Capital grant · Updated 12 May 2026

Green Heat Network Fund — solar plus heat networks

Green Heat Network Fund 2026 — DESNZ capital grants for low-carbon heat networks including solar thermal and solar PV plus heat pump configurations.

Last reviewed 12 May 2026 2 min read By Grants directory
Free eligibility check   How to apply

Overview

The Green Heat Network Fund (GHNF) is the UK's main capital support programme for district heating — networks of insulated pipes that deliver hot water or steam from a central energy centre to multiple buildings. The GHNF replaced the earlier Heat Networks Investment Project (HNIP) and is funded by DESNZ to a total of £270 million over 2022-2025, with continuation funding expected.

Direct solar relevance is niche but growing. The GHNF supports projects that integrate solar PV with heat networks in two main ways: (a) using rooftop PV to power the heat pump that drives the network's hot water production, and (b) installing dedicated solar thermal arrays for low-temperature network priming. For commercial property owners developing or extending district heating — primarily new-build masterplans, university campuses, hospital campuses, and large commercial estates — the GHNF can substantially reduce the capex of the wider scheme.

Key facts at a glance

Headline grant rateUp to 50% of capex
Typical award size£500,000 – £30 million
Programme nameGreen Heat Network Fund (replaced Heat Networks Investment Project)
Total fund value£270m over 2022-2025; continuation expected
Eligible nationsEngland (Wales has parallel arrangements)
Solar relevancePV + heat pump combinations; solar thermal on hot-water heat networks

Eligibility criteria

  • Project must be a heat network or part of a heat network — multiple buildings connected via insulated pipework.
  • Must use low-carbon heat sources — typically heat pumps, biomass, waste heat or solar thermal. Solar PV qualifies as part of the energy supply mix, not as the primary funded technology.
  • Network must be technically and commercially viable — DESNZ scrutinises the business case rigorously.
  • Public sector or private sector operators both eligible. Special-purpose vehicles common.
  • Subsidy control rules apply at scale.
  • Pre-application Expressions of Interest required.

How to apply

Step 1 — Engage a heat network specialist consultant.

GHNF applications are technically complex; most successful applicants use specialist consultants.

Step 2 — Develop the heat network feasibility study.

Typically RIBA Stage 2 equivalent. Covers heat demand profile, network design, energy centre location, technology mix.

Step 3 — Submit Expression of Interest.

Short-form submission — eligibility and headline business case.

Step 4 — Develop the full application.

Includes detailed engineering design, financial model (typically 25-40 years), procurement strategy, environmental impact assessment.

Step 5 — DESNZ commercial & technical due diligence.

Including Triple Point as the investment manager. Can take 3-9 months.

Step 6 — Grant Funding Agreement.

Successful awards have detailed milestone schedules and KPI reporting.

Step 7 — Construction and commissioning.

Grant paid in arrears against verified milestones.

Watch-outs and pitfalls

  • GHNF is not a solar grant. PV is funded as part of a wider heat network case. Standalone solar applications will be rejected.
  • Heat network economics are complex. Most GHNF applications need 18-30 months of feasibility work before applying.
  • Subsidy control rules for large infrastructure can require notification under the UK subsidy control regime.
  • Heat metering and customer billing arrangements are heavily regulated under the Heat Network (Metering and Billing) Regulations. Don't underestimate the operational compliance burden.
  • Future heat network zoning. The Heat Networks (Zoning) Regulations are due in 2026 — within zones, connecting to the network may become mandatory for certain buildings. Check your local heat network zoning plans before investing in standalone heat solutions.

Stacking with other grants and reliefs

Most successful 2026 commercial solar projects use a combination of schemes — this is where independent advice earns its keep. Green Heat Network Fund — solar plus heat networks typically combines well with:

Sources & further reading

Donovan Fawcett · Director, SEO Dons Ltd Twelve years in UK commercial solar SEO and grant advisory. Editorial policy & independence.
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FAQs

Frequently asked questions

What is Green Heat Network Fund — solar plus heat networks?

The Green Heat Network Fund (GHNF) is the UK's main capital support programme for district heating — networks of insulated pipes that deliver hot water or steam from a central energy centre to multiple buildings. The GHNF replaced the earlier Heat Networks Investment Project (HNIP) and is funded by DESNZ to a total of £270 million over 2022-2025, with continuation funding expected.

Is the scheme open for applications in 2026?

As of May 2026, the scheme's funding status is: Phased applications — Phase 2 closed; Phase 3 expected 2026. We re-check application windows monthly — if this is critical to your planning, request an eligibility check for the current programme status.

How much can a UK business get?

Typical award range: Up to 50% of capex on qualifying heat network projects. The size of any individual award depends on project capex, sector eligibility, match funding available and the scheme's per-applicant cap.

Who administers the scheme?

Department for Energy Security & Net Zero (DESNZ); Triple Point Heat Networks Investment Management. Applications are submitted through the administrator's process — we link the relevant gov.uk and scheme pages at the bottom of this guide.

What are the biggest pitfalls applicants fall into?

GHNF is not a solar grant. PV is funded as part of a wider heat network case. Standalone solar applications will be rejected. Heat network economics are complex. Most GHNF applications need 18-30 months of feasibility work before applying. Subsidy control rules for large infrastructure can require notification under the UK subsidy control regime.

Check if your business qualifies

Free 60-second eligibility check tells you whether Green Heat Network Fund — solar plus heat networks applies — and which other schemes can stack.

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