We’re excited to see the latest guidance from the Department for Energy Security and Net Zero (DESNZ) on Wave 3 of the Social Housing Decarbonisation Fund (SHDF).
This guidance marks an important milestone in our shared mission to achieve Net Zero by 2050.
Key Highlights:
- Draft Guidance Published: While applications are not yet open, DESNZ has released draft guidance for Wave 3 of the SHDF. This gives potential applicants an opportunity to review and provide feedback before the final guidance is issued.
- New Funding Access Routes: Wave 3 introduces two new funding routes: the Challenge Fund and Strategic Partnerships. The Challenge Fund will support the majority of grant recipients, while Strategic Partnerships are designed for organisations with a strong track record in large-scale project delivery.
- Application Preparation: Interested applicants are encouraged to begin preparations and establish partnerships early to streamline the application process.
What’s New in Wave 3 Funding Routes?
Two distinct routes are available for funding: the Challenge Fund and Strategic Partnerships. Each has its own set of criteria and benefits.
- Delivery Timeline: Projects funded under Wave 3 must be completed by September 30, 2028, with all grant funding utilised by March 31, 2028.
- Performance Targets: Recipients are expected to improve homes to EPC C standards, with some flexibility in exceptional cases.
- Cost Simplification: Wave 3 introduces a unified cost cap for energy efficiency measures, simplifying the funding process.
- Low Carbon Heating Incentives: New incentives are available for installing low-carbon heating systems, including grants 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 Housing: Eligibility criteria have been updated to include mixed tenure blocks and terraces, and the requirement for owner contributions has been removed.
- Previously Treated Homes: Homes that received treatment in previous waves may be eligible again in Wave 3, provided they meet the eligibility criteria.
- Minimum Home Requirement: Challenge Fund applications must include at least 100 eligible social housing properties, with exceptions for smaller social housing providers.
- KPIs and Milestones: Revised KPIs and milestones will help track progress and ensure accountability throughout the project lifecycle.
SHDF Wave 3 offers an exciting opportunity for social housing landlords to improve energy efficiency and contribute to the Net Zero goal. By familiarising yourself with the guidance and preparing in advance, your organisation will be well-positioned to secure funding and deliver impactful projects.
For more details and support, visit the DESNZ-backed Technical Assistance Facility, RISE – Retrofit Information, Support, and Expertise.
Stay tuned for more updates and the official opening of Wave 3 SHDF applications!