Government Announce Wave 2.2 of Social Housing Decarbonisation Fund.

Original Article
October 24th, 2023


Earlier this month, the Department for Energy Security and Net Zero (DESNZ) announced that SHDF Wave 2.2 will open for applications the week commencing 20th November. In this latest round of funding, up to £80 million will be allocated to successful bids, helping social housing landlords to improve the energy efficiency of their stock.

Applications must be submitted by the week commencing 15th January next year and successful projects will be notified by late February to early March. The delivery window is two years, until March 2026, with projects required to spend all their grant funding within the first year.

SHDF funding is available for local authorities, combined authorities, registered charities that own social housing and registered providers of social housing. Eligible organisations can apply directly for funding as a single bidder or as a consortium bid leader, while non-registered providers can apply as part of a consortium.

Application requirements include:

  • A minimum of 90% of social homes across the overall application must be below EPC Band C. A small number of homes not meeting this definition may be funded on an infill basis.
  • All Wave 2.2 proposals must include a minimum of 100 eligible properties at EPC band D-G. Any fewer and a bid must be submit as part of a consortium and provide strong justification as to why the application could not include 100 in-scope homes. In such cases, bids should be as close to 100 homes as is possible.
  • Landlords who have been successful in receiving funding through SHDF Wave 2.1 and have signed a Grant Funding Agreement with DESNZ, either directly or as part of a consortium, will not be eligible to apply for Wave 2.2.
  • All projects must be compliant with the updated PAS 2035:2023.
  • DESNZ will require at least 50% of total eligible costs to be provided by the applicant.
  • DESNZ will assess the measures to be installed alongside a detailed cost breakdown. Proposed measures in alignment with the Wave 2.2 objectives will score higher than those which do not align with the objectives.

Full SHDF Wave 2.2 draft guidance can be found here with final clarification to come when the competition is launched.

The availability of further financial aid for social housing landlords is welcome and will see improvements made to the least efficient homes in the sector.

After successfully assisting nine customers with their Wave 2.1 bids, resulting in a total of £74 million of funding, Sava would like to extend support to any organisations applying to Wave 2.2. Our analytics team can help by developing coherent improvement plans that will reach EPC Band C and getting your data bid ready.

If you would like to hear more about how we can help, please do not hesitate to contact us at