Government’s energy saving scheme to reduce carbon emissions

Thousands of homes across England and Wales can now apply for Round 3 to receive a grant of £32 million to upgrade their old and ineffective heat networks and generate affordable energy with decreased carbon emissions. You can submit your applications for HNES Round 3 by 7 July 2023. 

In the government’s recently launched Heat Network Efficiency Scheme (HNES), outdated equipment will be updated with energy-efficient substitutes such as pipe insulation, replacement pumps, and underfloor heating controls.  

To check the performance of the systems correctly, cutting-edge data monitoring systems will also be introduced. This scheme delivers enhancements to current heat networks and helps consumers reduce their energy use in more than 100,000 homes - decreasing the burden of swelling heating bills.  

Heat networks decrease carbon emissions by providing heat to buildings from a central source, circumventing the need to depend on individual, energy-intensive heating methods - like gas boilers.  

The HNES funding can offer:  

  • Up to (but not including) 50% of eligible project costs (incl. non-recoverable VAT) for capital grant applications. 
  • Up to 100% of eligible project costs (incl. non-recoverable VAT) for revenue (Optimisation Study) grant applications.

In addition, multiple funding rounds will be run which will take place nearly bi-monthly from the beginning of the scheme with notification letters distributed as soon as possible and subject to receiving all approvals. 

Who Can Apply for HNES? 

HNES is open to applicants in England and Wales that oversee the operations or manage current communal heating systems or district heat networks. These include:  

  • Public sector organisations including NHS trusts and universities and other government departments  
  • Private sector organisations that are registered companies and submit annual accounts  
  • Third-sector organisations such as registered charities, community investment companies, and other such organisations that are officially registered and submit annual accounts. 

For further details on the scheme and how to apply, read here. 


How can LHC help? 

At LHC, we are very passionate about reducing carbon emissions and supporting the government in meeting the net-zero targets by 2050. 

Our Energy Efficiency Measures & Associated Works framework (N8) allows local authorities, social landlords, and other public sector bodies to source specialist suppliers for the installation of 21 energy efficiency measures and associated works delivered through 2 workstreams. Organisations will be able to spend the HNES grant by sourcing the expert services of our suppliers listed in the N8 framework. 

Fully OJEU compliant, the framework is suitable for low, medium and high-rise housing schemes, schools and colleges and all other types of public sector buildings. 

To learn more about the N8 framework, read here. 

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