Funding

Understanding Funding

There are various funding schemes available that have been established to collectively drive the UK towards a low-carbon, energy-efficient housing stock. These programs also align with the government’s broader goals of alleviating fuel poverty, reducing carbon emissions, and enhancing the quality of life for residents across the country.

Social Housing Decarbonisation Fund (SHDF)

The SHDF is a government initiative aimed at improving the energy efficiency of social housing in England. This fund targets homes with an Energy Performance Certificate (EPC) rating of D, E, F, or G, with the aim of bringing them up to a minimum EPC C standard.

Eligibility: Social landlords, including local authorities and housing associations, can apply for the fund.
Scope: The funding is intended for fabric-first retrofit measures, such as insulation, ventilation, and low-carbon heating systems.
Objectives:
- Reduce energy bills for tenants.
- Improve overall energy performance of the UK housing stock.
- Support the UK’s net-zero targets by reducing carbon emissions.
Application Process: Typically involves bidding rounds where social landlords submit detailed proposals outlining the measures they plan to implement.
Grant Amounts: Vary depending on the scale and scope of the retrofit project, with co-funding often required from the applying organisation.

Energy Company Obligation (ECO4)

The ECO4 scheme, launched in April 2022, mandates large energy suppliers to support the installation of energy efficiency measures in homes across Great Britain.

Target Group: Vulnerable, low-income households and those at risk of fuel poverty.
Eligibility:
- Owner-occupied or privately rented properties with EPC ratings D, E, F, or G.
- Households receiving certain government benefits or classified as being in “fuel poverty.”
Measures Funded:
- Insulation (loft, cavity wall, and solid wall).
- Renewable heating systems (e.g., heat pumps).
- Smart heating controls and energy-efficient doors/windows.
Benefits: Helps reduce household energy bills and carbon emissions while tackling fuel poverty.
Funding Source: Costs are covered by energy suppliers, who are obligated to meet specific carbon reduction targets.

Green Business Improvement Scheme (GBIS)

The GBIS is a relatively new initiative aimed at businesses, including landlords and property developers, to fund energy efficiency improvements.

Focus: Promotes energy-saving measures and low-carbon technologies within commercial and residential properties.
Eligibility: Small and medium-sized enterprises (SMEs) and landlords seeking to improve their property portfolios’ energy efficiency.
Key Features:
- Grants for energy audits and recommendations.
- Financial assistance for installing insulation, renewable energy systems, and more.
- Focuses on properties with poor EPC ratings and encourages improvements that align with the UK’s minimum energy efficiency standards.
Grant Amounts: Varies by region and project type, often requiring co-funding or match funding.
Application: Businesses need to provide detailed plans and demonstrate the impact of proposed measures on energy efficiency and carbon emissions.

EPC Warm Home Grants

The EPC Warm Home Grants are a new initiative designed to assist homeowners and landlords in upgrading properties with poor EPC ratings.

Purpose: Encourage energy efficiency improvements in the private rental and owner-occupied sectors, targeting homes with EPC ratings of D, E, F, or G.
Eligibility:
- Owner-occupied properties.
- Privately rented homes where tenants meet certain income thresholds or benefit criteria.
Measures Funded:
- Fabric-first measures like insulation.
- Heating upgrades to renewable or more efficient systems.
- Replacement of single-glazed windows with energy-efficient alternatives.
Objectives:
- Reduce energy bills.
- Increase comfort levels for residents.
- Help meet the government’s target of upgrading as many homes as possible to EPC Band C by 2035.
Grant Amounts: Funding levels depend on property type, measures required, and household income. Often delivered through local councils or energy companies.
Application Process: Homeowners and landlords apply directly via designated online portals or local government schemes.

Comparative Summary

SHDF is a social housing-focused fund that requires landlords to bid for projects in a competitive process.
ECO4 is supplier-funded and targets vulnerable households, focusing on reducing fuel poverty and emissions.
GBIS supports businesses, including landlords, with grants for energy efficiency improvements, emphasizing EPC upgrades.
EPC Warm Home Grants provide direct financial aid to homeowners and landlords for specific property upgrades to meet EPC standards.

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