Warm Homes: Social Housing Fund Wave 3

With the SHDF Wave 2.2 deadline approaching in March 2026, the Department for Energy Security and Net Zero (DESNZ) has released guidance for Warm Homes: Social Housing Fund Wave 3. This initiative targets improving the energy efficiency of over 1.2 million social homes currently below EPC Band C. A total of £1.25 billion in funding will be available to the social housing sector, with applications expected to open this summer. The delivery window extends to September 2028, with SHF grant spending required by March 2028. It is estimated that the Wave 3 funding available will help to retrofit up to 140,000 social homes.

Your trusted contractor

We are a PAS 2030/35 accredited contractor, who have successfully retrofitted over 2,000 properties through Social Housing Decarbonisation Fund Wave 1, 2.1, and 2.2. We are experts in the field, with over 15 years experience installing and maintaining renewable technology and building fabric measures for the UK’s largest Housing Associations, including LiveWest, Curo, Guinness, Moat, Alliance, Abri, and many more.

Our team of experts can support social landlords and local authorities with their bid for Wave 3 funding, and also offer advice and our experience with the best renewable technology and building fabric solutions available, to improve the EPC rating of your housing stock

We can assist and support with…

  • Retrofit assessment

  • Budget proposal

  • Bid applications

  • Measure selection

  • Administration of funding paperwork

  • Framework options for Procuring

  • Retrofit design

  • Retrofit coordination

  • Project delivery

  • Retrofit evaluation

  • Pre & Post monitoring

Through our experience in the successful delivery of SHDF projects we have experienced many approaches, meaning we understand what to avoid ensuring you get the absolute most out of the funding available.

We now have over 80 directly employed engineers ready to deploy to your retrofit project. Thanks to having our own in-house training academy, all of our engineers can be agile and easy up-skilled with any new renewable measures available. Our training academy not only supports our in-house delivery teams, but our Lunch & Learn sessions also provides our clients a space to up-skill, and get hands on with the measures being delivered to their housing stock.

We have our own dedicated PAS Hub team who’s main function is to progress works and manage all related aspects for the hub, they are directly employed allowing us to progress projects through to completion. This removes a reliance on this key element being fulfilled by external parties giving us full control of this function, this brings multiple efficiencies, namely speed, visibility and the ability to govern the pace of our programs.

Our PAS Hub team are central to reducing and mitigating delays on our retrofit programs, their experience allows them to utilise the system ensuring the smooth transition through the various stages of projects. The team are on track for our forecast of uploading in excess of 50,000 documents to the PAS Hub during the SHDF wave 2 program spanning 2023-2025.

Objectives for SHDF

The SHDF supports the installation of energy performance measures in social homes, facilitating the widespread adoption of decarbonised heating systems. The fund seeks to achieve several key goals:

  • Deliver Warm, Energy-Efficient Homes: Upgrading social housing to at least EPC band C will make these homes warmer and more comfortable, especially during the colder months.

  • Reduce Carbon Emissions: By improving energy efficiency and adopting greener heating technologies, the SHDF contributes to the UK’s broader carbon reduction targets.

  • Tackle Fuel Poverty: Enhanced energy efficiency will lower energy bills for tenants, helping to alleviate fuel poverty.

  • Support Green Jobs: The fund is expected to create and sustain jobs in the green energy and construction sectors, particularly in the retrofit industry.

  • Develop the Retrofit Sector: By encouraging the widespread adoption of retrofitting practices, the SHDF will help advance the retrofit sector’s skills and capabilities.

  • Improve Tenant Well-being: Beyond the environmental and economic benefits, the upgrades will enhance the overall comfort, health, and well-being of social housing tenants.

Applying for Warm Homes: Social Housing Wave 3 funding

The draft Wave 3 SHDF guidance was published by DESNZ May 2024, and it is expected to be open to applications in summer 2024.

SHDF Wave 3 offers two primary application routes:

  • Challenge Fund: All SHDF Wave 3 applications submitted through the Challenge Fund should generally include at least 100 eligible social housing properties with an EPC rating of D-G, except for small social housing landlords.

  • Strategic Partnerships: A small number with a proven track record of successful delivery at scale can access funding through a Strategic Partnership.

Details on both routes are available in the scheme guidance.

At Low Carbon Exchange, we specialise in strategic asset management and intelligent funding investment strategies. We prioritise helping landlords gain a comprehensive understanding of their asset performance, the potential impact of additional investments, and the quality of the data that informs crucial investment decisions.

With extensive experience and a strong track record across diverse projects in the housing sector, we are offering our support and expert guidance to Housing providers. For more information or to discuss how we can assist you, please don’t hesitate to get in touch. We’re here to help!

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