City of Wolverhampton Council has secured £8million from the government towards installing a new heat network on the Heath Town estate – reducing energy costs for over 1,000 residents.

The Department for Energy Security and Net Zero (DSNEZ) has announced the funding as part of its Heat Network Efficiency Scheme.

It will contribute towards the critical £19.5million works, with the remainder coming from the council’s Housing Revenue Account Capital Programme.

All of the properties on the Heath Town estate are supplied with heat via the out-dated district heating network that was first installed around 55 years ago and has undergone minor upgrades since.

The existing boiler house was designed to use coal and is no longer fit for purpose and the boiler house pre-cast reinforced concrete panelling has now reached the end of its life and is starting to fail.

The new system will improve efficiency through reduced primary energy consumption, network return temperature and pumping energy costs, following upgrades to the network’s control systems, replacement of pumps and pipework, and the installation of new heat interface units (HIUs) for residents.

Works on the new heat network are expected to start next month (April) and last for two years.

The council’s Deputy Leader and Cabinet Member for City Housing, Councillor Steve Evans, said: “The council’s transformative regeneration of Heath Town has seen extensive demolition of vacant buildings followed by 40 new council homes – the first developed on the estate since the 1960s.

“This is just the first phase of a total of more than 150 new council homes to be built on the estate over the coming years – and is in addition to existing residential blocks undergoing major improvements by Wolverhampton Homes. All new homes will be connected to the district heating system.

“It is important the right infrastructure is in place to support this rejuvenated neighbourhood and this funding from government will enable us to put in place a heat network that is fit for purpose and ultimately reduces energy costs for residents.”