Maximising Your Retrofit Project with LivGreen
Retrofit funding refers to financial support provided to organisations for upgrading their existing systems and infrastructure to improve efficiency and sustainability of properties. This funding can cover a wide range of improvements, from energy-efficient lighting and HVAC systems to advanced manufacturing technologies. By understanding the available retrofit funding, organisations/associations can identify opportunities to enhance their operations without incurring substantial upfront costs.
Moreover, leveraging retrofit funding can position your organisations/associations as a leader in sustainability helping to achieve the governments ambitions of achieving a minimum EPC C rating on all social housing properties by 2030 - Remember these are largely councils and Housing authorities meaning that filling the homes is never an issue but meeting the Government targets is!
Understanding the various funding options available can empower stakeholders to make informed decisions that align with their goals. (Can allow Councils or housing associations to fund upgrading their properties that currently do not meet the standards outlined by the government)
Types of funding grants available for retrofit initiatives
Grants for retrofit initiatives can come from various sources:
1. Warm Homes Plan (WHP)
The Warm Homes Plan (WHP) is a UK Government initiative aimed at improving energy efficiency and reducing energy costs for households, particularly focusing on modernising heating systems and lowering carbon emissions. Key components of the plan include:
The Warm Homes Plan aims to:
- Upgrade 5 million homes over the next 5 years
- Reduce greenhouse gas emissions from buildings
- Target energy efficiency investment for those most vulnerable to cold or with low incomes
- Lift over one million households out of fuel poverty
1. Enhanced Boiler Upgrade Scheme: This program offers grants of up to £7,500 to help homeowners install energy-efficient heat pumps, reducing reliance on traditional gas boilers. The government have also relaxed the planning rules for heat pumps by removing the one-metre property boundary requirement. Making it easier for homeowners to adopt these greener technologies.
2. Warm Homes: Local Grant: A £500 million fund, launching in 2025, will support energy efficiency upgrades in homes of low-income households, aiming to lower their energy bills and reduce fuel poverty. Delivered from 2025 to 2028 by eligible local authorities. The Expression of Interest (EOI) window closed on 1st December 2024 and all eligible local authorities will be allocated funding following assessment.
3. Warm Homes: Social Housing Fund Wave 3 (WH:SHF): This component focuses on upgrading social housing to improve energy performance. Specifically, it targets upgrading social housing to achieve at least an Energy Performance Certificate (EPC) rating of Band C, improving living conditions and reducing energy consumption in the sector. Applications for Wave 3 have now closed.
Together, these initiatives aim to make homes across the UK more energy-efficient, reducing carbon footprints and easing the financial burden on households through lower energy bills.
Upgrading up to 300,000 homes and why it matters
The Warm Homes Plan is significant for several reasons, as it directly addresses both environmental and socio-economic challenges, while helping the UK meet its net-zero emissions goal by 2050.
Here’s why it matters:
- Lower Energy Bills: By upgrading homes with more energy-efficient heating systems and better installation, households will use less energy, directly leading to lower energy bills.
- Reduced Environmental Impact: Adopting low-carbon heating technologies like heat pumps will replace fossil fuel-based systems like gas boilers.
- Better Living Conditions: The plan focuses on improving the comfort and health of homes, particularly in vulnerable areas. Upgrading insulation, heating systems, and overall energy efficiency can create warmer, more comfortable homes, reducing issues such as damp, poor air quality, and high energy consumption that often led to health problems.
By targeting both the economic and environmental benefits, the Warm Homes Plan aims to provide long-term solutions for households, improve public health, and support the UK’s transition to a greener future.
2. Optimised Retrofit Programme (ORP) Wales
Optimised Retrofit (ORP) is a whole house approach to decarbonising existing homes within Wales. Offering a sophisticated, tailored, and more effective approach to improving the energy performance of existing homes, with a focus on social housing. It ensures that the retrofit process aligns with the specific needs of each property.
The Optimised Retrofit scheme is primarily available to Registered Social Landlords (RSLs) and local authorities (LAs). These groups can install a variety of decarbonisation measures within existing social housing stock, helping to reduce emissions, improve energy efficiency, and lower running costs for tenants.
Optimised Retrofit Phase 3
ORP Phase 3 is for the financial years of 2022-2025. The main theme of the programme is:
- Affordable Warmth Decarbonisation
- Understanding the best pathway to better energy efficiency for each individual home.
This encourages landlords to consider their whole stock and to produce a plan for each home undertaking retrofit. It underpins the Welsh Governments ongoing development of retrofit policy and practices across all sectors. Understanding the best value combination of fabric, space, water heating, energy, improvements for individual properties and sets out a route to net zero, within the ‘Better Homes, Better Wales, Better World’ report.
Submissions for phase 3 were back in April 2024 and funding is to be claimed by 31st March 2025.
For more details on ORP, visit gov.wales website.
3. Energy Company Obligation (ECO) - Phase 4
The Energy Company Obligation (ECO) is a government scheme in Great Britain (England, Scotland and Wales) aimed at improving energy efficiency in homes, particularly for the vulnerable and low-income households. It is designed to help reduce fuel poverty, cut carbon emissions, and lower energy costs for those who are most at risk of struggling to heat their homes efficiently.
How does it work?
The scheme involves placing a Home Heating Cost Reduction Obligation (HHCRO) on medium and large energy suppliers. Under this obligation, suppliers must promote measures that improve heating in people’s homes, such as installing or upgrading their heating systems, insulation and energy-efficient appliances. These suppliers typically pass the cost onto their customers through their energy bills.
Who is the scheme for?
ECO specifically targets vulnerable households who are more likely to experience fuel poverty. This includes:
- Low-income families
- Elderly individuals
- Those with disabilities or long-term health conditions
In addition, energy efficiency improvements are prioritized for homes that are poorly insulated or inefficient in terms of heating.
ECO4
The ECO has undergone several phases since its inception:
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ECO1 (2013-2015)
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ECO2 (2025-2017)
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ECO3 (2018-2022)
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The current phase, ECO4, began in 2022 and runs through to 2026
4. Home Upgrade Grant (HUG)
The Home Upgrade Grant is a government initiative provided to local councils, designed to help homeowners, particularly those in off-the-grid properties, make energy-efficient upgrades to their homes.
How does it work?
Local authorities are allocated a set amount of funding to provide improvements to housing in their areas. Homeowners can then apply to their local council to receive the funding to make the improvements.
These improvements include insulation, solar panels, air source heat pumps and smart heating controls.
Who can apply?
To qualify to receive funding, homes must meet a certain criterion:
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Their home must be off the gas grid
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Low-income households – gross below £31,000
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The home must have an energy Performance Certificate (EPC) between D and G
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The home must be on one of the local authority lists
How can LivGreen support you and your funding application?
Our extensive experience and leadership in funding bid support makes us the ideal partner for housing providers looking to apply for and manage these funds effectively.
Our team at LivGreen will support you every step of the way, writing it for you and with you.
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