BEIS opens bidding for first wave of Social Housing Decarbonisation Fund
Ministers have opened bidding for the £160m first wave of the Social Housing Decarbonisation Fund (SHDF).
The Department of Business, Energy and Industrial Strategy (BEIS) has estimated that this round of funding will see up to 38,000 social homes receive energy-efficiency upgrades such as insulation or new doors, windows and heating systems.
Tenants whose homes have works funded through the scheme will also save around £170 a year on energy bills, the department added.
First promised in the Conservative Party’s 2019 election manifesto, the SHDF is set to be worth £3.8bn over 10 years.
Homes in England with an energy performance certificate (EPC) rating of D or below are eligible for the funding.
Information previously published by BEIS confirmed that housing associations would have to apply as part of a local authority-led bid, but the department has said it expects that to change in future waves.
Bidding is open for eight weeks until 15 October and successful applicants will be announced early next year.
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Business, energy and corporate responsibility minister Lord Callanan said: “Today’s announcement is a vital step forward in eradicating UK fuel poverty and improving the lives and homes of low-income households, all while creating new work for local plumbers, builders and tradespeople who will be building homes fit for our greener future.
“With a real appetite among councils and housing associations to make their homes cheaper to heat and warmer to live in, this investment is putting the power in the hands of the people who know their communities best, allowing the right decisions to be made for each home they manage while ensuring the very best for their tenants and the environment.”
The first wave of the SHDF follows a £62m demonstrator phase launched in March, aimed at testing innovative approaches to retrofitting around 2,300 homes.
BEIS highlighted a project by Clarion Housing Group, Fenland District Council and Tonbridge and Malling Borough Council backed through £4.5m from the demonstrator phase, match funded by the housing association.
The funding is being used to upgrade 115 energy-inefficient Clarion homes in the area, saving residents between £300 and £500 a year on energy bills and creating an estimated 68 jobs and apprenticeships.
In 2019, the UK government committed to reaching net zero carbon by the year 2050, with housing currently accounting for 15% of carbon emissions.
Prime minister Boris Johnson has also set a target to install 600,000 heat pumps a year by 2028 as part of his “10-point plan for a green industrial revolution”.
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