City of Wolverhampton Council has secured £8 million in government funding to help install a new heat network on the Heath Town estate, aiming to cut energy costs for more than 1,000 residents.

The funding, awarded through the Department for Energy Security and Net Zero’s (DSNEZ) Heat Network Efficiency Scheme, will contribute to the £19.5 million project, with the remaining investment coming from the Council’s Housing Revenue Account Capital Programme.


The existing district heating system, first installed 55 years ago, is outdated and has only received minor upgrades over the decades. The boiler house, originally designed to run on coal, is now unfit for purpose, and its pre-cast reinforced concrete panelling has deteriorated, reaching the end of its lifespan.

The new modernised heat network will significantly improve efficiency and energy consumption, reducing pumping energy costs and network return temperatures. Upgrades will include:

• New control systems to optimise energy use.

• Replacement of pumps and pipework to enhance reliability.

• Installation of new heat interface units (HIUs) in residents' homes.

Work on the new heat network is set to begin in April and will take approximately two years to complete. The project is a major step towards sustainable, cost-effective heating solutions for the Heath Town estate.