Over £75 million from the Social Housing Decarbonisation Fund (SHDF) has been allocated to offer free energy efficiency upgrades that could save households up to £400 a year.
Secretary of state for energy security Claire Coutinho announced the funding today (18 March), which will be available to 42 councils and housing estates across England to install energy efficiency measures – including heat pumps, insulation and double glazing – in social homes.
“Our Social Housing Decarbonisation Fund is helping families to keep their homes warm and their bills down. We want to support hard-working families to make changes, rather than burdening them with unnecessary costs,” said the energy secretary.
“This funding today will help up to a further 8,800 households save around £400 a year on their energy bills.”
The funding will be open to applicants who have not received support from the Fund’s previous wave.
Decarbonising social housing
Launched in August 2021, the SHDF aims to upgrade social housing stock in England with low Energy Performance Certificate (EPC) ratings to EPC band C.
This will be achieved by funding the installation of energy performance measures, such as installing heat pumps.
Bidding is open to local authorities, combined authorities, registered social housing providers, and charities that own social housing.
Solar panels were also included in the Fund following a £1.8 billion boost announced by the Department for Energy Security and Net Zero (DESNZ) in March last year. The funding was rolled out from April 2023, with upgrades set to take place over the next two years.
The SHDF has been effective in installing low-carbon technologies in social homes, especially heat pumps, which are often avoided by consumers due to fears of upfront costs.
As of June 2023, however, the government confirmed that the SHDF had installed 401 low-carbon heating technologies (146 air source heat pumps and 255 ground source heat pumps) across homes in England.
“Housing associations play a crucial role in helping the country to meet its net zero targets and are already leading the way on energy efficiency, but funding is essential for maintaining this work,” said chief executive of the National Housing Federation, Kate Henderson.
“The sector is committed to providing energy efficient and comfortable homes for their residents that are affordable to heat, and the Social Housing Decarbonisation Fund is key to enabling them to do so; I’ve seen first-hand the difference it has made.
“The funding announced today will give housing associations the certainty and confidence they need to plan and deliver more retrofit projects, tackle fuel poverty, and improve their residents’ homes.”
For homeowners looking to buy heat pumps, the UK government has committed a £1.5 billion funding boost to the Boiler Upgrade Scheme (BUS), almost quadrupling the scheme’s funding pot.
This grant consists of a £7,500 commitment for those looking to install either an air source heat pump or ground source heat pump.