Îʶ¦ÓéÀÖ

The following guidance is produced to assist applicants submitting bids for funding under the Optimised Retrofit Programme (ORP). It has been developed to help inform the applicants about the type of retrofitting the programme aims to financially support.

ORP 3 is for the period of 2022-2027. The main theme of the programme is affordable warmth and decarbonisation achieved through the best path for each individual home. 

Registered Social Landlords and Local Authorities have previously received a funding award allocation from Îʶ¦ÓéÀÖto deliver phased activity of the Optimised Retrofit Programme in 2022-2023, 2023-2024 and 2024-2025.

For this year’s funding round to be considered for awarding, Optimised Retrofit Programme officials will require submission of an application (proforma) that outlines the intended costs for the year 2025-2026, also known as ORP3 Year 4 (ORP3.4). Please note that the funding allocation will continue to be generated on a formula approach of stock numbers that is based on figures sourced from the 2020 data census.

Recipient organisations will be required to complete the proforma and to conform to the outlined format of the proforma. Submitted proformas will be considered by Îʶ¦ÓéÀÖand any areas of clarification will be raised with the recipient organisation. When the Îʶ¦ÓéÀÖare content the proforma is completed and meets the requirements set out below, a grant offer letter outlining funding and grant terms and conditions will be sent to the recipient organisation.

Successful projects will be monitored and evaluated, with recipient organisations required to adopt an open book approach as a condition of accepting the funding. For example, requests for prime documents such as evidence of defrayment, updated actual to forecast models, and project outputs could be requested by Îʶ¦ÓéÀÖthroughout the length of the programme.

In 2019, The Better Homes, Better Wales, Better World report was commissioned by Îʶ¦ÓéÀÖ Ministers to examine how homes in Wales could be decarbonised. The recommendations were accepted by Ministers including a commitment to pursue a residential decarbonisation programme. 

In response to the recommendations, it was agreed that an ‘Optimised Retrofitting’ approach would be adopted here in Wales. 

From this commitment and approach the Optimised Retrofit Programme (ORP) was established in 2020. Over the past four years a range of projects across the social housing sector have been supported and £260Million of funding invested. The ORP 3 Year 4 phase of funding seeks to continue to build on this to ensure that all social landlords in Wales engage with ORP.

In taking forward the decarbonisation of existing homes, we acknowledge that retrofitting existing homes is a complex and iterative process. Homes are likely to need to go through several stages of retrofit work to reduce their carbon incrementally, embracing innovation and experimentation over time. 

It has always been our intent that ORP takes a staged approach, using the social housing sector, and investment in it, to lead and inform retrofit for other tenures of homes. ORP is intended to act as proof of concept for approaches to both fabric and technology retrofit and establish a firm evidence base on which to develop our longer term retrofit strategy. 

Our focus for ORP 3 will continue to be optimising the thermal and energy efficiency of Îʶ¦ÓéÀÖ social homes. In deploying the programme, we ask landlords to optimise insulation, maximise air tightness, and carefully consider ventilation to reduce heat loss and make homes ‘fabric ready’. We ask landlords to consider the balance the cost of making homes ‘fabric ready’ against the provision of technological measures to make homes cheaper to run and reduce carbon emission.

Key objectives of the programme are:

• Deliver the programme in ways that align the design and delivery of affordable housing with the seven goals of the .
   
• Encourage landlords to develop a strategic approach which aligns with the targets and guidance set out in Part 3 of Îʶ¦ÓéÀÖ Housing Quality Standard 2023 (pages 20 to 23 and pages 60 to 67) when considering measures to improve affordable warmth and decarbonisation of homes.
   
• Demonstrate benefits associated with new ways of retrofitting and the associated supply chain of products and services. This also includes engaging and investigating the financial and insurance services sector with a view to encouraging wider uptake.
   
• Harness opportunities to develop jobs, skills training, and develop local industry, embracing foundation economy principles and supporting wider regeneration. The programme is expected to be a source of job creation in the supply chain for retrofitting, by employing local trades and boosting the demand for these skills in local areas.
   
• Contribute to Îʶ¦ÓéÀÖpolicy objectives around reduction in waste and circular economy.
   
• To support the development of appropriate approaches to decarbonising the private rented and owner occupier sectors and disseminate key findings to maximise learning.

Additional resources

Further details regarding ORP and contextual information on wider developments can be found on the Îʶ¦ÓéÀÖwebsite or via the following links:

Îʶ¦ÓéÀÖ Housing Quality Standard 2023 | GOV.WALES

Net Zero Training

Green Personal; Learning Account Approved Course

Apprenticeships

Climate change | GOV.WALES

- the only UK Government-Endorsed Quality Scheme for work carried out in and around the home
 

- TrustMark work closely with their Scheme Providers, and their Registered Businesses (this forms part of PAS and Lodgement), to ensure that the correct processes and procedures within the TrustMark scheme have been followed.

- Note: This dashboard lists contractors working under various procurement frameworks in Wales. Please note this list does not constitute a Îʶ¦ÓéÀÖrecommendation, and users of this dashboard should conduct their own due diligence on the companies listed.

Case Studies and Media Announcements to be sent to OptimisedRetroFitProgramme@gov.wales in PDF format

The following key dates for ORP 3 Year 4 2025 to 2026 should be noted:

Landlords are required to;

1. Report to Îʶ¦ÓéÀÖ Government

(i) At end of project year report on number of premises receiving retrofit measures, type and details of intervention by updating the ‘Scheme Details and Property Details’ sheet

(ii) At end of project year report on progress via the ‘ORP 3 Year 4’ Grant Output Form

(iii) At the mid-year (end of Q2 – Sept 2025) and end-of-year (Q4 – 6th March 2026) report on progress towards Requirement 4 (below).

(iv) At completion of the project landlords are required to produce a case study for each project.

2. Undertake retrofit measures to homes using PAS 2035 (PAS 2035:2023 Specification for the energy retrofit of domestic buildings). (1)

(i) Landlords are required to lodge works on TrustMark Data Warehouse. Please note there is an ORP and landlord drop down lodgement menu on TrustMark Data Warehouse)

(ii) Landlords are required to ensure that their supply chain workforce is accredited to PAS2030 or utilise an umbrella approach for smaller sub-contractors. (2)

3. Landlords are required to install Environmental and Energy Sensors to homes to inform future retrofit programmes (such as ORP 3 Year 5) and to create pre-retrofit data to support choice of measures for homes.

(i) Landlords are required to install Environmental and Energy Monitoring Sensors compliant with, ‘Optimised Retrofit Programme 3 Monitoring Specification’ V.2.

(ii) Landlords are required to contract their chosen sensor supplier to share the data gathered with WG’s Dataset Managers, for incorporation into the ORP Dataset and Dashboards.

4. Landlords are required to align with the elements 3(a), (b), (c) and (d) as set out in Part 3 of Îʶ¦ÓéÀÖ Housing Quality Standard 2023 and guidance contained in Appendix 3.

(i) Social landlords are required to use existing asset information and focussed survey data to develop a Whole Stock Assessment for all their homes

(ii) Social landlords are required to demonstrate significant progress towards developing full TEPs for all their homes in their stock by 2027

(iii) Social landlords are required to report annually as part of the Compliance Policy (as per extract in Appendix B) set out in Chapter 5 of the WHQS 2023

5. To report information to Îʶ¦ÓéÀÖon their skills and supply chains

(i) Social landlords are required to provide details of their product and services suppliers

(ii) Social landlords are required to supply details of training and qualification of their staff and suppliers in planning and delivery of works

6. To report to Îʶ¦ÓéÀÖon additional funding streams that are applied for retrofit activities

(i) Social landlords are required to provide details of use of UK Gov sources of funding such as , Great British Insulation Scheme

(ii) Social landlords are required to provide details of use other financial services, such as leveraging assets
 

(1) (We are now in a transition period whereby the 2019 standards will be withdrawn on 30th March 2025 and replaced with the new 2023 standards. )

 (2) An umbrella approach is where accredited company A signs off the work of smaller company B 

1. Payments will be released in arrears based on activity completed as part of your programme. This will be based on a payment cycle throughout the 2025/2026 financial year, with a requirement that all works are completed no later than 31/03/2026. This includes ongoing works undertaken as part of historic iterations of the programme. Any works outstanding after this point are not eligible for grant funding.

2. Îʶ¦ÓéÀÖreserve the right to amend scheme acceptability dates and requirements. These will be discussed directly with successful scheme applicants at an appropriate time.

3. To support social landlords to fund works that are in addition to their current ‘Repair, Maintain and Improve’ (RMI) programmes, and includes not bringing forward from RMI, future years to use with the ORP grant. Typically, these programmes are currently aligned around existing Îʶ¦ÓéÀÖ Housing Quality Standard (WHQS) 2023 standard.

4. Eligible capital costs are costs that can be directly linked to the programme such as insulation, heat pumps and other interventions. Eligible revenue costs are costs that can also be directly linked to the programme such as direct labour cost.

5. Up to 10% of the total grant allocated funding threshold can be used for the following non-direct activities:

• innovation and research linked to the decarbonisation of your housing stock.
• In house programme management fees
• Third party management fees (considered on a case-by-case basis)
• Procurement of in-house asset management and stock modelling software.

6. Please note that there is a requirement to split your own contribution by category on the eligible cost sheet.

7. Environmental & Energy monitoring systems and survey fees are eligible costs.

8. VAT (Value Added Tax) applied on expenditure incurred will only be considered as eligible expenditure if you are unable to recover the VAT within your own taxation rules.

Îʶ¦ÓéÀÖintends to build an evidence base of what works and what doesn’t, to inform future policy and investment decisions.

Evaluation requirements will be confirmed in the Grant Offer Letter awarded for successful projects.

All successful projects will be required to participate in evaluation exercises as a condition of grant. Specific additional evaluation may be commissioned to investigate an individual scheme’s innovation focus, and the nature of this evaluation will be discussed and agreed on a scheme specific basis. Timely provision of data is also a condition of the funding.

After initial analysis the data will be collected and published 
 

7.1 Submitting applications

All correspondence and your completed application submission should be sent electronically to: OptimisedRetroFitProgramme@gov.wales. The relevant Îʶ¦ÓéÀÖORP lead may also be cc’d within your communication:

• Daniel Dunning (daniel.dunning@gov.wales) – Overall lead and for financial matters
• Bethan King (bethan.king@gov.wales) – for monitoring, KPIs & progress reporting matters
• Malcolm Davies (malcolm.davies2@gov.wales) – for Supply Chain & Skills and Utilities & Accreditation Organisations.
• Patrick Myall (patrick.myall001@gov.wales) – for monitoring & technical specification matters

7.2 Compliance assessment 

Applicants should note the following:

• A fully completed application form, eligible costs and scheme details sheet, and any necessary attachments must be submitted.
• Applicants have committed to meet all criteria set out on the application form.
• Applicants have committed to participate in the monitoring and evaluation of funded projects.
• Applications must have regard for UK Subsidy Control Statutory Guidance. This will be verified by Îʶ¦ÓéÀÖ Government.
• Îʶ¦ÓéÀÖwill request further details, additional information or/and clarification questions as necessary to assess and approve the ORP application forms and applicants are expected to respond to these requests in a prompt fashion.

The proposals will be assessed against how they align with the general aims and objectives of the optimised retrofit approach and the requirements set out above.

Applicants may be asked to provide additional information or/and clarify submissions as outlined above. Applicants will be notified by Îʶ¦ÓéÀÖofficials of successful proposals and/or caveated proposals prior to grant offer and award.

8.1 ORP grant offer

A grant letter will be made following the successful completion of all the checks and processes referred to above. A proposed payment profile must be submitted with the submission.
 

Acknowledgement of Îʶ¦ÓéÀÖsupport should be displayed on all publicity, press releases and marketing material produced in relation to the project, as well as on site during development.

Such acknowledgement must be in a format approved by Îʶ¦ÓéÀÖand must comply with the Îʶ¦ÓéÀÖ Government’s branding guidelines.

Case studies and media announcements to be sent to;

optimisedretrofitprogramme@gov.wales in pdf format

If you would like further advice or information about the ORP, please email: OptimisedRetroFitProgramme@gov.wales