Supply Chain Advice Pack: Heat network zoning

Benefits of heat network zoning

Heat network zoning will fundamentally transform the development of heat networks in towns and cities across England. By designating zones where heat networks are expected to offer the lowest cost solution for decarbonising heat, local communities will have the tool to accelerate the development of heat networks, ensuring that more homes and business can access greener, cheaper heat. The benefits of heat network zoning include:

• Heat networks provide flexibility and security of heat supply with heat provided from a variety of different sources.
• Potential for shared investment and buy-in.
• Potential for economies of scale for materials and labour with more connections.
• Potential for more types of buildings and organisations to engage, provided load variation and flexibilities.

Heat network zoning – a national perspective

As of January 2025, DESNZ have published 21 heat network zoning maps (Heat network zoning maps - GOV.UK). Six of these are for towns and cities who were part of the advanced zoning pilot scheme. These are in Leeds, Plymouth, Bristol, Stockport, Sheffield and two in London. Construction is expected to start from 2026 and DESNZ are encouraging connections from residential properties funded through the Warm Homes programme.

Legislation unfolding from 2024-2025 includes buildings with an annual heat load of 100 Mega Watt hours (MWh) or more will be mandated to connect to heat network if the building is within a defined heat network zone. This is being piloted early 2025.

Warm Homes funding and heat network zoning

The Warm Homes Plan contains reference to key heat network zoning principles.

The key aims of the Warm Homes Plan are to:

• Reduce carbon emissions;
• Deliver warm, energy efficient homes;
• Retrofit homes to reach EPC band C;
• Reduce household energy bills and tackle fuel poverty;
• Support green jobs;Develop the retrofit sector;
• Improve the comfort, health and wellbeing of residents; and
• Provide value for money.

Heat network zoning

Heat Network Zoning is expected to be implemented as a national policy programme in 2025, designed to deliver scaled heat networks in Zone areas identified as being where heat networks offer the lowest cost low carbon heating solution.

Heat Network Zoning was piloted and you can find out more on this here: Heat Networks Zoning Pilot UK GOV Guidance.  

Contractors should be aware of how projects might be impacted by zoning and are encouraged to consider future proofing their heating decarbonisation plans accordingly.  Further details on the Warm Homes Fund Scheme Guidance can be found here: WH:SHF Wave 3 Scheme Guidance.

Preparing for heat network zoning

Consider connecting to heat networks

Retrofit projects need to understand how they may be impacted by heat network zoning.  Homes can potentially connect to a heat network in a zone under the anticipated Zoning legislation. Buildings that meet the following two criteria will be likely required to connect to a heat network:

• A building located in a heat network zone and
• A building with a high heat demand (over a 100MWh per annum) or a communal building.

There are also options to future proof decarbonisation plan. In the public sector, applicants to PSDS are encouraged to consider connecting to a heat network, either now or in the future. If a connection is not currently possible but likely to be developed, schemes should be made heat network-compatible to facilitate and reduce future connection costs.

Making a building compatible with a heat network involves a few steps in the design and build process:

• General building-level measures including suitable heat emitters/underfloor heating system designed for the temperature of the heat network. Appropriate levels of insulation. Variable flow pumping systems to help with lower return temperatures.
• Space for future operating equipment such as heat exchanger, heat meter and filtration, valves, pumps and controls of the system.
• Planning for future pipework connections with routes for foundation level sleeved pipes into the building or plant room.
• Future connection designed to minimise disruption to building users/other in the locality.

This approach may be particularly relevant to Warm Homes Social Housing Fund projects, including larger scale social housing projects (for example tower blocks and apartment buildings) that would represent key anchor loads for a zonal heat network.

The previously issued  Heat Network  Compatibility guidance (Heat Network Compatibility guidance )for the Public Sector Decarbonisation Scheme (PSDS) funding provides relevant guidance that applies to social housing.

The Heat Network Zoning process

The Zoning Authority will be the national body responsible for overseeing all heat network zones across England, including resolving strategic issues. It will also oversee Zone Coordinators, who (along with the Zoning Authority) will be responsible for the identification, delivery and operation of specific heat network zones at local level.

Alongside heat network zoning, comprehensive consumer protection regulation by Ofgem of the heat network sector will be put into place through the Heat Network Market Framework. This will secure fair pricing for domestic customers as well as ensuring transparency, guaranteed standards of performance and other protections, providing market assurance and encouraging investment in the industry.

Useful Links

Government resources:

Heat network zoning: overview - GOV.UK

Heat network zoning maps - GOV.UK

Heat networks regulation: consumer protection - GOV.UK

RISE resources:

Supply Chain Advice Pack: Low Carbon Heat Networks

Supply chain advice pack: Warm Homes: Heat Networks

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