Warm Homes: Frequently asked questions - Webinar briefings WHSHF
Introduction
The below provides a summary of eligible questions which were asked by potential applicants during Warm Homes webinar briefings carried out in October 2024. Answers have been provided by the Department for Energy Security and Net Zero (DESNZ) where they were not already addressed in the available guidance material.
As we continue to process questions from potential applicants, throughout the Warm Homes funding windows, this page will be updated regularly with new responses as and when relevant.
The last update was on November 8th 2024.
Contents
Guidance questions
How can the £20k on-gas grid grant be utilised, specifically regarding funding for air source heat pumps (ASHP) and solar photovoltaic (PV) systems to ensure affordability, the per-property versus per-bid allocation, eligibility for installing low carbon heating and PV on EPC C+ homes, and the applicability to gas-fired district heat networks?
As laid out in Section 2.9.1 of the scheme guidance, the £20,000 on-gas grid grant offer is to be used for the installation of air source heat pumps, ground source heat pumps, shared ground loops, and connections to low carbon heat networks. Solar PV is not classed as a low-carbon heating (LCH) measure for the purposes of the cost caps, however applicants are able to install this alongside a LCH measure if possible within the £20k grant offer. If this is not possible within the cost-cap, applicants are welcome to use co-funding to install the additional measure.
The offer can be used on EPC C+ homes (limited to 10% of homes in a bid). The offer is not available for connection to existing gas-powered heat networks.
Can you clarify the eligibility of batteries for grant funding and SAP scoring, and whether solar PV & battery storage can be installed instead of fabric-first measures, particularly for properties aiming to improve their EPC ratings?
As laid out in Section 2.9 of the scheme guidance, eligible measures are any energy efficiency and heating measures compatible with the latest version of the Standard Assessment Procedure (SAP) that will help improve the energy performance of homes, excluding heating systems which are solely fuelled by fossil fuels. Solar PV is a SAP eligible measure, however batteries are not. The full list of eligible measures can be found in the RdSAP 2012 specification. Wave 3 has not included the fabric first requirement to allow applicants to take their own approach to retrofitting homes.
Why isn't fabric first mentioned in the Wave 3 guidance?
The fabric first requirement has been removed to allow housing providers to take their own approach to retrofitting properties. Fabric measures remain eligible in Wave 3.
Regarding the grant and co-funding spend rules, can you clarify the flexibility in the annual spend profile, including the possibility of negotiating the 33%-33%-33% distribution, accommodating different spend profiles across the three years, and the potential for moving funding between fiscal years?
The Department encourages applicants to align to the spend profile as much as possible. Some limited flexibility on the profile can be allowed, and this will be considered on a case-by-case basis. The application form has allowed for this possibility as there is the option to set out the justification for not fully aligning with the spend profile.
On moving funding between fiscal years – this will not be possible. This is the case for the previous Wave 2 and remains for Wave 3: funding must be spent within the financial year it was allocated. Applicants will be required at application stage to set out their grant funding for each financial year.
For further information on grant funding, please see Section 2.12.1 of the scheme guidance.
Are applicants limited to improving to EPC C can they go beyond that if within the cost cap?
While WHSF funding may only be used on measures that will uplift a home to EPC band C, and not beyond, applicants are able to go beyond this level in their projects. Funding for these extra measures that take a home from EPC C to or beyond EPC band B must be entirely funded by the grant recipient and should not be included in applications or projects.
See the guidance page 34, going beyond WHSF performance outcomes.
Technical questions
How will the RdSAP 2012 and RdSAP 10 transition period impact grant recipients?
Will EPC accreditation companies allow post-retrofit assessments to continue using RdSAP 2012 for projects where pre-retrofit assessments took place before the RdSAP10 “go-live” date and works commenced by March 2025? Or will projects without commenced works by March 2025 require a new pre-retrofit assessment in RdSAP10 to remain TrustMark compliant?
A potential applicant has previously done a lot of surveys in RdSAP 2012 and would like to include these properties in their WHSF bid. They want to know if they will need to re-do these surveys in RdSAP10 in order to maintain eligibility, or if they can continue without repeating surveys?
As stated in the guidance, a new version of RdSAP (RdSAP 10) is expected to go live in the coming months. The EPC accreditation companies have indicated that new pre-retrofit assessments will not be permitted to take place in RdSAP 2012 after RdSAP 10 is in place. EPC accreditation companies have instead indicated that they will continue allowing the generation of RdSAP 2012 post-retrofit assessments to enable retrofits that started in RdSAP 2012 to be completed in RdSAP2012, where the pre-retrofit assessment took place before the “go-live” date of RdSAP10 and works have commenced by March 2025.
The Department has received feedback from stakeholders that this March 2025 requirement will be difficult to achieve in practice, and is looking into potential changes. A position on there issues will be confirmed as soon as possible.
What measures are actually eligible? It is established that there is low carbon heating i.e., heat pumps and energy efficiency measures such as solar PV but is there a full list available? I.e., are new electric storage heaters accepted due to not using fossil fuels?
Eligible measures under WHSF Wave 3 include a range of energy efficiency, ventilation and low-carbon heating options. While there isn’t a single exhaustive list, eligible technologies broadly include:
- Low-Carbon Heating: Systems like heat pumps, ground source heat loops, and heat networks are eligible. Fossil fuel-based systems are not permitted
- Energy Efficiency: Measures such as solar PV, insulation, and efficient ventilation are included
- Electric Storage Heaters: High-retention electric storage heaters are eligible, especially in flats or small homes where heat pumps may not be suitable, as long as they don’t use fossil fuels
- The products characteristics database known as the PCBD lists all of the SAP/RdSAP eligible products
Delivery questions
It could be anticipated that most applicants will be entering long term contracts for delivering the totality of their Wave 3 project. How will this work if applicants have uncertainty over whether their phase requests will be approved?
At the phase request stage, grant recipients must provide a detailed cost breakdown based on thorough supplier engagement or signed contracts. DESNZ will conduct cost benchmarking by comparing these costs against previous Waves and other Wave 3 phase requests to ensure value for money. If costs appear disproportionately high or fail to represent value, DESNZ may request further explanation or suggest adjustments to lower costs. In cases where costs remain unadjusted, such phases may be rejected and require resubmission with more cost-effective measures.
Additionally, up to 20% of grant funding is available upfront to cover preparatory expenses, enabling initial work to begin while approvals for later phases are still in progress.
Phases should also be strategically grouped, ideally by location or housing type, to ensure that each stage is independently viable. This approach ensures that completed work remains beneficial even if there are delays in subsequent phase approvals.