Baxi research finds social housing providers and local authorities have good experience of heat networks, but regulatory uncertainty and stretched capacity are slowing delivery.

  • 84% of respondents reported having a good or very good experience of heat networks, and 82% have a high or very high understanding of them.
  • Only 24% were aware of heat network zoning regulations, the least recognised of the six regulations tested.
  • 76% were confident in their plans for engaging with heat networks and the associated regulations, but housing associations (85%) were more confident than local authorities (68%).
  • Organisations want manufacturers to act as lifecycle partners, predominantly regarding technical support, rather than just equipment suppliers.

Baxi surveyed 100 housing associations and 102 local authorities and councils responsible for managing or operating heat networks this summer, alongside in-depth interviews with five housing associations, a heat network consultant and heat network contractor. As an active solutions provider in this space, Baxi is keen to understand how these sectors are engaging with heat network policy, regulation and funding.

Heat networks are expected to meet 20% of UK heat demand by 2050, with an interim target of 7% by 2035, up from around 3% today. As local authorities and housing associations own and manage approximately two-thirds of all heat networks in the UK, these sectors will be central to that growth. Encouragingly, the survey found a sector that knows its assets well and is broadly positive about them, with housing associations reporting a slightly better experience than local authorities (88% against 80%).

However, that picture comes with important qualifications. Interviewees consistently described organisational understanding as strong among a small number of lead individuals but considerably weaker across the wider organisation, suggesting sector confidence may rest on a narrower skills base than the survey alone implies.

Awareness of regulation is uneven. Metering and billing regulations were best recognised at 40%, followed by the Heat Network Technical Assurance Scheme (HNTAS) at 38%, while zoning trailed at 24%. Interviewees drew a clear distinction between knowing a regulation exists and understanding what it will require in practice and identified HNTAS as the policy most frequently disrupting forward planning.

Organisations are prioritising getting more from the assets they already have. Improving energy monitoring, heating controls and building management systems was the most common plan at 42%, ahead of developing or connecting new networks (40%) and upgrading existing ones (33%). Interviewees pointed to commercial viability, limited internal capital and uncertainty over future compliance standards as the main barriers to progress.

Funding awareness is reasonably high, though each sector is most familiar with the scheme built for its own circumstances – 61% of local authorities knew of the Green Heat Network Fund against 43% of housing associations, while 56% of housing associations knew of the Heat Network Efficiency Scheme (HNES) against 44% of local authorities. Interviewees were clear that access depends on more than procedural knowledge: match funding, technical evidence, internal capacity and budget cycles determine whether funding becomes a deliverable project.

Respondents also want more support from manufacturers. Alongside technical support during planning (29%) and operation (30%), around a quarter sought help with funding applications (26%), business cases (25%), regulatory compliance (25%) and staff training (25%). Interviewees asked manufacturers to move beyond equipment supply towards lifecycle partnership, including early design input, training, commissioning support, maintenance guidance and timely resolution of defects.

Baxi understands the importance of efficient, reliable and affordable heat networks for social housing residents and local communities and is committed to supporting its growth across the UK.

It has set out four policy recommendations for government to remove the barriers slowing progress:

  • Protect and expand HNES funding for optimisation studies, asset data and physical improvement works.
  • Provide a clear and phased HNTAS implementation roadmap, with realistic transitional periods for existing networks.
  • Create recognised heat network skills and competency pathways covering technical and regulatory functions.
  • Protect residents from unaffordable metering, billing and compliance costs, with tailored safeguards for vulnerable households.

Jeff House, Director of External Affairs and Policy at Baxi, said: “It’s encouraging to see from our research that there is high confidence in heat networks amongst social housing providers, but we’d like to see the government remove the barriers slowing progress. Our ask is for government to provide a clear, phased route to compliance, protect and expand improvement funding, build recognised skills pathways, and ensure that additional costs do not fall unfairly on residents.”

Download the report here.