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. It also reduces the fire risk to the buildings and the risk of pollution to air soil and water

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 heat exchanger and related piping and valves connecting the network. 
With district energy a single unit requires on-site maintenance and thus contributes to lower annual maintenance contracts than multiple units.

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