The UK Government has announced a new scheme for consumers and non-domestic users such as hospitals, schools and council buildings to participate in an innovative heat networks project.

The Heat Networks Investment Project (HNIP), which will launch in the Autumn, aims to lower bills for both consumers and non-domestic customers and play a key role in lowering carbon emissions.

The £320 million scheme forms part of the Clean Growth Strategy and will offer grants and loans to both the public and private sectors for heat networks serving two or more buildings.

The government says for residents in flats, heating networks could cut costs by as much as 30% compared to alternatives such as individual gas boilers.

It believes heat networks could meet up to 17% of heat demand in homes and up to 24% of heat demand in industrial and public sector buildings by 2050.

Energy Minister Claire Perry said: “Today’s announcement creates a route to market for innovative energy projects across the country and demonstrates a key objective of the Clean Growth Strategy; to help deliver technologies that can lower bills, cut carbon and improve the quality of life for communities across the country.”