Could you benefit from Wave 3 of the Social Housing Decarbonisation Fund?
 

The Warm Homes: Social Housing Fund (WH:SHF) Wave 3 Scheme Guidance introduces several key differences from previous schemes aimed at improving energy efficiency in social housing:

1. Application Routes: Wave 3 introduces two new routes:
• Challenge Fund: Open to all providers, with guaranteed funding if minimum requirements are met, suitable for phased project delivery.
• Strategic Partnerships: Designed for larger, more experienced landlords or consortiums with a track record of delivery, providing greater autonomy and flexibility with less monitoring.
2. Expanded Eligibility:
• Homes at or above EPC C: Unlike previous waves, homes already at EPC C or above can now be included if they are installing low-carbon heating measures. This is capped at 10% of the total homes in an application.
• Mixed Tenure Blocks: In mixed tenure blocks, as long as 30% of the homes are social housing (previously 50%), non-social homes can now access funding for specific measures like insulation and low carbon heating.
3. Cost Caps: Wave 3 introduces a single base cost cap of £7,500 per home, along with a new off-grid low carbon heating uplift of an additional £7,500, and an on-grid low carbon heating incentive of £20,000 for up to 10% of homes. This cost cap structure is simplified compared to Wave 2, where caps varied based on the starting EPC band or wall type.
4. Performance Outcomes: The 90 kWh/m²/year space heating demand metric from Wave 2 has been removed. While Wave 3 still targets EPC C, there is flexibility for homes that cannot meet EPC C within cost caps to reach the highest possible efficiency level.
5. Support for Small Landlords: Small social landlords with fewer than 1,000 homes no longer need to meet the minimum application size of 100 homes, easing the process for smaller organizations to apply.
6. Low Carbon Heating on the Gas Grid: For the first time, Wave 3 introduces an optional incentive for low-carbon heating systems for homes on the gas grid, allowing up to 10% of homes in an application to receive £20,000 per home for such installations, independent of other cost caps.

Get in touch to find out how we can support your Wave 3 bid submission with our comprehensive end-to-end PAS2035 service, including:
• Stock analysis & selection
• Archetype analysis
• Accurate cost modelling to mitigate the risk of overspend
• Support with a deliverable & efficient retrofit programme

​