Green Heat Network Fund: Rounds and Eligibility 2026

The green heat network fund is the main government grant for low-carbon district heating in England and Wales, and it is one of the few funds that reaches commercial and public-sector projects at scale. This guide sets out where the green heat network fund stands on 20 October 2026, who is allowed to apply, what it pays for, and how to prepare so you are ready when the next window is announced.

It is written for developers, housing and estates teams, councils and building owners weighing up heat networks and ambient loops. If your building only needs a heat pump of its own rather than a shared network, the later sections explain which routes to use instead. Our wider overview of commercial heat pump grants covers every scheme we track, with open and closed status shown by date.

Green Heat Network Fund status at 31 October 2026

We checked the gov.uk Green Heat Network Fund page, last updated 10 June 2026, on 20 October 2026. It shows two recent application rounds and no later one.

The key point for anyone planning a project is that no GHNF round was open on the date checked. Rounds 11 and 12 have both shut, and gov.uk does not publish a date for a further round. Funding can be drawn down until the 2029 to 2030 financial year, which tells you the programme is still running, but it does not tell you when new applications will be invited.

• Round 11: closed on 2 May 2026.
• Round 12: closed at 11.59pm on 25 September 2026.
• Next round: none listed on gov.uk at the date checked.
• Delivery partner: Triple Point Heat Networks Investment Management, which handles enquiries about the fund.
• Geography: England and Wales.

What the Green Heat Network Fund pays for

GHNF supports the building of new low-carbon heat networks, including networks that also provide cooling. It also supports the retrofit and expansion of existing heat networks, for example connecting more buildings to a network that already runs or upgrading its heat source to a low-carbon one.

In practice that means the fund is aimed at shared heating infrastructure: a central energy centre, the pipework that carries heat between buildings, and the low-carbon heat source such as a large heat pump. It is not a fund for replacing the boiler in a single shop, office or care home. gov.uk describes GHNF as a core element of the Heat Network Transformation Programme, which is the wider government effort to grow and regulate heat networks.

We do not publish intervention rates, minimum project sizes or typical award sizes here, because we have not confirmed them against a current source. Take those details from the gov.uk guidance.

Who can apply for GHNF

Public, private and third-sector organisations can apply. That includes local authorities, housing providers, commercial developers, energy service companies and charities that are developing or operating a heat network.

Individuals, households and sole traders cannot apply. If you are a sole trader running a workshop, or a homeowner, GHNF is not a route for you, and you should look at the schemes in the section on buildings without a network below.

The project must be in England or Wales.

How to prepare between rounds

Because windows have fixed deadlines, the work that decides success happens before a round opens. Teams that wait for the announcement to start usually find the time between opening and closing too short for a project with several stakeholders.

A sensible preparation sequence looks like this. It is general project preparation rather than a statement of the scheme rules, so check each item against the guidance when a round is published.

• Define the network: which buildings connect, who owns the pipework and the energy centre, and who will operate it.
• Gather heat demand data for each connected building, ideally from at least a full year of metered gas or heat use.
• Commission a feasibility or options study so the choice of heat source, such as an air source or water source heat pump, is evidenced.
• Agree the land, access and wayleave position for the energy centre and the pipe routes.
• Build a financial model showing capital cost, running cost, heat sale income and what you would do without a grant.
• Line up the other funding and the investment decision-makers, so that match funding is not a surprise at the deadline.
• Register for gov.uk updates and contact the delivery partner, Triple Point Heat Networks Investment Management, to ask when guidance for the next round is expected.

Existing networks: the Heat Network Efficiency Scheme

If you already run a district heating network or a communal heating system, the relevant fund is usually not GHNF but the Heat Network Efficiency Scheme (HNES). Per gov.uk, HNES gives grant funding to existing operational district heating networks and communal heating systems in England and Wales, to part-fund performance improvements and optimisation studies.

Public, private and third-sector applicants can apply. The gov.uk overview gives revenue grants of up to £2 million (2023 to 2025) for third-party optimisation studies, and capital grants of up to £75 million across 2023/24 to 2027/28. The August 2026 guidance also records an additional £30 million of capital awarded in January 2026.

On gov.uk (updated 12 October 2026), Round 13 has closed and applications for Round 14 are expected to open on 30 November 2026, subject to budget availability, so plan the evidence now. A good first step for an operator is a metered performance review of the existing network, because that evidence supports either an optimisation study or a capital improvement application.

If you have no heat network: the Boiler Upgrade Scheme

Most commercial buildings are not connected to a heat network and are not part of one. If that describes you, the Boiler Upgrade Scheme (BUS) is the first scheme to check. Per the Ofgem BUS page, it covers England and Wales and applies to heat pumps and biomass boilers in homes and non-domestic buildings.

The grant is £7,500 for an air-to-water, ground-source or water-source heat pump and £5,000 for a biomass boiler. A £9,000 grant applies to an air-to-water or ground-source heat pump in an eligible off-gas-grid property, for new applications from 21 July 2026 and available to 31 March 2027. The £2,500 air-to-air grant is for residential properties only. A June 2025 Parliamentary written answer says the scheme continues to give grants of up to £7,500 to small non-domestic property owners.

The single-installation limit is 45 kWth, or up to 300 kWth for a shared ground loop. The installer must be MCS certified and applies for the voucher on the owner's behalf. The applicant must own the property, although landlords can apply, and the system must be commissioned no more than 120 days before an application is properly made.

Ofgem's page does not say which non-domestic properties qualify and does not give a scheme end date. Confirm eligibility with an MCS installer or with DESNZ at boilerupgradescheme@energysecurity.gov.uk, and check Ofgem for the end date before you commit to a programme.

Capital allowances for the part the business pays for

Whatever grant you win, most of the cost of a heat pump or network connection is still paid by the business. The Annual Investment Allowance and other capital allowances (AIA), which is £1 million a year, are tax reliefs on qualifying plant and machinery. They apply to the cost the business funds itself, so a grant reduces the qualifying spend.

Do not assume that different allowances can be added together on the same spend. Ask your accountant to confirm which relief applies to the project and how any grant is treated. Our cost guide explains how to build the full capital cost so you know what your accountant has to work with.

Funds that are closed: IETF and PSDS

Two funds that heat pump projects were once pointed towards are not available. The Industrial Energy Transformation Fund (IETF) is closed: gov.uk guidance lists it as closed from July 2025, there is no further extension after the Spending Review, no successor fund is planned, and the second Phase 3 window was cancelled. Projects already funded in earlier phases continue.

The Public Sector Decarbonisation Scheme (PSDS) is also closed to new applications. Its Phase 4 window closed on 25 November 2024, and government has committed no further PSDS investment beyond projects already awarded, according to a Parliamentary written answer of 20 October 2025 and Salix Finance. If a supplier tells you either fund is open, ask for the gov.uk page that says so.

Common mistakes

The first is applying for the wrong fund: a single-building heat pump belongs in BUS territory, a new multi-building network belongs in GHNF territory, and an existing network belongs in HNES.

The second is treating a closed round as a pause that will reopen on a known date. Plan the project so it can proceed, or be re-scoped, without GHNF. The third is leaving evidence gathering until the deadline, particularly heat demand data and land agreements. The fourth is buying equipment before eligibility is confirmed, which can rule out a BUS voucher or weaken a funding case.

What to ask an installer or developer

Use these questions when you speak to an MCS installer for a single building, or to a heat network developer for a shared scheme.

• Is my building eligible for BUS, and will you confirm that in writing before any work starts?
• Is the system within the 45 kWth single-installation limit, or does a shared ground loop apply?
• Are you MCS certified, and will you apply for the voucher on my behalf?
• Does the quote show the grant as a separate line, so I can see the net cost I am paying?
• What is the commissioning date, and does it sit inside the 120-day window before the application?
• For a network: who owns and operates it, and what happens to heat prices and maintenance after year one?
• What is the plan if the grant route closes before we submit?

Where to go next

If you are developing a network, start preparing now and watch gov.uk for the next round. If you operate one, check HNES. If you have a single building, work through BUS and capital allowances with your installer and accountant. Send an enquiry and we reply by email.

Frequently asked questions

Is the Green Heat Network Fund open?

Not on 20 October 2026. Round 11 closed on 2 May 2026 and Round 12 closed at 11.59pm on 25 September 2026. The gov.uk page, last updated 10 June 2026, lists no later round. Watch gov.uk for an announcement, and ask the delivery partner, Triple Point Heat Networks Investment Management, when guidance is expected.

Who can apply for the Green Heat Network Fund?

Public, private and third-sector organisations can apply for projects in England and Wales. Individuals, households and sole traders cannot. The fund supports new low-carbon heat networks, including cooling, and the retrofit and expansion of existing networks. Check the gov.uk guidance for the full eligibility rules when a round opens.

What is the difference between GHNF and HNES?

GHNF supports new low-carbon heat networks and the retrofit and expansion of existing ones. HNES, per gov.uk, funds performance improvements and optimisation studies for existing operational district heating networks and communal heating systems in England and Wales. Operators of working networks should check HNES first.

Can a single building get a grant if it is not on a heat network?

Possibly, through the Boiler Upgrade Scheme in England and Wales. Ofgem says it covers heat pumps in homes and non-domestic buildings, with a £7,500 grant for air-to-water, ground-source or water-source heat pumps. Ofgem does not say which non-domestic properties qualify, so confirm with an MCS installer or DESNZ.

Are IETF and PSDS still available?

No. gov.uk guidance lists the Industrial Energy Transformation Fund as closed from July 2025, with no successor planned. The Public Sector Decarbonisation Scheme Phase 4 window closed on 25 November 2024, and government has committed no further investment beyond projects already awarded. Do not plan a new application around either.

Can I claim capital allowances on a heat pump?

The Annual Investment Allowance, which is £1 million a year, and other capital allowances are tax reliefs on qualifying plant and machinery. They apply to the cost the business funds itself, so a grant reduces the qualifying spend. Confirm how they apply to your project with an accountant before you commit.