HNES Funding: Heat Network Efficiency Scheme Round 14

Status, checked 31 October 2026: HNES Round 13 has closed. Applications for Round 14 are expected to open on 30 November 2026, subject to budget availability, with details to follow. No date is guaranteed until the scheme administrator publishes it.

HNES funding is aimed at a specific problem: district heating and communal heating schemes that already exist but do not perform as they should. If you own, operate or manage one, this guide sets out what the Heat Network Efficiency Scheme (HNES) covers, who can apply, how to prepare before Round 14 opens, and how it differs from the Green Heat Network Fund (GHNF). We checked the gov.uk HNES overview (last updated 12 October 2026) and the gov.uk GHNF page on 31 October 2026.

This is an independent information guide. We do not administer HNES or decide applications, and we are not an installer. For the wider picture of public money for networks, see our guide to heat network funding.

What HNES funds

Government describes HNES as funding for improvements to existing district heating or communal heating projects that are operating sub-optimally and causing poor outcomes for customers and operators. The gov.uk GHNF page describes it in similar terms: grant funding for existing operational networks and communal systems, part-funding performance improvements and optimisation studies.

The key word is existing. HNES is not a route to build a new network, and it is not a general grant for installing a heat pump in a single building. It is a repair-and-improve fund for heating that has already been built and is not delivering what it should.

In practice that points to two kinds of activity that the gov.uk wording names: studies that work out why a network is underperforming and what to change, and the performance improvements themselves. We do not publish a list of eligible measures, because the sourced overview does not give one. The applicant guidance is where eligible costs are defined, so read it before you scope anything.

The programme is a £107 million grant programme spanning 2023-2024 to 2029-2030. Government has not published per-round amounts in the pages we checked, and we do not state any. Treat the figure as the size of the whole programme, not the size of an award.

Who can apply for HNES funding

Organisations in the public, private and third sectors can apply. The scheme covers England and Wales only. That means a local authority with an ageing communal system, a housing association or private landlord with a communal scheme, a university or hospital estate running a district network, or a commercial operator of a heat network can all be in scope, provided the scheme is existing and operating below par.

If your heating is a single boiler room serving one building, HNES is probably not the fund. In that case look at the options in our guide to heat pump grants for business, which sets out what is open and closed for non-domestic buildings.

Scotland and Northern Ireland are outside the scope of the scheme as described on gov.uk. If your network spans nations, ask the administrator which parts are eligible before you commit time to an application.

The HNES timetable: Round 13 closed, Round 14 expected

Round 13 has closed. Applications for Round 14 are expected to open on 30 November 2026, subject to budget availability, with details to follow. The words "expected" and "subject to budget" matter: plan around 30 November, but do not treat it as a fixed commitment.

The programme runs to 2029-2030, so more rounds may follow, but government has not published a round calendar beyond Round 14 in the pages we checked. We do not speculate on later dates.

How to prepare an HNES application, step by step

The official process is short. Read the applicant guidance, then email hnes@talan.com to request an application form. An August 2026 applicant guidance document is published on gov.uk. We do not reproduce the form or its scoring, because we have not seen them and they are not in the sourced overview. The steps below are our suggested preparation, built around what the scheme says it funds.

First, confirm that your scheme is in scope. Is it district or communal heating, is it already operating, and is it in England or Wales? Then work out who holds the right to apply: the owner, the operator or a managing agent. Settle that internally before the window opens, because a form with an unclear applicant is a delay you can avoid.

• Read the August 2026 applicant guidance in full and note every document it asks for.
• Write a one-page problem statement: what is wrong with the network, since when, and who is affected.
• Gather evidence of poor performance (see the next section) for a recent, representative period.
• Agree internally who the applicant is and who signs off the application and any match funding.
• Email hnes@talan.com to request the application form and ask when the Round 14 window will open and close.
• Scope the improvement or study you want funded, with a timeline that fits the programme and its end year of 2029-2030.

Evidence of poor performance

The scheme exists for networks that are operating sub-optimally and causing poor outcomes for customers and operators, so your application has to show both halves: the technical underperformance and the outcome for the people on the network. We cannot tell you the exact evidence thresholds, because they are not in the sourced overview and the applicant guidance governs. The types of record below are the natural starting point.

Operators generally hold more of this than they realise. The task is to pull it into one coherent picture rather than a folder of unrelated spreadsheets. A clear before-and-after logic, showing what you expect to change if funding is awarded, is easier for an assessor to follow than a long list of faults.

• Heat meter and plant data that shows how the network is running against its design.
• Customer complaint logs, repair call-outs and tenant or occupier feedback.
• Energy bills and running costs for the network over a recent period.
• Maintenance and fault history for plant, pipework and substations or interface units.

HNES versus GHNF: which fund is which

People often confuse the two heat network funds. HNES is for improving existing district or communal heating that is underperforming. The Green Heat Network Fund (GHNF) funds new low-carbon heat networks, including cooling, and the retrofit and expansion of existing networks. GHNF is a core element of the Heat Network Transformation Programme, and funding under it can be drawn down until the 2029 to 2030 financial year.

On our check of the gov.uk GHNF page on 31 October 2026 (last updated 10 June 2026), Round 11 closed on 2 May 2026 and Round 12 closed at 11.59pm on 25 September 2026. The page lists no Round 13 or any later round, so no GHNF round is shown open on 31 October 2026. Like HNES, GHNF covers England and Wales and accepts applications from public, private and third-sector organisations, but not from individuals, households or sole traders. The delivery partner is Triple Point Heat Networks Investment Management, which can be contacted at enquiries@tp-heatnetworks.org.

The practical test is the state of the network. If the scheme is built and working poorly, start with HNES. If you are building a new network or expanding or retrofitting an existing one, GHNF is the relevant fund. If you are unsure which side of the line you fall on, ask both administrators; do not assume.

Common mistakes to avoid

• Applying for a new network. HNES is for existing networks; new builds belong with GHNF.
• Describing a design preference rather than a performance problem. The scheme targets sub-optimal operation and poor outcomes.
• Leaving it to the window. Evidence gathering and internal sign-off are the slow parts, so start now.
• Treating 30 November 2026 as certain. It is expected, subject to budget availability.

What to do between rounds

With Round 14 about a month away, there is a sensible order of work. Read the applicant guidance now, email hnes@talan.com to request the form, and start assembling the performance evidence. If your network is not in scope, or you would rather not wait, look at the other routes.

Three other sources are worth knowing about. The Boiler Upgrade Scheme (BUS), per Ofgem, offers £7,500 for air-to-water, ground-source or water-source heat pumps, or £9,000 for air-to-water or ground-source in an eligible off-gas-grid property, available until 31 March 2027, for up to 45 kWth for one installation, in homes and non-domestic buildings in England and Wales. Ofgem gives no detailed non-domestic eligibility wording, so confirm eligibility with an MCS-certified installer or DESNZ. BUS is a building-level heat pump grant, not a network fund.

Capital allowances can reduce the tax cost of spending a business funds itself. The Annual Investment Allowance and other capital allowances (AIA, £1 million a year) apply to qualifying plant and machinery, and relief applies to the cost the business funds itself. Confirm treatment with an accountant. Our page on the cost after grants explains how grant and tax relief fit together in a budget.

Two older routes are closed. Salix PSDS Phase 4 closed to new applications in November 2024 and no further investment is committed beyond awarded projects. The Industrial Energy Transformation Fund (IETF) is closed with no successor planned. Do not build a plan that depends on either.

This site publishes funding information and does not run schemes. Send an enquiry and we reply by email.

Heat network zoning and what it means for funding

Heat network zoning in England is not a grant, but it affects planning. Zoning designates areas where heat networks are expected to be the lowest-cost, low-carbon heating option. Once a zone is designated and a developer appointed, certain buildings may be required to connect within a specified timeframe, including existing communally heated buildings. Owners can apply for exemptions, which may be conditional or temporary. A Bevan Brittan note dated 22 October 2026 still describes the Heat Network Zones (England) Regulations 2026 as draft; we could not confirm on 31 October 2026 that they have been made, so check gov.uk.

For funding, the link is simple. An owner of an existing communal scheme that underperforms may find HNES the route to put it right before any zone developer approaches it. A zone developer building something new would look to GHNF instead. A building inside a future zone should weigh connection against its own heat pump.

Frequently asked questions

What is HNES funding?

HNES is the Heat Network Efficiency Scheme, a government grant programme of £107 million spanning 2023-2024 to 2029-2030. It funds improvements to existing district heating or communal heating projects that are operating sub-optimally and causing poor outcomes for customers and operators. Public, private and third-sector organisations in England and Wales can apply. Source: gov.uk HNES overview, checked 31 October 2026.

When does HNES Round 14 open?

Applications for Round 14 are expected to open on 30 November 2026, subject to budget availability, with details to follow. Round 13 has closed. Because the date is expected rather than confirmed, check the gov.uk HNES overview, last updated 12 October 2026 when we checked on 31 October 2026, and ask the administrator before you plan around a specific day.

How do I apply for HNES?

Read the applicant guidance on gov.uk first, then email hnes@talan.com to request an application form. An August 2026 applicant guidance document exists on gov.uk. Prepare evidence that your existing district or communal heating is underperforming, and ask the administrator when the Round 14 window will open and close so you can plan your submission.

Is HNES the same as the Green Heat Network Fund?

No. HNES funds improvements to existing district or communal heating that is operating poorly. The Green Heat Network Fund funds new low-carbon heat networks and the retrofit and expansion of existing networks. On 31 October 2026 the gov.uk GHNF page listed no round as open: Round 12 closed on 25 September 2026 and no later round was shown.

Can a single building apply to HNES?

HNES is for existing district heating or communal heating projects, so it is not designed as a grant for a heat pump in one building. For a building-level heat pump, the Boiler Upgrade Scheme covers non-domestic buildings in England and Wales, though Ofgem gives no detailed non-domestic eligibility wording. Confirm eligibility with an MCS-certified installer or DESNZ.