The government’s recently published draft guidance for Wave 3 of the Social Housing Decarbonisation Fund (SHDF) introduces significant changes aimed at simplifying the process of implementing energy efficiency improvements. Released by the Department for Energy Security and Net Zero (DESNZ), the guidance includes several key adjustments. Notably, it introduces incentives for low-carbon heating in homes connected to the gas grid and strategic partnership pathways for large-scale retrofitting organisations. The delivery period for Wave 3 extends until September 30, 2028, with an allocation of £1.25bn. There are also changes in grant funding for homes connected to the gas grid, offering a £20,000 grant per home for installing low carbon heating measures. This incentive, available for up to 10% of homes in an application, exceeds the standard £7,500 cost cap for off-grid homes. Moreover, the guidelines expand eligibility criteria, allowing inclusion of homes at or above EPC band C in applications, and providing flexibility for small registered providers to apply for funding for fewer than 100 homes.

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