Funding Opportunities
Updated 30 July 2010
Read more about the environment-related funding opportunities available to housing associations including grants from Europe
Current and forthcoming funding opportunities
Closed funding opportunities
There are also European funding opportunities available.
If you are aware of other funding opportunities aimed at helping housing associations achieve higher environmental standards, please contact us so we can let our members know.
Federation funds retrofitting project
One of the Federation's 6 core projects this year looks at finding a sustainable way of funding energy efficiency refurbishment.
- Find out more about the project, our actions so far and how to contribute (PDF, opens new window).
Fits and 'rent a roof' companies
The Federation, and many of our members have been approached by companies or intermediaries offering to rent roof space (assets) from housing associations in exchange for free or discounted energy (via installation of photo-voltaics).
There are a number of risks and long-term benefits to associations investing in FiTs themselves or via a third party and the Federation would advise members to carefully evaluate any proposals such as 'renting roof space and free installation of PV' before signing up to any long-term agreements. These include:
1. The potential long-term investment that could be made if associations were to invest in renewables via FiTs themselves (subject to availability of capital - see Federation project below for more information)
2. FiTs pay back over a period of 20-25 years, providing a long-term revenue stream to the owner of the renewable for this time period. This revenue stream will initially pay back the capital cost of the equipment, however in the long-run it may provide an additional income stream (depending on borrowing costs etc) which could be invested in other parts of the business (such as other retrofit measures, which would enable a whole-house approach).
3. Any company who 'rents a roof' should then be liable for maintenance to the equipment. This must be taken into consideration for the housing association in undertaking their own maintenance.
4. Any renewable installed will provide some degree of free electricity for the tenant, if this is offered at a 'discount' the intermediary will be taking some of this as profit for themselves.
For more information please contact Olivia Powis 020 7067 1083 or read the Trowers & Hamlins document "Green" retrofit – something for (almost) nothing?
FITs and Tax
The Federation has sought tax advice on the treatment of tax in regard to feed-in tariffs. We are still awaiting clarification on this issue, but guidance from Treasury states that:
1. Income Tax
"The tax treatment of tariffs received will be in accordance with normal tax rules. However, additionally, section 782A of the Income Tax (Trading and Other Income) Act 2005 provides an exemption from income tax for an individual's income from the sale of electricity generated by a microgeneration system where:
(a) the system is installed at or near premises occupied by the individual, wholly or mainly, as a separate private dwelling, and
(b) the individual intends that the amount of electricity generated by the micro-generation system will not significantly exceed the amount of electricity consumed in those premises.
As a housing association is not an individual the exemption will not apply and the feed in tariffs will be taxable under normal rules.
2. Corporation Tax
If FiT income is liable for corporation tax, housing associations should evaluate the most appropriate part of their business (charitable/non-charitable) and use a non-charitable SPV for FiT installations. The Federation is awaiting further guidance on this issue.
3. VAT
(i) If the HA charges the tenant for the electricity generated, VAT would be charged at a reduced rate.
(ii) If the HA is selling back to the grid VAT would be charged at a standard rate
(iii) If the HA uses the electricity for their own purposes (e.g. in a communal area in a block of flats) there would be no supply and no VAT payable.
(iv) if the HA 'gifts' the electricity to tenants, ie (makes no charge), this would be non-business use of the electricity. This might implications on the extent to which the HA was able to recover VAT on related expenditure.
We are following up on this. For more information, please contact Olivia Powis on 020 7067 1083
FITs and State aid: DECC says grants are not compatible
DECC notified the Feed In Tariffs scheme to the European Commission who ruled that it was state aid and that 'investment aid' in conjunction with the scheme would therefore not be compatible.
DECC are still to publish their guidance on FITs following the Commission ruling but conversations suggest that their view is that grants and FITs are not compatible.
We are following up on this. For more information, please contact Corine Meier on 020 7067 1034
Free seminars: help to go 'green' with extended grant funding
DECC and BRE are holding a series of free half-day seminars throughout the UK to help you go 'green' through the extended grant funding now available under Phase 2E of the Low Carbon Building Programme.
The funding can be used for the supply and installation of any combination of the following microgeneration technologies:
- Solar thermal hot water
- Heat pumps
- Automated wood pellet stoves
- Wood fuelled boiler systems
- Micro hydro turbines
- Solar photovaltaics
- Wind turbines
Places are available at seminars in the following locations:
Watford - 10 November 2009
Newcastle - 25 November 2009
Bristol - 2 December 2009
Cambridge - 19 January 2010
London - 21 January 2010
For more information or to book a place on the seminars, visit the Low Carbon Buildings Programme website.
Technology Strategy Board: User centered design for energy efficiency in buildings
The Technology Strategy Board (TSB) is calling for participants for a five-day 'sandpit' to explore the challenge of reducing the demand for energy in non-domestic buildings. The TSB have allocated £2m to fund projects that arise from the sandpit.
Potential applicants need to register and sign into the TSB website to download the application form and guidance documents. The deadline for applications is noon on 17 December 2009. If you have any queries, contact the TSB competition helpline on 01355 272155.
Energy-efficient Buildings: new European funding for retrofitting
The European Commission, together with E2B Associations (an international non-for-profit industrial association) has launched a new Public-Private Partnership, Energy-efficient Buildings, for the construction sector to contribute towards a more green and sustainable economy.
The first research projects are expected to start in the spring of 2010. The deadline for submitting projects is 3 November 2009.
In order to secure the liaison between E2BA and Member States, seven National Liaison Points (NLPs) have been established. If you wish to submit a project or know more about the E2B initiative, we recommend you contact Ms Marta Fernandez (ARUP) who is the UK contact.
Further information
- E2B Association (external website)
- Visit the CORDIS website to download the work prgramme, the call for proposals and other relevant documents needed for the preparation of projects proposals (external website)
- Some project ideas have been presented in order to facilitate the partner search - download a presentation (PDF, opens new window) and Project Fiches (PDF, opens new window)
CERT Funding
What is CERT?
What measures can CERT fund?
Who can CERT funding help?
Innovative projects
How can housing associations access CERT funds?
What is CERT?
The Carbon Emissions Reduction Target (CERT) - came into force on the 1 April 2008 and will run until 2011. The programme sets an obligation on energy suppliers, with 50,000 or more domestic customers to reduce carbon dioxide emissions, by promoting energy efficiency and micro renewables to domestic energy users.
The Government has set a CERT target of 154 million tonnes (lifetime) of CO2 – this target is divided between the obligated suppliers according to the number of domestic customers they supply electricity and gas to. The Government estimates the new obligation will stimulate around £2.8 billion investment by energy suppliers in carbon reduction measures.
In September 2008 the Government announced plans to legislate to require energy companies and generators to provide an additional £910 million towards the National Home Energy Saving Programme – it is expected that £560 million of this additional funding will be added to the existing CERT scheme – this equates to a 20% increase in the CERT target placed on obligated suppliers.
CERT replaces the old Energy Efficiency Commitment 2005-2008 (EEC2) programme which ended 31 March 2008 – The CERT target is equivalent to double the old EEC2 target.
CERT is a carbon dioxide target rather than an energy target – this allows for suppliers to promote a wider range of initiatives.
What Measures Can CERT Fund?
Under CERT, measures can be provided to any domestic household in Great Britain that is heated by gas, electricity, coal, oil or LPG. Eligible measures include:
- Wall cavity and loft insulation
- Lighting
- Heating (excluding standard boiler replacements)
- Appliances
- Innovative measures including micro-generation, biomass community heating etc
Ofgem have found that the majority of cardon reduction savings under the CERT scheme, since it began in April, have come from insulation and lighting measures. Heating schemes account for a very small proportion of the savings achieved so far.
Who can CERT funding help?
Energy suppliers have a Priority Group obligation to meet under CERT – this equates to 40% of the individual suppliers overall contribution. The Priority Group includes those aged 70 and over and low income households (those in receipt of relevant benefits / tax credits)
Suppliers have some flexibility on how they reach their 40% Priority Group obligation and overall target. For example, they can direct activity at those in the priority group most likely to be in hard to treat homes – by promoting ground source heat pumps and solid wall insultation they can achieve up to 5% of their overall CERT obligation via this route and receive an uplift on the savings made.
Innovative Projects
Under CERT innovative actions can count towards 6% of the suppliers obligation or 8% were at least 2% micro-generation is delivered. Innovative actions include:
Those which aim to transform the market: those items not already covered by the programme with an aim of getting these approaches mainstreatmed - an uplift of 50 per cent additional energy savings is available to obligated suppliers on market transformation actions which include micro-generation
Demonstration projects: a proportion of suppliers obligation can be met through carrying out demonstration projects, to trial new types of measures or to assess customer reactions to information or measures
How can housing associations access CERT funds?
CERT obligated suppliers can work with Social Housing Providers to deliver energy efficiency measures to households within the social housing sector. For the purpose of CERT the term “social housing providers (SHP)” refers to borough councils, city councils, housing associations and registered social landlords.
- Read the National Housing Federation's Get Grant Funding leaflet about CERT funding for housing associations (PDF document, 578KB, opens in new window)
The obligated suppliers provide the funding for the installation or distribution of measures. Obligated suppliers are not limited to offering measures to their own consumers - they can partner with other organisations for the distribution of measures or to encourage the uptake of measures. Ofgem must approve schemes where a CERT obligated supplier partners with a SHP.
To obtain funds under CERT housing providers should contact an obligated supplier. At present these are:
- British Gas
- EDF Energy
- Npower
- Powergen
- Scottish and Southern Energy
- Scottish Power
More information about CERT
CERT contact details for the above energy suppliers (Ofgem website, external link)
Information for housing providers involved in CERT projects (Ofgem website, external link)
Ofgem CERT Update August 2008 (Ofgem website, external link)
BRE Funding
BRE, as a partner of the Big Lottery Fund, is running the Community Sustainable Energy Programme (CSEP).
This is an open grants programme that will provide £8 million to community-based organisations for the installation of micro-generation technologies, such as solar panels or wind turbines and energy efficiency measures including loft and cavity wall insulation.
It will also provide £1 million for project development grants that will help community organisations establish if a micro-generation and energy efficiency installation will work for them.
It aims to achieve the following outcomes:
- Reduction in CO2 emissions
- Increased community awareness of climate change and how changes to our behaviour can reduce it
- Increased skills base of local trades (for example, local builders and building-service subcontractors working on renewable energy projects for the first time)
- Reduction in energy bills
- Reduction in reliance on imported energy and increased independence from commercial energy suppliers
- Stronger partnerships within local communities with lasting social benefits
- Growth of local enterprise in new technologies
Not-for-profit housing associations are encouraged to apply. Capital grants will be awarded on a competitive basis at quarterly Selection Panel meetings. Project Development grants will be awarded on a first-come first-served basis until all funds are spent.
This programme has a rolling programme of funding rounds, with each round lasting approximately three months. The deadlines for each funding round are as follows:
Funding round Application deadline Selection panel meeting
5 Friday 1 May 2009 10 June 2009
6 Friday 7 August 2009 16 September 2009
7 Friday 30 October 2009 9 December 2009
8 Friday 29 January 2010 w/c 1 March 2010
9 Friday 7 May 2010 w/c 7 June 2010
10 Friday 30 July 2010 w/c 6 September 2010
11 Friday 29 October 2010 w/c 29 November 2010
More information is available at the Community Sustainable Energy Programme website (external link).
Defra Greener Living Fund
Defra has launched a new £6m fund to promote 'greener living'.
The fund is available to support projects influencing 'pro-environmental behaviours in the wider population', with the main delivery phase running between April 2009 to March 2011.
We have been advised that housing associations (or groups) operating nationally may be eligible to apply for funding, however only a 'small number' of national delivery partners will be selected. Successful applicants will need to demonstrate that they have the ability and reach to influence behavioural change at a grass roots level.
More information about the fund and how to apply is available on the Greener Living Fund section of the Defra website (external link).
***UPDATE*** 23 Feb 2009
The National Energy Foundation are looking for housing associations interested in taking part in their Old Home Superhome project, which aims to open up at least 20 eco-renovated homes for public viewing.
These open houses will be used to educate, inspire and call to action members of the public and other interested parties to replicate the methods undertaken. Only renovations that have achieved a minimum 60 percent energy reduction will be used.
Any housing associations interested in this project should contact Gabby Mallett, Head of Communities at the National Energy Foundation for more information.
Technology Strategy Board
The government funded Technology Strategy Board (TSB) has released details of two forthcoming competitions for funding.
Design for Future Climate
This competition is planned to design buildings for comfort, quality of life and low environmental impact, meeting current targets and also addressing the UK Climate Impacts Programme best predictions of climate in 2050.
The Technology Strategy Board is set to invest £5 million in the competition, and they will be holding a workshop on 13 October 2009 at their Innovate09 event. Further information is available on the Technology Strategy Board website (external link).
Demonstrator Monitoring
This competition will enable companies constructing 'demonstrator' buildings, both domestic and non domestic, to apply for funding to monitor building performance, enabling comparison with predicted performance. The Technology Strategy Board is set to invest £10 million in the competition, and are working with the zero cardon hub to develop a standard evaluation protocol to provide key performance information. Developers will receive grant funding in exchange for agreeing to monitor against the protocol and to share anonymised data.
Further information is available on the Technology Strategy Board website (external link).
European funding opportunities
Temporary moratorium on ERDF spend post 2011 called by Treasury
Treasury have given notice to regional development agencies (RDAs) of a temporary moratorium on ERDF spend post March 2011. This will affect projects being developed and still awaiting final sign off under the 4% legislation amendment (retrofitting of existing stock). We are in touch with CLG and RDAs to understand the thinking behind the moratorium and to lobby for a lift. For more information please contact Corine Meier on 020 7067 1034.
Past funding opportunities
The following competitions are now closed to new entrants
Low Carbon Buildings Programme - programme now closed
The Government funded Low Carbon Buildings Programme Phase 2 (LCBP2) provided grants of up to 50% for microgeneration technologies to public sector and non-profit sector organisations, including housing associations.
The programme was closed to new applicants on 24 May 2010. For further information on the closure of the scheme, including whether your application is affected, visit the low carbon building phase 2 website (external link).
Bio-energy Capital Grants Scheme - now closed
Round 5 of the Bio-energy Capital Grants Scheme, funded by the Department of Energy and Climate Change (DECC), is now open for applications until at least 30 April 2009.
The scheme provides capital grants to support the installation of biomass-fuelled heat and combined heat and power projects, including anaerobic digesters, in England. The scheme is open to the industrial, commercial and community sectors, including housing associations.
There is a variable grant rate of up to 40% of the difference in cost of installing the biomass boiler or CHP plant compared to installing the fossil fuel alternative. The maximum single award is £500,000 per installation and there is no minimum award threshold.
Technology Strategy Board 'Retrofit for the Future' competition - now closed
The government funded Technology Strategy Board has launched a £10m competition to find "at least 50" retrofitting and refurbishment prototypes demonstrating innovative whole dwelling energy saving solutions.
The competition, which is officially launched in March 2009, is aimed at building and renovation companies and will be managed by the Technology Strategy Board in collaboration with social landlord partners. Successful companies will be offered 100 percent funding for their projects and will be "well placed to bid for future refurbishment projects". Winning entries will be representative of a broad range of housing types.
For more information and to download a leaflet please visit the Technology Strategy Board website (external link).
***UPDATE*** 20 April 2009
The Technology Strategy Board is running a series of retrofitting workshops around the country throughout May.
Community Energy Saving Programme (CESP) [consultation] - now closed
As part of the £1bn energy efficiency package announced by the Prime Minister in September 2008, £350m was earmarked for the Community Energy Saving Programme (CESP), which is being launched to provide a whole-house energy efficiency approach to households throughout Britain, concentrated on those living in areas of high deprivation.
CESP will be administered by Ofgem and delivered through the development of community-based partnerships (involving local authorities) along with suppliers and generators. The government departments responsible for the initiative, CLG and DECC, have said they are particularly keen to see housing associations apply for funding.
The CESP will be open for bids later in 2009, after a consultation on the exact design and operation of the programme which was launched on 12 February 2009. ***Consultation closed on 14 April 2009***
More information about CESP and the funding streams available to housing associations will be added here when it become available.
HCA Additional Funding for Cavity Wall Insulation - now closed
HCA has announced a further £83.8m (£54.5m for 2009/10 and £29.3m for 2010/11 - one bid round only) of additional funding to help social landlords insulate hard to treat cavity walls that would not otherwise be filled under the Decent Homes programme by April 2011.
This programme is to fund works that are additional to current plans under Decent Homes or the Carbon Emissions Reduction Target (CERT). The programme aims to tackle 130,000 homes, enable 2,500 jobs to be supported or created, and £120 per year to be saved on bills for each house. In addition there will be up to 800kg CO2 per household saving each year. Whilst the average cost/unit is around £650 the HCA expect landlords to seek the best possible deal from providers.
The funding is available to all social housing providers in England: Registered Social Landlords; Arms Length Management Organisations; and local authorities who have retained their social housing stock. The minimum size of a bid is 1,000 properties. For housing providers where stock does not meet this minimum requirement the Homes and Communities Agency (HCA) will accept bids from a consortia of social housing providers.
Eligibility: Bidders must meet all four of the following criteria
- Must be Category 3 Cavity Wall insulation, or more than 80% Category 3
- Must be additional to works already planned
- Must be planned and delivered within agreed timeframe, and before end of 2010/11
- Minimum bids considered - 1,000 properties. HCA will consider bids from consortia.
Funding will not be made available for the retrofitting of external insulation rendering or cladding purposes. Funding is strictly limited to the cavity filling of walls.
Deadlines for bids: 12 June. Successful bidders will be announced in July.
Further information is available on the HCA website (external site).
The Federation will be meeting with the HCA to discuss further details on the programme and possibilities of match-funding. Please feed any comments to Olivia Powis at Oliviap@housing.org.uk by the 20 May 2009.
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