Heat Network Efficiency Scheme: Get Funding to Upgrade Your Heating System

If you are a heat network operator in England, you can apply for the Heat Network Efficiency Scheme bid. But what is it? What do you get if you are successful? And how can you practically apply to the scheme?

In this blog, we will explore the heat network efficiency scheme: Get funding to upgrade your heating system.

At Helec, we proudly offer multiple services to support building projects using renewable, sustainable, and low-carbon technologies. Our 17 years of experience provide us with the expertise to professionally handle the services of design and consultation, all the way to installation and performance monitoring.

What is the Heat Network Efficiency Scheme?

The Heat Network Efficiency Scheme (HNES) is a UK government funding scheme designed to improve the efficiency of existing heat networks. It provides financial support measures to heat network operators in England and Wales whio need to upgrade their systems, reduce carbon emissions, and ultimately lower energy costs for consumers.

What is HNES funding used for?

HNES funding can be used for a range of projects that improve heat network efficiency, including replacing old boilers, district pumps, meters for billing and old unlagged pipework with more modern, efficient alternatives. Furthermore, installing smart meters for efficient metering & billing, or connecting up to local low carbon heating projects, such as communal district heating systems, are just some examples of what funding can be used for.

Who can get HNES funding?

Heat network owners and operators, in either public or private sector organisations are eligible for HNES funding.

What are the benefits of the HNES?

The HNES aims to deliver practical and helpful benefits, including:

Reduced carbon emissions

By improving heat network efficiency, HNES contributes to the UK’s carbon reduction targets.

Lower energy bills for consumers

More efficient heat networks with individual metering & billing facilities can lead to lower heating costs for homes and businesses as you will only pay for what you use.

Improved heat network performance

Upgrading heat network infrastructure can improve reliability and reduce heat losses with simple measures such as pipework insulation and use of intelligent circulating pumps.

Stimulating investment in heat networks

HNES encourages investment in the heat network sector, supporting stakeholders in the development of more sustainable heating solutions.

So now we know the key information about the heat network efficiency scheme, what’s an example of a heating system you can implement through HNES funding?

Can I install communal heating systems through HNES?

Yes. Communal heating systems are well within the remit of the aims of the heat network efficiency scheme. So what exactly is a communal heating system?

What is a communal heating system?

A communal heating system, also known as a district heating system, provides heating and hot water to multiple dwellings, or commercial spaces from a central energy centre. This single plant room serves numerous apartments, offices, or mixed-use buildings.

How does a communal heating system work?

A central energy centre would house boilers and or heat pumps (often including Combined Heat and Power units) to produce space heating and domestic hot water. This is distributed via a network of insulated pipes to individual properties within the development via heat interface units, which in turn will deliver metered heating & hot water when needed.

Where are communal heating systems commonly found?

Communal heating systems are frequently used in:

High-rise apartment blocks
Residential housing schemes
Mixed-use commercial and office developments

What are the advantages of a communal heating system?

Energy efficiency

Compared to individual boilers in each dwelling, communal systems use less energy overall.

Reduced carbon emissions

Using a central plant, especially with cogeneration (CHP), significantly reduces carbon emissions compared to multiple individual appliances.

Cost savings

Communal heating should be more cost-effective for residents and businesses in the long run as you will only pay for what you use through the metering process installed.

Combined Heat and Power (CHP) benefits

CHP units installed within the plant room operate as the lead heating appliance, generating both heat and electricity for site use from a single energy source (normally natural gas), thus further reducing operating costs to billing stakeholders and landlords as the cost to produce is a lot less than the grid tariffs charged.

BREEAM target achievement

Communal heating systems can help businesses meet their BREEAM (Building Research Establishment Environmental Assessment Method) targets for sustainability.

Reduced tenant disruption:

For social landlords, communal systems with HIU’s eliminate the need for regular access to individual dwellings for boiler servicing, reducing disruption for tenants.

What communal heating system solutions does Helec offer?

Helec provides complete, turnkey solutions for high-quality communal heating systems, specialising in site surveys, retrofit, or new build design, off-site construction, site full installation, commissioning, and ongoing plant maintenance.

What services are included in Helec’s turnkey communal heating package?

Helec’s turnkey approach covers all aspects of a communal heating project. This starts with assessing site requirements and determining the optimal solution. Followed up by creating custom designs for maximum efficiency and minimal environmental impact.

Once designs are confirmed, we can build system components off-site for quality control and reduced on-site disruption. We then handle the entire installation, ensuring flawless system operation. In addition, we provide comprehensive maintenance packages through EnSmart systems for long-term support.

What are common issues heat networks experience, and how can they be solved?

Heat networks, while efficient and environmentally friendly, can experience various operational challenges. Here are some common issues and their solutions:

High Heat Losses: Heat loss in the distribution network is a major concern, reducing efficiency and increasing costs.
Solution: Improve insulation of pipes, particularly in underground sections. Optimise pipe sizing and layout to minimise distances. Regularly inspect and repair any leaks.
Inefficient Heat Generation: Outdated or poorly maintained boilers or CHP units can significantly reduce overall system efficiency.
Solution: Upgrade to modern, high-efficiency boilers or applicable CHP units. Implement regular maintenance schedules, including operating efficiency checks and heat exchanger cleaning. Explore integrating complementary renewable heat sources for additional carbon savings.
Hydraulic Imbalances: Uneven distribution of heat can lead to some buildings being overheated while others may be under heated.
Solution: Install balancing valves and intelligent pump controls to regulate flow rates. Conduct hydraulic modelling to optimize the network design. Implement smart metering and control systems to monitor and adjust flow based on demand.
Metering and Billing Issues: Inaccurate or unreliable metering can lead to disputes and financial losses.
Solution: Install accurate and reliable compliant heat meters that bill only what you use,not an average split bill. Implement a robust billing system that is transparent and easy to understand. Consider smart metering for real-time monitoring and billing.
Control System Problems: Faulty or poorly configured control systems can lead to inefficient operation and wasted energy.

Solution: Upgrade control systems to modern, smart technology. Ensure proper programming and regular maintenance of control systems. Implement remote monitoring and control capabilities.

Leaks and Pipework Issues: Leaks can lead to significant heat loss, water damage, and increased operating costs.

Solution: Regularly inspect pipework for leaks and damage. Implement a proactive maintenance program to address potential issues before they become serious. Use high-quality insulated pipe materials and proper installation techniques.

Corrosion: Corrosion can damage pipes and other components, leading to leaks and failures.

Solution: Implement a water treatment & filtering program to monitor & control corrosion. Use corrosion-resistant materials for pipes and other components. Regularly inspect and maintain the system.

Customer Complaints: Issues with heating or hot water supply can lead to customer dissatisfaction & delays in payment .

Solution: Establish clear communication channels with customers. Respond promptly to complaints and address issues quickly. Provide information on how the heat network works and how to report problems.

Integration of Renewable Energy: Many older heat networks rely on fossil fuels.

Solution: Explore integrating renewable energy sources, such as Heat Pumps, Solar Thermal, PV panels in a programme to reduce carbon emissions and improve sustainability.

Explore HNES approved heating systems

We hope to have provided a useful insight into what you may need to know regarding the heat network efficiency scheme. For more information on our financing options, feel free to click the link below for our contact information, so you can start your journey with us today.

The team here at Helec thanks you for taking the time to read our blog. If you have any further questions, you can contact us here. Alternatively, if you want to enquire about our expert services or for more information on our solutions, click here.

Our wide range of services enables us to provide consultation, installation, and maintenance if you require it.

Our expertise provides us the ability to offer the following energy solutions:

Combined heat and power packages

Complete CHP service and maintenance packages
Thermal stores and buffer vessels
Air Source Heat Pumps
Solar thermal systems
Large district residential heating systems incorporating HIU’s

And more. See how Helec can help you today.