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New Energy World
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£1.8bn energy efficiency fund to upgrade buildings across England
29/3/2023
More than 115,000 homes across England are to get upgrades to improve their energy efficiency, as the UK government announces a £1.8bn fund to upgrade social homes and public buildings.
The Social Housing Decarbonisation Fund (SHDF) and Home Upgrade Grant (HUG) are collectively worth £1.4bn and will be used to fund energy-saving measures ranging from loft insulation to new windows. An additional £1.1bn in match funding for social housing will be provided by local authorities, providers of social housing and charities to bring the total investment to £2.5bn to upgrade social and private homes in England.
The money will go towards improvements to vulnerable households and off-gas grid homes with an Energy Performance Certificate (EPC) rating of D or below and could save tenants between £220 and £400 a year on energy bills. It is thought these schemes could also support around 20,000 jobs in the construction and home retrofit sectors.
A further £409mn has also been granted through the Public Sector Decarbonisation Scheme to help public sector buildings such as schools and hospitals drive down their carbon emissions. It is hoped that upgraded heating systems, powered by cleaner, cheaper, renewable energy, will reduce the use of fossil fuels exposed to volatile global energy prices.
The funding will be rolled out from April 2023 to upgrade homes over the next two years. Energy cutting and cost saving measures provided through the schemes include exterior wall insulation, cavity wall insulation, loft insulation, new windows and doors and draft proofing measures, as well as heat pumps and solar panel installation.
The schemes form part of the government’s commitment to reduce overall UK energy demand by 15% by 2030, as well as supporting the ambition for the UK to move towards greater energy independence.
Commenting on the announcement, Energy Institute CEO Nick Wayth CEng FEI says: 'Improving the energy efficiency of our homes has taken a back seat in Whitehall for too long, but our members’ call for it to be put on an emergency footing in response to the energy crisis is finally being heard. The co-benefits are hard to deny – it cuts energy use, bills and emissions. But we’re playing catch up, and the funding and incentives need to be sustained if we’re to build the skills base needed and sustain jobs the length and breadth of the country.'
Chris Friedler, Energy Efficiency Policy Manager at the Association for Decentralised Energy (ADE) claims the new funding does not go far enough, adding: ‘We are pleased to see the government making progress on funding the energy efficiency schemes outlined in their manifesto. However, current uptake of the HUG and SHDF schemes are low and well behind target, and the focus now must be on industry engagement to reduce barriers holding back growth.’
