The Renewable & Low Carbon Energy website for agricultural and rural communities

Breaking News: UK Government Announces a £270 million Green Heat Network Fund

Announced by the UK government, the fund is to support low-carbon technologies like heat pumps, solar and geothermal energy.

Case Studies

The objective of this fund is to provide support the deployment of new technologies like heat pumps, geothermal energy along with solar energy.

One of the largest sources for carbon emissions in the UK is the heat present in the buildings. Accounting for 21% of the total amount and in the current times, there is an urgent need to come up with innovative solutions related to heating. These heating solutions must be in alignment with the climate change needs.

The announced fund of £270 million is aimed at supporting the complete deployment of these solutions from 2022. The function of such heat networks is to supply heat to the buildings from a centralised source at the same time also avoiding the need for separate heating solutions for individual workplaces. Currently, there are about 14,000 heating networks present in the country which provide heating to about 480,000 consumers. 

These heat networks are usually very cost-effective and are a very good way to reduce carbon emissions. Also, these are the only way via which heat from large rivers along with urban recovered heat can be perfectly utilised.

A funding of  £165 million was provided by the previous Heat Networks Investment Project (HNIP) which ranged across Wales and England from 2018.

This is what the Energy Minister Lord Callanan had to say on this:

“It is highly significant that we come up with innovative solutions that help us build a sustainable future. Also, it is important to heat our homes in ways that are economically feasible.

“The announcement made today shows that we are going in the right direction and soon will be coming up with better technologies which could help us in building a sustainable future.”

It is also to be noted that heat networks currently meet approximately 2% of the UK’s demand for heating. The independent Committee on Climate Change (CCC) has estimated that with the continued support of the people, it could easily provide an upside of 18% easily.

It is expected that the Green Heat Network Fund will be delivering an estimated 10.3Mt of carbon savings in the next 30-year time frame. It will be like the equivalent of taking away 4.5 million cars in England from the roads for one complete year.


Latest in Advice & Opportunities