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Second round of government funding will help social housing providers improve energy efficiency of housing stock, in line with Net Zero targets.

In 2019, the UK Government announced its Social Housing Decarbonisation Fund. Worth £3.8 billion, to be spent over a ten year period, the aim of the funding initiative is to decarbonise a significant amount of social housing stock.

The first wave of funding was announced in October 2021 and awarded £179 million to projects that covered around 20,000 social housing properties. The funding will be used by social landlords to carry out energy efficiency upgrades. The aim of the upgrades is to bring social housing stock in line with an Energy Performance Certificate (EPC) rating of C.

The government intended for the fund to help deliver energy-efficient homes, reduce carbon emissions, tackle fuel poverty and develop the retrofit sector. This should also boost the creation of green jobs and improve the living environment for social housing tenants.

Now, the government has announced a second wave of funding to be delivered up to 30 June 2025. Another £800 million has been allocated over the next three years and the fund will be open to applications from late August / early September 2022.

Here are the key aspects of the funding scheme and how you can apply:

What is the fund for?

The funding will help to bring social housing stock up to EPC rating C, and improve the energy efficiency of these homes. This should also lead to reduced carbon emissions.

Who is eligible to apply?

Local authorities, combined authorities, and registered providers of social housing are all eligible to apply for the second wave of funding. Registered providers of social housing include Housing Associations and arms-length management organisations (ALMOs) that are registered providers. During the first wave of funding only local authorities could bid, therefore this is an extension of the scheme.

Social housing properties with an EPC rating below C will be eligible.

How can you apply?

The competition window will open in late August – early September 2022 and bid assessments will end in November 2022. Successful projects will be notified in February 2023.

You can complete a self-assessment through the Social Housing Retrofit Accelerator, which provides access to resources on retrofitting and the SHDF application process.

How can Monarch help?

At Monarch, we are well-versed in energy efficiency and the social housing sector. We have deep expertise in carbon management and we can help you determine a baseline from which to assess your energy data. This will help you to verify the basis upon which you can apply for government schemes, such as the SHDF.

To find out more about our energy efficiency insights, contact us today.

Leila Zerai

Author Leila Zerai

More posts by Leila Zerai

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