Families set to save money through new and upgraded heat networks

• Families set to save on bills as more than 750,000 homes to get clean, cheaper heating 

• £90 million investment to build networks, repairing faults and reducing waste 

• Government backs mega heat project under and alongside the River Thames unlocking £5 billion investment and up to 2,000 high-quality jobs 

Families are set to save on their energy bills as more than 750,000 homes will benefit from cheaper, cleaner heating.  

Heat networks are a way of heating multiple buildings from a central source such as taking excess heat generated from a data centre, or from a factory via a network of pipes carrying hot water which provide communities with low-cost and efficient heat.   

Residents will benefit from cheaper heating and improved efficiency through brand new low-carbon heating and repairs to faulty pipes, backed by £90 million in government funding, creating more than 2,000 jobs across all projects.  

In London, a mega heat project under and alongside the River Thames will supply 650,000 homes with clean heat, with the potential to benefit over a million residents.   

Backed by £41 million, it will initially transport hot water 25 kilometres each day by electric barges down the River Thames and then via a specially constructed tunnel underneath the river, heating homes and businesses across the city along the route.   

The project, subject to planning consent, will help unlock around £5 billion of investment in London's local heat networks and support skilled jobs in tunnelling, engineering and river transport.  

This is the first of its kind in the UK, designed to make the capital less reliant on gas, with matching systems having operated for decades in cities like Copenhagen, Amsterdam, Vienna and Berlin. 

While in Bradford, 255 homes, a hospital and seven schools and colleges will benefit from cleaner heating and lower bills thanks to an extension of the original heat network in the city, funded by a £9.7 million award. 

Minister for Local Energy and Jobs Martin McCluskey said: 

Clean power and clean heat benefits communities across our country. Building the infrastructure to deliver it is reindustrialising the UK and rolling out cutting-edge energy technology so families can benefit from lower bills, good jobs and energy security. 

And for those already using heat networks, we are upgrading inefficient systems to make sure people get the high-quality, low-cost, reliable heating they deserve.

Other heat networks receiving multi-million-pound investment include: 

• Solihull £3.9 million to extend the existing heat network which serves council buildings, a leisure centre, a theatre and a college, to more buildings across the town. 

• Bexley and Greenwich (London) £11.5 million to help develop what could be the largest heat network in the UK, serving up to 100,000 homes when fully built. 

• Marble Arch (London) £11.4 million to develop a system serving offices, homes, hotels and business around Oxford Street using water-source heat pumps taking energy from the London Chalk Aquifer, creating 200 jobs. 

As well as building new low-carbon heat networks, the government has committed £13.3 million to upgrade 76 inefficient heat networks across England and Wales. 

Improvements will include replacing leaky pipes, insulating pipework to reduce heat loss and replacing interface units in homes allowing residents to have better control of their heating so they can lower their bills. Projects include: 

• Manchester £1 million to improve the heating system for 130 residents living in Cornwall Court in Gorton and Cundiff Court in Levenshulme.  

• London £5.5 million to upgrade the systems serving 1,143 residents at Prospect House in Bermondsey and the Packington Estate heat network in Islington. 

• Wales £374,900 to improve the inefficient and outdated systems at Eschol Court in Newport and Victoria Court in Abergavenny, benefitting the 62 connected residents. 

Meghan Newman, Policy Manager at ADE: Heat Networks said:  

This funding is a clear signal that heat networks matter. To hit our climate goals, we must be just as focused on fixing inefficient legacy systems as we are on building the smart networks of the future.

That's how we cut bills and deliver results for consumers.

Case study: Vega Building, Brighton 

Residents in Southern Housing Group's Vega Building in Brighton are now saving £438 a year on their heating and hot water bills, following improvements made to the heat network serving the building. 

The system had been operating at 35% efficiency, meaning residents in the 40 homes in the building saw energy bills rise in 2022, as global gas prices increased. 

However, following a £200,000 grant through the Heat Network Efficiency Scheme, improvements were made in 2024 to the heat network's engine room, pipework insulation, and new thermostatic radiator valves, with heat interface units also installed. 

This led to the building using 50% less gas, leading to lower bills and improved comfort levels. 

Notes to editors: 

All new infrastructure projects are required to apply for planning consent. Government funding decisions are separate from planning decisions, which will be taken purely on the facts of each individual case through the well-established planning process. 

Full list of HNES projects is here: https://hnes.uk/our-thoughts/hnes-helps-heat-network-residents-to-say-goodbye-to-cold-flats-unpredictable-bills-and-endless-engineer-callouts 

Full list of GHNF projects is here: https://tp-heatnetworks.org/landmark-investment-backs-strategic-heat-infrastructure-for-london