Monitor Hut Heat Network Guide
HNES Round 13 funding: what heat network operators need to know now
If you operate or manage an existing district or communal heat network in England or Wales, there is a new funding window worth looking at now. Round 13 of the Heat Network Efficiency Scheme opened on 17 August 2026, with funding available to investigate and improve heat networks that are performing sub-optimally.
The first deadline is 25 September 2026, when Expressions of Interest must be submitted. Full applications close on 9 October 2026.
At a glance
What does HNES Round 13 offer?
Optimisation studies
Up to 100%
Revenue funding can cover up to 100% of eligible costs for studies investigating why a network is underperforming and what should be improved.
Capital improvements
Up to <50%
Capital grants can fund up to, but not including, 50% of eligible improvement costs, with match funding required for the remainder.
First deadline
25 September
An Expression of Interest is required before applicants receive access to the full application portal.
Where Monitor Hut can help
Not sure why your heat network is underperforming?
Monitor Hut provides paid heat network optimisation studies and surveys to help operators understand how their network is performing, where problems or data gaps exist, and what should happen next.
- Review existing heat network performance and available data.
- Survey metering, monitoring and relevant network infrastructure.
- Identify performance issues, missing information and opportunities for improvement.
- Create a clearer evidence base to support investment decisions and potential HNES activity.
HNES revenue funding can support eligible Optimisation Studies. Whether a specific Monitor Hut study or element of work is eligible will depend on the project and should be confirmed with the HNES Delivery Partner before commissioning grant-funded work.
Who should be looking at HNES?
The scheme is aimed at organisations responsible for existing district and communal heat networks in England and Wales.
That can include local authorities, housing providers, landlords, heat network operators, NHS organisations, universities, private companies, charities and community organisations.
HNES places particular emphasis on reducing customer detriment, with priority given to projects benefiting residential customers in need, including social housing and households experiencing fuel poverty.
You do not need to know exactly what is wrong before applying
This is an important part of HNES. Revenue-funded Optimisation Studies are designed for networks where performance is known or suspected to be poor, but the causes and best improvements are not yet fully understood.
A study can investigate the network, establish its current performance and identify practical, costed measures for improvement.
Current HNES guidance states that Optimisation Study funding would normally sit between £15,000 and £24,000 per application, depending on the scale and complexity of the project.
Why does heat network data matter?
To improve a heat network, you first need to understand what it is doing today. HNES applications therefore consider the availability and quality of existing performance data, metering and data-capture arrangements.
For an optimisation study, that can mean understanding which data is already available, whether it is reliable enough to establish a baseline, and where additional monitoring or investigation is needed.
The same principle applies after improvements are made. Capital-funded projects are subject to ongoing performance reporting, so a reliable monitoring setup also helps demonstrate whether the intervention has actually worked.
Can HNES fund metering?
In some circumstances, yes. HNES may support metering where it improves understanding of network performance, supports project reporting or helps reduce customer detriment.
However, HNES is not intended to fund meters simply because their installation is already a legal requirement. Project-specific eligibility should always be confirmed against the latest guidance.
Round 13
Interested? The first deadline is 25 September
Round 13 opened on 17 August 2026. Organisations considering an application need to submit an Expression of Interest by 25 September 2026. Full applications close on 9 October 2026.
If you already know that your heat network is performing poorly, or you do not have enough information to understand how well it is performing, speak to us about an optimisation study.
Related reading
How strong is the data behind your heat network?
See what happens when a communal heat network exists, but the metering, monitoring and supporting evidence are fragmented across contractors, billing records and spreadsheets.