Domestic batteries installed to be used alongside solar PV panels were included as an eligible measure for installation under Wave 3 of the Warm Homes: Social Housing Fund (WH:SHF) in June 20251. The scheme is administered by the Department for Energy Security and Net Zero (DESNZ) and funds energy efficiency upgrades and low-carbon heating measures to homes in England1.
Installations were then paused. In November 2025, a pause on battery installations was announced, because no Microgeneration Certification Scheme (MCS) product standard was in place1. DESNZ has since developed what it calls an interim solution, and grant recipients may resume installation of domestic batteries as of 2nd February 20261. The decision was supported by the MCS Battery Storage Working Group, which provided assurance that domestic batteries on the UK market with UKCA/CE marking, required in the MCS Battery Installation Standard, are sufficiently safe for inclusion in the schemes1.
Batteries installed by grant recipients before they received notice of the pause will be permitted within the scheme as legitimate spend that can form part of the grant, where all other requirements of the guidance are met1. DESNZ states it will not retrospectively require compliance with a future standard, so batteries installed now that follow this guidance will be funded1. Domestic batteries can only be installed under the Warm Homes schemes where the measure complements existing or new solar PV1. For domestic batteries to be eligible, the product must be installed by an MCS certified installer to the relevant MCS installation standard, MCS 30121. Grant recipients are responsible for ensuring installation complies with the latest quality and installation standards, including MCS (MIS3012), PAS 63100 and PAS 20351.
The guidance also sets out the position on other measures. Air-to-air heat pumps are not eligible for the WH:SHF until they can be certified by MCS, which is expected in 20261. Heat batteries will not be eligible until they can be MCS certified; MCS consulted on a Thermal Energy Storage System Standard in March 2025 and announced a pilot in September 20251. Phase Change Material heat batteries for hot water are not currently a formally recognised technology category in SAP and cannot be installed through the scheme until there is a formally approved convention or they are a recognised category1.
| Measure | Status under WH:SHF Wave 3 |
|---|---|
| Domestic batteries alongside solar PV | Eligible from June 2025; paused November 2025; installations may resume from 2 February 20261 |
| Air-to-air heat pumps | Not eligible until MCS certification, expected 20261 |
| Heat batteries | Not eligible until MCS certified1 |
| PCM heat batteries for hot water | Not installable until recognised in SAP or an approved modelling convention exists1 |
Why it matters for households
The fund pays for measures in social housing in England, so the change affects tenants in homes owned by councils and housing associations rather than owner-occupiers applying individually. For a household, a battery paired with solar panels shifts when electricity drawn from the grid is bought, storing daytime generation for evening use. DESNZ states that, as with other eligible measures, domestic batteries should only be installed where it drives energy bill savings for the household to achieve the objectives of the scheme1. The guidance strongly recommends that the Retrofit Coordinator checks whether a preferable Time of Use tariff is available to the household, and that the battery is installed where there is a functioning electricity smart meter, or alongside one if none is present, so the full benefits can be realised1. The extent of any saving for a particular home has not been reported.
What happens next
Wave 3 was originally allocated £1.29bn for delivery from April 2025 to March 2028, with a further £295m of grant funding available through the scheme in FY 2026/271. Grant recipients were previously permitted to continue delivering projects using co-funding for six months after the end of the grant funding window, until September 2028; this has now been extended, allowing them to continue delivery using co-funding until March 20301. Grant funding may be drawn down from 1st April 2025 and must be spent by 31st March 2028, and lead grant recipients must spend all their grant funding by 31 March 20281. Phase Requests should all be submitted by 30th September 2027, and the delivery window for Wave 3 runs to 30th September 20281. DESNZ will communicate to grant recipients in advance of any further requirement coming into effect1.
Sources1 cited
- WH:SHF Wave 3 Scheme Guidance, assets.publishing.service.gov.uk