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Double whammy

Heat pumps are at the centre of a £30m double whammy of Government support aimed at boosting the nation’s zero carbon ambition whilst also helping those hardest hit by the cost of living crisis.

The Heat Network Efficiency Scheme is now open to bids from public, private and third sector applicants for capital grant funding to improve existing heat network systems.

There are eight bidding windows scheduled between now and May 2024 but with the amount available currently limited to £30m and the first window closing at the end of March 2023 the advice is to apply early.

Organisations can also apply for up to 100% revenue grant to cover the total cost up to £24,000 of an optimisation study to assess whether proposed improvements would qualify for the capital grant.

Heat networks use distribution systems of insulated pipes that take heat from a central source, such as large-scale heat pumps or heat recovered from industry, to deliver it to a number of domestic and non-domestic buildings.

They are able to unlock large-scale renewable and recovered heat sources, such as large rivers and industrial heat, which would otherwise be inaccessible and have the potential to deliver around a fifth of low carbon heat demand by 2050.

The Government has identified such networks as essential to delivering clean and cost-effective decarbonisation on the road to net zero.

The Bunhill Heat and Power Network in Islington, London, uses waste heat recovered from the London Underground network to provide low carbon heat to local homes, schools and leisure centres.

Whilst in Stockport new heat pump and distribution equipment will improve council house stock on the Lancashire Hill estate – reducing costs for residents.

The latest round of funding builds on previous schemes but this time recognises the impact the cost of living crisis has had and will prioritise support for residential heat networks where ‘customers in need’ live.

For the purpose of the HNES, “customers in need” are defined as: “dwellings supplied heat/energy by a heat network, in which a resident or residents fall into any of the following categories: social housing; low-income housing, customers in fuel poverty; extra care housing; care homes; supported housing.”

Within the £30m set aside for capital grant applications there is no upper or lower limit up to a maximum of 50% costs per scheme.

If you have any queries, please contact us at Go Geothermal on 01388 720228 or sales@gogeothermal.co.uk for advice on the products we can provide to support you.