On Monday 13th May 2024, the Department for Energy Security and Net Zero (DESNZ) released draft guidance on Wave 3 of the Social Housing Decarbonisation Fund (SHDF).

In this blog, we provide valuable information to social landlords considering putting together a bid when it opens to applications for Wave 3 of the SHDF.

 

The Social Housing Decarbonisation Fund

With the UK having some of the oldest leakiest and least energy efficient housing stock in Europe and according to government, homes account for 15% of the UK’s carbon emissions, the Conservative government committed to an investment of £3.8 billion through the Social Housing Decarbonisation Fund over a 10-year period, to improve the energy efficiency of social rented homes.

The SHDF green initiative aims to improve the energy performance of a large proportion of the 1.2 million social homes that are currently below Energy Performance Certificate (EPC) Band C.

The SHDF programme sets out to:

• Tackle fuel poverty
• Improve the EPC rating of social homes to Band C or above.
• Help to achieve the government’s net zero 2050 target by reducing carbon emissions within the social housing sector.
• Reduce resident’s energy bills and improve comfort levels.
• Stimulate growth through adoption of green skills and jobs in the energy efficiency sector.

The Social Housing Decarbonisation Fund aims to fund energy-saving measures including insulation, heating, and renewable upgrades.

Since the launch of the SHDF programme, there has been the Demonstrator fund, Wave 1, 2.1 and most recent Wave 2.2.

 

Social Housing Decarbonisation Fund Wave 3

Additional funding has been allocated to fund more energy efficiency projects between 2025 and 2028. The draft Wave 3 SHDF guidance was published by DESNZ May 2024 and it is expected to be open to applications in summer 2024.  The delivery window runs to September 2028 with SHDF grant spend to March 2028.

According to the government’s SHDF draft guidance, the lessons learned from the SHDF Demonstrator and SHDF Waves 1, 2.1 and 2.2 have been incorporated into the design of Wave 3.

This funding will be awarded through two application routes:

• The Challenge Fund: all applications that meet the minimum standards of the scheme will be awarded funding and this route supports a phased approach to delivery.  Challenge Fund applications must include a minimum of 100 eligible social homes at EPC band D – G per bid.  The exception to the rule regarding the minimum number of properties is if you are an applicant that owns fewer than 100 homes.
• Strategic Partnerships: this route can be considered by Social Landlords who have a proven track record of successful delivery at scale retrofitting 1000s of properties. Both individual and consortium applications will be allowed through this application route.

Retrofit Information Support and Expertise (RISE)

Social Landlords are encouraged to start preparing and building partnerships now, prior to the application window being open this summer.

RISE, formally known as the Social Housing Retrofit Accelerator, is a free support service funded by the Department for Energy Security and Net Zero (DESNZ), providing guidance and support to social housing landlords looking to deliver retrofit programmes and considering putting together a bid for Wave 3 of the SHDF.

Their website is packed full of informative content, podcasts and webinars to sign up to, which are all designed to educate registered social housing providers on the SHDF Wave 3 initiative and help guide through the application project.

Here’s a useful link to the resources on the RISE website.

 

Dyson Energy Services – a partnership you can count on

Here to support social landlords

Dyson Energy Services can work in collaboration to support social landlords with their Wave 3 bids, offer advice on the best energy efficiency solutions for their housing stock and tailor a delivery programme that will maximise funding.

With over 40 years’ experience in the energy efficiency sector, Dyson Energy Services is a partnership you can count on.

• Dyson Energy Services has an experienced multi-skilled directly employed workforce readily available to mobilise on retrofit programmes across the UK, already installing 1000s of energy-saving measures each year.
• We provide a full managed turnkey service, from Retrofit Assessments Coordination and Design to PAS 2035 standards, to installation and customer care.
• Inhouse capabilities to install a comprehensive range of energy-saving measures to provide social landlords with a whole house approach to their energy efficiency requirements.
• We have an enviable reputation for setting the standards in delivering excellent customer service and quality for our clients, with an extensive range of accreditations and affiliations with industry bodies.
• Skills Development initiatives – we partner with further education providers and charities to support Green Skills Bootcamps and prepare the next generation for green jobs and stimulate growth and opportunity in the area we are working in. Ian Morrall, Managing Director at Dyson Energy Services, is a proud member of the Kendal College Green Skills Advisory Board.

 

Dyson has a proven track record of delivering on SHDF projects

Dyson Energy Services has a proven track record of delivering on multiple SHDF projects, including for clients South Lakes Housing and Hyde.

Don’t just take our word for it, find out how we not only achieved, but exceeded on Year One of a SHDF Wave 2.1 project with South Lakes Housing.

Dyson Energy Services with client South Lakes Housing, recently celebrated the successful completion of the delivery of Year One of a £7.2m two-year eco-friendly home improvement initiative. This initiative was funded by the Department of Energy Security and Net Zero’s Social Housing Decarbonisation Fund (SHDF) Wave 2.1.

One year into delivery, 367 properties from the initial Year One target of 362 homes, have received energy-efficient home improvements. Residents are now benefiting from savings on energy bills as well as enjoying warmer and better ventilated homes, which are crucial for health and wellbeing.

 

Contact us

We would encourage Social Landlords eager to bid for this next wave of SHDF, to contact Dyson Energy Services to discuss the bid, explore a partnership and to find out about the various projects being delivered across the country.