Social Housing Decarbonisation Fund

Applications for the Social Housing Decarbonisation Fund Wave 2.2 have now closed and we look forward to installing energy efficiency measures at the homes of all successful applicants in our local area. We are sure that the measures available will not only reduce the carbon emissions from these homes, but they will also help the occupants to stay warm, healthy and comfortable in their homes and to enjoy lower energy bills.

What is the Social Housing Decarbonisation Fund?

In their 2019 manifesto, the Conservative Party pledged £3.8bn towards improving the energy performance of social housing in the UK. The intention was to focus attention on the worst-performing properties and to support the people living on the lowest incomes, achieving the dual aims of reducing fuel poverty and increasing the comfort and health of the occupants of these properties.

History of the Fund

A Demonstrator was launched in October 2020, with £61m invested in retrofitting over 2,100 homes with energy efficiency measures aimed at improving their Energy Performance Certificate to at least a Band C.

Following on from the Demonstrator was Wave 1, which launched in August 2021. £160m worth of funding was allocated to councils to fund energy efficiency improvements in up to 20,000 properties during the 2021/2022 financial year.

Wave 2.1 came next in March 2023, allocating £778m worth of funding to retrofit up to 90,000 more properties with appropriate energy efficiency measures.

The success of these early waves means that Wave 2.2 was met with eager anticipation, and applications to the scheme closed on 31 January 2024. Next Energy is proud to have delivered thousands of energy efficiency measures under Wave 1 and Wave 2.1, and we are delighted to have been selected to be an authorised installer for Wave 2.2.

We look forward to building on the success of earlier Waves, inspecting social housing properties, making recommendations for energy efficiency improvements, supporting customers in applying for grant funding and installing the necessary retrofit measures to enable people in our local area to live in warm, comfortable and affordable homes.

The Importance of the Social Housing Decarbonisation Fund

The UK's social housing portfolio produces approximately 20% of the country's carbon emissions, so installing energy efficiency measures such as improved loft, floor or cavity wall insulation, efficient boilers and solar panels will not only reduce energy bills for residents, but also help the government to achieve its challenging Net Zero by 2050 target.

Data produced from the earlier Waves suggests that residents whose properties are upgraded under this scheme can benefit from annual energy bill savings. Living in a warm and damp-free home also improves physical, mental and emotional health, so the improvements delivered under this scheme will make a huge difference to the lives of social housing occupants across the country.

Eligibility Criteria

This Fund is aimed at improving the quality of life of vulnerable and low income residents of social housing properties with an EPC of D or below. Although there are no income-related eligibility criteria to satisfy, some councils prioritise retrofitting the properties that are occupied by residents at greatest risk of fuel poverty or who suffer from health-related conditions which can be made worse by living in cold or damp environments.

Properties need not be connected to mains gas in order to be eligible under this scheme, as energy efficient oil boilers, air source heat pumps and solar panels are all considered to be appropriate energy efficiency improvement measures under this scheme, alongside triple glazed windows and extra insulation, both of which can make a dramatic difference to heat and carbon loss, as well as occupant comfort.

How much funding is available?

Every property is assessed on its own merits and the rate of funding allocated will differ based upon the current EPC of the property, the improvements that are necessary and the level of co-funding available from the landlord. Typically, grants will start at £10,000 and not exceed £24,000 per property.

We are Here to Help You

To discuss whether you may be eligible for this or any other government grant scheme, please contact our friendly and experienced team today.