District heating (DH) provided by a central heating system offers a number of short- and long-term economic and technical advantages by eliminating or greatly reducing many of the operating, maintenance and capital costs associated with boilers in individual buildings.

The cost of installing a single heating unit is likely to be considerably cheaper than installing multiple small units in individual dwellings, even allowing for the installation of a a heat exchanger and related piping and valves connecting the network. 

With district thermal energy, a building purchases only the heat it needs to meet its requirements. The levels of efficiency are far greater for a single district unit than multiple smaller units. 

With district energy a single unit requires on-site maintenance and thus contributes to lower annual maintenance contracts than multiple units.  

Central DH systems can convert to the least costly and most available fuel, and thus achieve economies of scale with volume purchasing. Systems are able to take advantage of alternative fuels such as straw, woodchips or methane gas 

Having one unit operating at peak efficiency means less waste and less CO2 and other polutants. Having the option for alternative fuels reduces the dependence on fossil fuels and thus become CO2 neutral.