Social Housing Decarbonisation Fund (SHDF): Wave 3 Draft Guidance
The Social Housing Decarbonisation Fund (SHDF) aims to upgrade social housing properties in England that fall below Energy Performance Certificate (EPC) band C to meet this standard. The fund supports the installation of energy performance measures to:
Deliver warmer, energy-efficient homes
Reduce carbon emissions
Address fuel poverty
Support green job creation
Develop the retrofit sector
Improve tenants' comfort, health, and well-being
Funding and Timeline:
Total Funding Available: Approximately £1.2 billion, including allocations for Devolution trailblazers.
Delivery Window: Until 30 September 2028.
Grant Spend Deadline: All grant funding must be transferred and spent by 31 March 2028. Co-funding can only be used in the final 6 months.
Application Routes:
Challenge Fund
Strategic Partnerships
Detailed guidance for both routes is provided within the scheme documentation.
Eligibility:
Applicants:
Local authorities
Combined authorities
Registered providers of social housing (including housing associations and arms-length management organisations (ALMOs) that are registered)
Registered charities owning social housing
Eligible organisations can apply directly or as the lead of a consortium. ALMOs not registered as providers can apply as part of a consortium led by an eligible organisation.
Properties:
All existing social housing properties below EPC band C, as defined by the Housing and Regeneration Act 2008 (sections 68-70), regardless of building type.
Application Size:
Challenge Fund: Minimum of 100 eligible social housing properties (EPC band D-G), except for small social housing landlords (those managing fewer than 1000 homes), who can apply with fewer than 100 homes. Small landlords are encouraged to reach 100 homes or consider joining a consortium.
Strategic Partnerships: Projects should be of significant scale.
Support and Contact:
For inquiries about SHDF Wave 3, email: shdfwave3enquiries@energysecurity.gov.uk.
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Background:
SHDF Wave 2.2: Allocated up to £80 million from April 2024, building on Wave 2.1.
SHDF Wave 2.1: Allocated £778 million in March 2023, aiming for improvements in approximately 90,000 social homes.
SHDF Wave 1: Supported energy performance improvements in up to 20,000 social housing properties.
SHDF Demonstrator: Improved up to 2,000 homes to at least EPC band C and supported over 1,000 local jobs.