District heating

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Term Definition
District heating

A type of heating system in which heat is piped from a large central heating system (such as a boiler) to multiple units (such as houses or apartments), rather than each unit having its own separate heat source. Often financed via energy service companies (ESCos), district heating systems tend not to become less viable in very energy efficient buildings, given that the low space heating demand means smaller bills payable to the ESCos