Housing Developers are likely to have access to government funding for delivery of low carbon heat networks.
In July 2021, the Government launched the Green Heat Network Fund (GHNF) Transition Scheme which aims to support commercialisation of low-carbon heat network projects, including planning requirements, legal costs, contract negotiations, site investigations and tariff structuring. The Transition Scheme supports both existing and new schemes and brings additional £10m funds to the £270m available via the main Green Heat Network Fund from April next year. The GHNF will support commercialisation and construction of low carbon heat networks.
Anyone within the public and private sector can apply.
The capped funding could provide grant of up to 3.33 p/kWh heat delivered over 15 years, with a minimum annual heat demand requirement of 2 GWh (approximately 600 dwellings). For a development of 1,000 dwellings with an annual heat demand of 3,500 kWh per dwelling, a potential maximum funding of £1.7m could be awarded.