Retrofit in line with regulation changes, grants and schemes

Contents

1. When it makes sense to do a retrofit
2. Consult building occupants on timing
3. Meet rising standards for EPCs
4. Meet rising Building Regulations
5. Comply with fossil fuel heating phase out
6. Apply to the Boiler Upgrade Scheme before 2025
7. Get funds for industrial-scale retrofits
8. Get finance and support

When it makes sense to do a retrofit

As a major source of carbon emissions, buildings legally must meet higher energy standards as the UK moves toward its net zero goals.

SMEs that own or manage older non-domestic buildings need to make a retrofit plan, allowing for:

• tenants are changing over
• building systems or materials that need replacing
• standards are increasing
• funding is available

Retrofits are often combined with other building changes such as:

• repairs and maintenance
• improvements and alterations
• extensions and changes of use

Consult building occupants on timing

You have the most control over when to do a retrofit if your building is solely owner-occupied.

A ‘deep’ retrofit that changes building fabric and services may still cause significant disruption to finances and business activities. Staff should be consulted on timing to ensure buy in.

You can do a retrofit in any of the following ways if you have tenants:

• between tenancies when the building is unoccupied
• during tenancy, but only to owner-controlled parts of the building
• during tenancy, including parts of the building the tenant controls

Usually, the owner controls the ‘core and shell’. The core shell is:

• the outer building envelope and basic interior parts
• major services such as heating supply

Tenants may have varying degrees of control over interior finishes, lighting and how equipment operates.

Establishing ‘boundaries of control’ and when they can be retrofitted to meet performance standards is important to making a successful retrofit plan.

Meet rising standards for EPCs

In England and Wales, your building may require an Energy Performance Certificate (EPC) rating that meets minimum standards.

The rating depends on factors such as the:

• type of building
• heating system
• energy source

Find out more about EPC ratings across the UK.

Meet rising Building Regulations

As of June 2022, in England you must meet new Building Regulations for retrofits that qualify as ‘building work’.

These regulations are expected to increase substantially again in 2025.

Find out more about renovations.

Comply with fossil fuel heating phase out

The government’s Heat and Buildings Strategy aims to phase out the installation of building heat and hot water systems that use fossil fuels.

Under revised plans, the ban on installing oil and LPG boilers, and new coal heating, for off-gas-grid homes will come into force in 2035, instead of phasing them out from 2026.

An exemption to the phase out of fossil fuel boilers, including gas, in 2035, has been made for households who will most struggle to make the switch to heat pumps or other low-carbon alternatives.

Proposed changes would not apply to industrial processes that require heat.

Find out more about heating systems.

Apply to the Boiler Upgrade Scheme

You might be eligible for a grant to upgrade your boiler if you own a smaller non-domestic property in England or Wales.

The Boiler Upgrade Scheme gives £7,500 grants towards the cost of an air source heat pump or a ground source heat pump (including water source heat pumps and those on shared ground loops), and £5,000 towards a biomass boiler.

Your building must also have enough insulation to be eligible.

Find out more about retrofit funding.

Get funds for industrial-scale retrofits until 2028

For larger sites with high energy use, the Industrial Energy Transformation Fund (IETF) provides up to £30M in matching funding per business for a variety of efficiency measures.

The scheme is designed to run until 2028 and is available across the UK.

Phase 3 of the IETF is open for new applications, supporting industry to cut their energy bills and carbon emissions through investing in energy efficiency and low carbon technologies. For queries about the IETF, contact IETF@beis.gov.uk.

Scotland has a similar IETF scheme. If your site is based in Scotland, you can apply for the Scottish Industrial Energy Transformation Fund (SIETF), or contact them at IETF@gov.scot.

Get finance and support

You might find it helpful to hire a consultant to check when you should carry out a retrofit if your business needs support and has financial resources.

Check our retrofit funding page to find out more about what is available from banks, government schemes and local councils.

Find out about finance and support for your region.

Check case studies to find other SMEs who have successfully cut costs and carbon emissions.