarded £2 million for the improvement of four heat networks serving almost 700 residents across sites in Aylesbury, Stockport, Gloucester, and Brixton. The funding will go towards reducing heat network costs and heat losses, improving insulation, and replacing outdated infrastructure