We’re thrilled to see the latest guidance from the Department for Energy Security and Net Zero (DESNZ) regarding Wave 3 of the Social Housing Decarbonisation Fund (SHDF).
This guidance is a crucial step forward in our collective journey towards achieving Net Zero by 2050.
Key Points
1. Draft Guidance Released: While applications are not yet open, DESNZ has released draft guidance for Wave 3 of the SHDF. This allows potential applicants to review and provide feedback before the final guidance is issued.
2. New Routes for Funding Access: Wave 3 introduces two new routes for accessing funding: the Challenge Fund and Strategic Partnerships. The Challenge Fund is designed to accommodate the majority of grant recipients, while Strategic Partnerships cater to organisations with a proven track record of large-scale delivery.
3. Preparing for Applications: Potential applicants are encouraged to start preparing and building partnerships now to ensure a smooth application process.
What’s New in Wave 3 Application Routes
Two routes are available for funding access: Challenge Fund and Strategic Partnerships. Each route has specific criteria and benefits.
Delivery Window: Projects funded under Wave 3 must be completed by September 30, 2028, with all grant funding spent by March 31, 2028.
Performance Outcomes: Grant recipients are expected to improve homes to EPC C standards, with flexibility for exceptional cases.
Cost Caps: Wave 3 introduces a single cost cap for energy efficiency measures, simplifying the funding process.
Low Carbon Heating Incentive: New incentive options are available for installing low carbon heating measures, including a grant for homes on the gas grid.
EPC C+ Homes: Homes already at or above EPC C can now be included in applications for low carbon heating measures.
Mixed Tenure and Non-Social Homes: Eligibility criteria have been revised to include mixed tenure blocks/terraces and remove the requirement for owner contributions.
Revisiting Homes: Homes treated in previous waves may be eligible for treatment in Wave 3, subject to compliance with eligibility requirements.
Minimum Number of Homes: Challenge Fund applications must include a minimum of 100 eligible social housing properties, with exceptions for small social housing landlords.
Approach to KPIs and Milestones: Revised KPIs and milestones ensure accountability and progress tracking throughout the project lifecycle. SHDF Wave 3 presents an exciting opportunity for social housing landlords to enhance energy performance and contribute to the Net Zero agenda. By familiarising yourself with the guidance and preparing early, you can position your organisation for success in accessing funding and delivering impactful projects.
For more information and support, visit the DESNZ-established Technical Assistance Facility, RISE – Retrofit Information, Support, and Expertise.
Stay tuned for further updates and the official opening of applications for Wave 3 of the Social Housing Decarbonisation Fund!
