The Department of Energy Security and Net Zero (DESNZ) continues to drive forward with the Warm Homes: Social Housing Fund (WH:SHF), supporting the crucial initiative to upgrade social housing across the country. The overarching Warm Homes Plan aims to lift over one million households out of fuel poverty and supports an area-based approach with mixed tenure blocks and terraces eligible, as long as 30% of the homes are social. Shared ownership homes also fall under this category.
WH:SHF Wave 3 represents a significant milestone as the first scheme launched under the Warm Homes Plan, targeting the upgrade of social housing stock to meet Energy Performance Certificate (EPC) band C standard. The funding is designed to create energy efficient homes and support the reduction of carbon emissions and fuel poverty.
What has changed?
Previously the Social Housing Decarbonisation Fund (SHDF), WH:SHF sets out two application routes for this scheme – Strategic Partnerships and the Challenge Fund
Those that have previously delivered successfully via previous waves, and meet the Strategic Priorities set out by the scheme, are able to access funding through a Strategic Partnership. This is to support delivery at scale and allows capable organisations to deliver ambitious and innovative retrofit projects.
The Challenge Fund is suitable for all providers and guarantees funding if the minimum requirements of the scheme are met. This is caveated that the full amount may not be awarded if the scheme is oversubscribed, and the application must include a minimum of one hundred eligible social homes currently at EPC D-G. Consortiums are encouraged for smaller landlords.
With one of the strategic aims to lower household energy bills, insulation still plays a big part in this scheme. PAS2035 is still in place and there is a cap of £7,500 of grant funding per home per application, although this is separate from the cost caps for low carbon heating measures.
It is worth noting that applicants still have to co-fund any application with at least 50% of total eligible costs to be provided by the landlord.
There is a new, optional, low carbon heating element to the scheme offering £20,000 of unmatched funding per home to install low carbon heating measures and associated energy efficiency measures. This includes Solar PV panels and increased insulation). This new incentive is for homes on the gas grid and up to 10% of homes in the application can be included. Homes off the gas grid have a £7,500 cost cap per application.
Funding of up to £1.25 billion has been allocated for this wave. The government is also set to open a consultation on proposals for private and social rented homes to achieve EPC C or equivalent by 2030.
How can we help?
At City Science, we have developed several solutions that could support you in delivering retrofit projects funded by WH:SHF.
- Advanced Analytics Platform: Our street-by-street and house-by-house investment modelling allows for precise, data-driven decision-making. Developed through retrofit programmes, informed by real-world cost data, and rigorously tested, our solution provides strategic edge to maximise the benefits from your overall investments.
- Cutting-Edge Recommendations Engine: We leverage the latest Home Energy Model (SAP 11) to provide tailored retrofit recommendations for individual properties. Recommendations can be provided fully-remotely or combined with a digital survey or in-home monitoring to enhance accuracy.
- Smart Monitoring: Next generation SMETER technology offers real-time insights into energy performance to enable improved accuracy at the design stage, to provide post-installation monitoring or provide continuous optimisation based on occupant behaviour.
Next Steps
- Free Consultation: Our team can provide a free Discovery consultation to help understand where you are on your retrofit journey and provide recommendations unique to your situation.
- Knowledge Sharing: Our experts would be happy to share our learnings from the work we have completed with DESNZ and Innovate UK, including insights on the future of EPCs, financing net zero, and how our One-Stop-Shop models can simplify the entire process for you and your tenants.
- Digital Pilot: Experience our retrofit recommendations engine and digital tools firsthand through a pilot project.
To arrange any of the above, reach out to the team at info@cityscience.com