The British government is doling out 9.4 million pounds (about 15 million U.S. dollars) to support the development of low carbon heating networks, the country's energy department announced on Friday.
The funding for heat networks means individual homes and businesses wouldn't need to generate their own heat, but would instead share it through a network of pipes carrying hot water. The heat networks are designed to provide more efficient heat to buildings and lower heating bills.
A total of 2.4 million pounds will be offered to 32 communities across England and Wales to build the heat network projects.
To further cut carbon emissions, the British government is also launching a 7-million-pound project in which developers compete for financing to develop new heat network technologies, such as recovering industrial heat or energy from waste.
"Recovering wasted heat from industrial plants or landfill sites means we can heat our homes and businesses more efficiently, as well as helping to drive down energy bills," said Edward Davey, the United Kingdom's Secretary of State for Energy and Climate Change.
"Improving the way we heat our buildings and helping local authorities fund innovative and more efficient ways of supplying lower carbon heat will also reduce our dependency on costly, imported gas," Davey added.
Estimates show that by 2030, heat networks could supply around 15 percent of the demand for heat in Britain and by 2050, 40 percent.