Guidance: Financing heat networks in the UK: guidebook

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This guidance outlines some of the issues, risks and opportunities around financing heat networks in the UK, to support the move to a self-sustaining heat network market. It includes:

  • a decision tree for engaging with internal and external funding sources
  • a decision tree for delivery structure and funding sources
  • revenue streams
  • commercial structures (delivery, contractual and funding)
  • business rates
  • accounting implications
  • tax implications (Corporation Tax, VAT, Stamp Duty and Construction Industry Scheme)
  • links to other guidance
  • case studies
  • engagement with the funding market
  • cash flows associated with structures explored

The guidance is aimed at:

  • heat network sponsors
  • heat network developers
  • heat network funders

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