WARM HOMES: SOCIAL HOUSING FUND (WH:SHF) WAVE 3

What is WH:SHF?

WH:SHF is a scheme run by the Department for Energy Security and Net Zero (DESNZ) that aims to upgrade social housing stock in England to EPC band C, in line with the government’s target of all social housing meeting that standard by 2030.

Specifically, it will support the installation of energy performance measures such as insulation, low carbon heat and solar PV in order to achieve more energy efficient homes, reduce carbon emissions and tackle fuel poverty.

It is the best opportunity to social landlords with stock at EPC D or below to secure retrofit funding at scale until 2028.

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Key Details

Application Timescales

  • Bidding window opens: 30th September 2024
  • Bidding window closes: midday on 25th November 2024
  • Successful projects notified: early 2025
  • Grant funding claimable from: 1st April 2025

Format

  • Challenge Fund – for most applicants, seeking to bid individually or as a consortium. Requires a minimum of 100 homes (unless the applicant has fewer than 1,000 properties in their portfolio)
  • Strategic Fund – for applicants or consortiums proposing retrofit projects at significant scale (1,000+ properties)

Eligibility

  • Properties to be brought to minimum band C (possible exception for E-Gs where not possible within cost caps)
  • Homes at or above EPC band C can be included where low carbon heat is installed - capped at 10% of the total bid
  • Mixed tenure blocks/terraces must have 30%+ social homes to be eligible. Non-social homes can access the £7,500 per property grant, but must still be match-funded. Contributions can be sought from owner occupiers and private rented sector landlords/residents. Non-social homes do not need to be D or below or have EPC.
  • Properties treated under wave 2 are not eligible. Properties treated under the demonstrator or wave 1 are eligible for low carbon heat only.

Funding

  • Cost cap of £7,500 for all properties – can be averaged across homes (and consortium members) – must be match funded
  • The ‘off gas grid low carbon heating cost cap uplift’ offers a further £7,500 per off gas property that has low carbon heat installed – can be averaged across homes and must be match funded
  • The ‘on grid low carbon heating incentive’ offers on gas homes installing ASHPs, GSHOs, shared ground loops or heat networks a £20,000 grant that does not require match funding – capped at 10% of the total bid. High heat retention storage heaters also eligible where heat pumps are not suitable (i.e. in electrically heated flats/small dwellings). Cannot be averaged across homes.
  • While capital costs must be match funded, admin and ancillary costs (up to 15% of total project spend) do not. Admin and ancillary costs can cover project management, pre-EPCs, Retrofit Assessors/Coordinators, building works to prepare for installation (i.e. failed CWI removal), high rise IBGs, resident communication and aftercare.
  • Funding from other schemes (such as ECO) can be used on the same property but not on the same measure.

Delivery

  • Delivery window from signing of legal documentation to 30th September 2028
  • A third of the grant to be spent in each financial year – 25/26, 26/27, 27/28
  • Grant funding to be spent by 31st March 2028, co-funding deadline of September 2028
  • For Challenge Fund, funding will be released in phases (maximum of ten)

Supply Chain

  • All installers to be Trustmark and/or MCS accredited
  • Installation to be completed in compliance with PAS2030:2023
  • Applicants encouraged to engage local SMEs as part of their supply chain
  • Eligible measures include insulation, solar PV and low carbon heating
  • Installation, replacement or repair of fossil-fuel based heating systems are not in scope
  • Energy bills must not rise as a net result of retrofit activity

How Can Cornerstone Help?

We can analyse your stock, design your project, contribute costing, help you write your bid and then deliver it all as part of a turnkey solution. We can advise on how to make your budget stretch as far as possible and what DESNZ are looking for in a successful application.

Cornerstone has been bidding for SHDF funding on behalf of new and existing clients since its inception, and for the many predecessor schemes before that. We have a 100% success rate across all our SHDF bids to date.

As we directly deliver a range of insulation and renewable measures, we can guarantee resource for your project and provide excellent value for money. Plus, our exceptional track record of delivery on previous and current SHDF projects will provide DESNZ with confidence in your delivery plans.

Our technical expertise and support with your application is entirely free, where we are appointed your delivery partner. We can be directly procured via an existing framework in full compliance with Public Contracts Regulations.

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Tel: 07753 433832
Email: rebecca@cornerstonelimited.co.uk

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