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