The government has invested £1.5 million to boost low carbon heating in homes and businesses.
A total of 24 local authorities across England and Wales have received a share of the funding to develop 27 heating projects.
They will help reduce carbon emissions, potentially lower energy bills in local areas, tackle fuel poverty and create jobs, DECC claims.
Heating networks have the potential to supply between 14% and 43% of energy to buildings in the country by 2050.
Energy Secretary Amber Rudd said: “Developing more home-grown energy is a vital part of our plan to ensure long term energy security for our families and businesses. We are determined to do this by backing innovation, in a way that keeps bills down for consumers and creates jobs and financial security for working people.
“The funding we’re awarding today is part of that plan – the local authorities being awarded this money have shown that they have the right ideas for providing secure, low carbon energy to thousands of homes and businesses across Britain.”