A Refurb and Retrofit Guide to Wave 3 WH:SHF

You Can Read The Guidance Now

The Next Wave of WH:SHF:

The Warm Homes Social Housing Fund (WH:SHF) is back with Wave 3, building on the successes of previous rounds while introducing new features and priorities. The scheme continues to focus on retrofitting social housing across England, aiming to reduce fuel poverty, carbon emissions, and support the UK's journey to Net Zero by 2050. Here’s a comprehensive guide for applicants looking to participate in this latest wave.

Key Updates in Wave 3

Application Routes: New Strategic Partnerships and Challenge Fund Options
- Challenge Fund: Guarantees funding for applications meeting minimum criteria (subject to scheme limits). Phased delivery provides flexibility in project execution.
- Strategic Partnerships: Designed for experienced applicants aiming for large-scale, innovative projects with reduced reporting requirements and higher autonomy.
- Benefit: Applicants can now align with a route that fits their scale and expertise, a shift from Wave 2's more uniform application process.
Extended Delivery Timeline
- Projects must complete by September 30, 2028, with all grant funds spent by March 31, 2028. This allows for greater project scalability.
New Cost Caps and Funding Models
- Base Cost Cap: £7,500 grant funding per home, averaged across the portfolio.
- Off-Gas Grid Uplift: Additional £7,500 available for homes installing low-carbon heating.
- On-Gas Grid Incentive: Up to 10% of homes can receive a £20,000 grant for low-carbon heating installations, a new option not requiring co-funding.
Increased Flexibility for Non-Social Homes
- The threshold for mixed-tenure blocks is now 30% social housing (down from 50% in Wave 2), enhancing inclusivity for retrofitting mixed-tenure properties.
Eligible Measures
- Enhanced focus on low-carbon heating technologies, insulation, and solar PV installations. Fossil fuel-based heating systems are explicitly excluded.
- PAS 2035:2023 compliance remains mandatory for projects, ensuring adherence to quality and safety standards.
Revisiting Previously Retrofitted Homes
- Homes from Wave 1 or Demonstrator can be re-treated under Wave 3 but only for low-carbon heating installations.

What Has Stayed the Same?

Focus on EPC Band C: Homes must aim to meet or exceed EPC Band C where feasible within cost caps.
Resident Engagement: Applicants must prioritize transparent communication and support for tenants during retrofit works.
Co-Funding Requirement: A minimum 50% co-funding contribution is required, excluding the on-gas grid incentive homes.

Changes Applicants Should Note

Performance Standards: Wave 3 removes the 90/kWh/m²/year space heating demand target, offering applicants greater flexibility in achieving outcomes within cost caps.
Data and Reporting: Emphasis on TrustMark lodgement and reporting ensures robust project monitoring.
Strategic Partnerships’ Added Value: These partnerships foster long-term collaboration with DESNZ and provide opportunities for shaping future policy directions.

Timeline for Applications

Applications open: End of September 2024
Deadline: November 25, 2024
Project notifications: Early 2025

Advice for Applicants

Evaluate Project Scope: Smaller landlords should explore consortium opportunities or utilize the RISE service for support.
Engage Residents Early: Ensuring tenant buy-in will be key to smooth project delivery.
Leverage New Funding Options: The on-gas grid incentive provides a valuable opportunity to pioneer low-carbon heating in gas-reliant homes.

Wave 3 of the WH:SHF builds on lessons learned while aiming to scale up the decarbonization of social housing. With expanded options for funding, timelines, and eligible measures, this wave presents exciting opportunities for social housing landlords to lead the way in energy-efficient retrofitting. For more details and support, visit RISE Retrofit.