Environment and Energy 8 min read

UK Government Announces £78 Million Investment to Decarbonize Heating Across London, Yorkshire, and the West Midlands

Published on September 23, 2026

John Hartley, the CEO of 1Energy, noted that the ability to deliver heat at a city-wide scale is crucial for making decarbonization affordable. By connecting large-scale institutional buildings like hospitals and schools to a central network, the city can achieve economies of scale that would be impossible with individual building upgrades. This approach not only provides a more cost-effective route to meeting environmental targets but also strengthens the long-term energy resilience of the Bradford area by diversifying its energy sources.

The West Midlands is also a key beneficiary of this funding round, with £3.98 million allocated to support the expansion of the Solihull Energy Network. This project focuses on the Solihull town centre, extending low-carbon heating to a variety of public buildings, schools, local businesses, and a new mixed-use development. The energy for this network is supplied by a centralized energy centre located in Tudor Grange Park, which utilizes a sophisticated combination of Air Source Heat Pumps and a Combined Heat and Power (CHP) system.

The Solihull project is notable for its focus on local economic development and skills training. Construction is scheduled to begin in the summer of 2027, but the project has already made an impact by supporting over 100 apprentice weeks. This focus on training ensures that the local workforce is equipped with the skills necessary to maintain and expand green energy infrastructure in the future. Cllr Andy Mackiewicz, Solihull Council’s Cabinet Member for Climate Change and Planning, described the network as one of the most ambitious low-carbon projects in the region. He emphasized that the additional investment would allow the benefits of the network—both environmental and economic—to reach a wider array of organizations and developments across the town centre.

The Green Heat Network Fund, which provided the capital for these five projects, is a key pillar of the UK government’s strategy to accelerate the deployment of low-carbon heating. The fund is specifically designed to encourage the use of surplus heat from industry and waste, as well as renewable sources like heat from the ground, air, or water. By providing the necessary "gap funding" to make these large-scale infrastructure projects commercially viable, the government is de-risking the transition for local authorities and private investors alike.

As these projects move from the planning and funding stages into construction and operation, they represent a tangible shift in the UK’s energy landscape. The move toward district heating and heat networks is a recognition that the challenge of heating the nation’s buildings cannot be solved building-by-building alone. Instead, by thinking at the scale of cities and regions, these projects offer a path toward a cleaner, more secure, and more affordable energy future. With billions of pounds in follow-on investment expected and thousands of jobs on the horizon, the transformation of the UK’s heat infrastructure is poised to be a defining feature of the country’s industrial strategy for the coming decade.

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