Wolverhampton Council strikes a million-pound deal to slash energy bills

The City of Wolverhampton Council has secured £8m from the government to help fund a new heat network on Heath Town estate, hoping to benefit over 1,000 residents by reducing energy costs.

Funding, announced by the Department for Energy Security and Net Zero (DSNEZ) as part of its Heat Network Efficiency Scheme, will contribute to the £19.5m project.

The remainder will be covered by the council’s Housing Revenue Account Capital Programme.

Wolverhampton 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.”

As the estate’s current district heating network has been in place for around 55 years, it is outdated.

The existing coal-powered boiler house is no longer suitable, and its concrete panels have reached the end of their lifespan.

The new system will enhance efficiency by reducing energy consumption, improving return temperatures, and lowering pumping energy costs.

Upgrades will include new control systems, pumps, pipes, and heat interface units (HIUs) for residents.

Construction is set to begin in April and is expected to take two years to complete.