District heat networks deliver centrally generated heat to multiple buildings through a system of insulated pipes. Each home connected to the network typically has a small in-home unit to exchange heat with a central plant room that services multiple homes. These plant rooms are typically also able to provide domestic hot water for the homes they serve, negating the need for hot water cylinders.

Approximately 450,000 homes (~2% of homes) are connected to heat networks in the UK, with 30% of these being in London. They are most suited to high-density urban areas. Not all heat networks have a low-carbon heat source, but these can be retrofitted to make use of large heat pumps or industrial waste heat. Homes are typically added to heat networks at the point of construction or as part of a large retrofit scheme, making them a less viable retrofit option for individual homeowners. The UK Government has a specific policy for heat networks, which includes developing heat network zones, with support from the Heat Network Delivery Unit.

Households do not typically pay upfront to connect to heat networks. This cost is financed over long periods with partial costs passed down to households via standing charges. The standing charge may vary depending upon the type of housing, with social housing having reduced charges compared to private housing. The above running costs assume a standing charge of between £313-£389 per year.