The Green Heat Network Fund (GHNF) is a government initiative designed to accelerate the decarbonisation of heating in England. This capital grant scheme plays a crucial role in supporting the development of new, low and zero-carbon heat networks and the expansion and decarbonisation of existing networks.
At Sustainable Energy, we have provided full application support to secure over £35m of capital funding through GHNF (and its predecessor Heat Networks Investment Project (HNIP)) for the development of heat networks across the UK. Recent successful projects include Solihull Town Centre Energy Network, South Kilburn District Heat Network, heat networks in Handforth and Seaham Garden Villages and multiple Bristol heat networks (Old Market, Temple, Bedminster and Redcliffe). These projects demonstrate our hands-on experience in guiding complex schemes through the competitive GHNF application process.
An Overview of the Fund
The GHNF is a capital grant programme with a total value of £288 million, which builds on the success. It provides financial support for the commercialisation and construction of heat network projects that utilise low and zero-carbon (LZC) heat sources. This includes a diverse range of technologies, such as heat pumps, geothermal energy, and waste heat from industrial processes.
The scheme’s core objectives are to:
- Achieve Carbon Savings – by incentivising the use of low-carbon heat sources, to significantly reduce the carbon intensity of heat supplied to customers
- Stimulate Market Growth – by increasing the deployment of LZC technologies, helping to grow and mature the heat network market
- Contribute to Market Transformation – by driving positive changes across the supply chain, preparing the sector for future decarbonisation targets and regulation
Who is Eligible for Funding?
The GHNF is open to a wide range of organisations in the public, private, and third sectors in England. Eligible applicants are typically those responsible for the development of new or existing heat networks, including:
- Local authorities and public sector bodies
- Registered private companies
- Third-sector organisations, such as registered charities
It is important to note that individuals, households, and sole traders are not eligible to apply.
Navigating the Application Process
The GHNF application process is competitive and involves a series of funding rounds. Unlike a rolling application process, the fund operates on specific application windows. This means that applications are collected over a set period and then assessed together by an Investment Committee after the deadline. Your project’s success is therefore based not just on meeting eligibility criteria, but on how it compares to other applications in the same round. This approach ensures that the most impactful and robust projects are selected for funding.
To apply, prospective applicants should:
- Submit an Expression of Interest: This is a recommended first step to gauge a project’s suitability for the fund.
- Request the Application Pack: The official application pack, which includes detailed guidance and forms, can be requested from the GHNF delivery partner.
- Complete a Detailed Application: The application requires a comprehensive techno-economic model and supporting documentation to demonstrate the project’s alignment with the GHNF objectives and gated metrics.
- Submit the Application: All necessary documents must be submitted by the deadline for the relevant funding round.
The grant provides up to <50% of the estimated eligible commercialisation and construction costs. Round 10 of the GHNF is now open for applications, with a closing date of 7th November 2025.
Sustainable Energy’s Role in GHNF Projects
At Sustainable Energy, our role as an independent technical partner is to help clients successfully navigate the complexities of grant funding applications and project delivery. Our extensive experience in identifying and developing renewable and low-carbon energy solutions is directly applicable to the GHNF.
Our services, which cover the full project lifecycle, support every stage of a GHNF application and project delivery, including:
- Feasibility and Masterplanning: Identifying new LZC heat network opportunities, and LZC heat sources to decarbonise existing networks, developing concept designs, and assessing technical and economic network viability
- Techno-Economic Modelling: Developing the detailed models required to demonstrate carbon savings and economic feasibility for a successful grant application
- Business Case Development: Developing outline and full business cases which are used to secure heat network investment (strategic, economic, commercial, financial, management cases)
- Detailed Design and Procurement: Developing detailed design and specification for the optimum low-carbon heat network. Developing contractor procurement packs (for construction and operation phases) and supporting with contractor appointment and contracting
- Due Diligence: Providing robust technical and commercial support throughout construction and commissioning to ensure the completed network meets technical and commercial objectives
Final Thoughts
The Green Heat Network Fund provides a financial lifeline for organisations committed to decarbonising their existing heating infrastructure or delivering low-carbon heating solutions for future developments, ensuring long-term energy security and contributing to the UK’s net-zero ambitions.
For expert support with your GHNF application and project delivery, please contact us.