The Heat Network Efficiency Scheme (HNES) is a government grant to help improve the performance of existing district and communal heat networks in England and Wales. It offers two routes

• Revenue grants to fund external optimisation studies that diagnose issues and recommend costed measures. Typical awards are £15,000 to £24,000 and can cover up to 100 percent of eligible costs including non recoverable VAT.

• Capital grants to part fund delivery of eligible improvements such as controls upgrades, balancing and flushing, HIU replacement, insulation and metering. Capital can cover up to but not including 50 percent of eligible costs including non recoverable VAT. Individual capital applications can be up to but not including £10 million. Requests over £1 million are subject to additional Subsidy Control checks.

Legal entities responsible for operating or managing an existing network for example local authorities, NHS Trusts, universities, registered companies, charities and community interest companies. Individuals and consultants applying on behalf of clients are not eligible.

Scheme focus and assessment
Applications are competitive and prioritise projects that

• Reduce customer detriment with a focus on residential customers in need

• Improve operational performance efficiency and losses and deliver carbon savings

• Show clear value for money and credible deliverability within scheme timelines.

• The project is an existing or operational heat or communal network in England or Wales.

• You can evidence a baseline of current performance and quantify predicted benefits.

• Your scope uses eligible measures for example controls, balancing, HIUs, insulation, metering and similar improvements.

• For capital, you have a match funding plan and can begin works within the funding window. Applicants must provide monthly spend forecasts and start within three months of signing the grant agreement.

• You can meet monitoring and reporting obligations set by the scheme.

HNES is a £77 million programme running multiple funding rounds through to 2028.

Round 11 of HNES funding opens 1st December through to 6th February

• Evidencing customer need and benefit
  Many bids underplay how works reduce customer detriment or lack proof that residents in need will benefit.

  • How Elevate helps, we understand what the assessors are looking for, and will frame your case clearly, aligning it to HNES Objectives 1 and 2, and evidence customer need to meet assessor expectations.

• Weak baseline data and predicted targets
  Patchy metering and limited KPIs make it hard to show before and after performance.

  • How Elevate helps, we will build a clean baseline, fill data gaps, and quantify predicted improvements using the optimisation study scope HNES expects.

• Scoping ineligible works
  Requests sometimes include excluded items for example replacing primary heat sources or in dwelling emitters and tertiary pipework.

  • How Elevate helps, we will assess your application internally to ensure it aligns with HNES guidelines. For works outside of eligibility we can offer alternative solutions where needed.

·        Match funding readiness for capital bids
Capital awards can fund up to but not including half of eligible costs and requests over one million pounds face additional Subsidy Control checks.

·   How Elevate helps, we evidence eligible costs, structure match funding clearly, and prepare the short Subsidy Control narrative to de risk assessment.

• Deliverability within scheme timelines
  Projects must start within three months of signing the agreement and spend must align to financial year drawdown.

  • How Elevate helps, we can provide a realistic procurement and mobilisation plan with milestones and spend forecasts that fit HNES timeframes.

• Unclear value for money story
  Some applications list measures without linking costs to quantified outcomes.

  • How Elevate helps, we tie itemised costs to expected KPI gains and customer outcomes so the value per pound is obvious at moderation.

• Re applications without learning
  Prior recipients must show how learning was shared and acted upon before seeking more funding.

  • How Elevate helps , we produce a short dissemination note and show portfolio level learning to satisfy this requirement.

• Metering and regulatory overlaps
  Funding cannot cover metering required under the metering and billing regulations and HNES may add notification as a condition precedent.

  • How Elevate helps, we can provide assistance with metering and billing assistance and are aware that alternative funds are being made available to assist with this. For the HNES application we will look to include the cost effectiveness evidence where needed, and further explain the HNES rules