6. The financial framework: underpinning the market
Demonstrate the plan is commercially viable
ALPHA
Important note on funding: The funding opportunities and available grants outlined in this section serve as an indication of the potential financial landscape, highlighting the types of schemes and organisations that could be leveraged. However, it is crucial to note that the actual amounts available are subject to constant change. As money is continuously allocated and spent by granting bodies, and as funding schemes are regularly updated or modified, the precise financial figures and eligibility criteria may shift. Therefore, all figures presented should be viewed as illustrative of what currently exists and must be verified against the latest information at the time of application.
Section objective
This is where you demonstrate that the plan is commercially viable. Your goal is to map the 'capital stack', showing how a mix of government grants, private finance, and institutional budgets (like social housing funds) combine to create a stable, multi-year revenue stream for contractors.
The value to stakeholders
Revenue visibility: by listing specific grant allocations (eg, the £3 million Warm Homes local grant), you tell the supply chain exactly how much 'secured' money is currently on the table.
New market models: Highlighting 'investor-funded' or 'community energy' models signals that the council is open to innovative delivery where contractors don't have to wait for individual resident payments.
What to include in this section
Grant inventory: list all active funds (WH:LG, BUS, WH:SHF) and specify the current 'pot' size and property targets.
Private & alternative finance: signpost modern lending vehicles, such as the National Wealth Fund or sustainability-linked loans, that residents or businesses can use to top up grant funding.
Anchor partner budgets: detail the specific decarbonisation spend from local Housing Associations. This is crucial for showing 'guaranteed' work volume.
Model innovation: examples of standing-charge models or 'utility-style' delivery that remove upfront costs for the end-user.
Example text
This box below includes a pre-written section that can be filled in with information relevant to your chosen area.
6. The financial framework: Underpinning the market
We understand that commercial viability is paramount. This plan is underpinned by a strategy to leverage existing funding and develop new commercial models to ensure projects are financially sound. Funding streams and grants are subject to changes and will therefore be kept under review.
6.1. Available funding streams
LIST ALL POTENTIAL FUNDING THAT COULD BE USE TO SUPPORT DELIVERY.
6.2. Finance and lending vehicles
Beyond grants, opportunities to finance clean heat projects are available through:
National Wealth Fund which provides financial guarantees to unlock private capital for retrofitting social housing.
Green Retrofit Loans offered by private lenders and mortgage providers, where rates are tied to sustainability outcomes such as improved EPC ratings.
Other opportunities for alternative financing models include:
Investor funded clean heat neighbourhoods. The first example of a ground source heat pump network was announced between Kensa and Octopus Energy generation for over 100 homes in South Wales. This pension backed network model mirrors how existing utilities such as water, gas and broadband are delivered where the customer doesn’t have to pay the upfront installation cost.
Community energy models such as Rossendale Valley Energy’s Net Zero Terraced Streets. With initial funding provided via the UK Community Renewal Fund, this scheme aims to test the concept of a Net Zero terraced street through a community heat service delivered through clusters of shared bore holes and ambient heat loops. With no upfront cost to the homeowner, landlord or tenant, the initial investment in infrastructure and retrofit will be paid back via a standing charge by householders. A community energy club will bring householders together to access cheaper, community owned energy. This is part of a wider net zero community vision.
6.3. Social housing funding plans
The main social homes providers in AREA are LIST OF SOCIAL HOUSING PROVIDERS.
Briefly outline each social housing providers (e.g., size of housing stock)
Outlines each provider’s ongoing and previous commitments.
The example from Plymouth
Sign up to hear more
We are a building a network of areas, suppliers and community groups interested and working across low-carbon heat.
Sign up here if you would like to be notified about updates and opportunities to collaborate.
