How Social Landlords Can Become Powerhouses of Sustainability

In the fight against climate change, social housing is starting to emerge as one of the innovators. Now, with the Government’s Warm Homes: Social Housing Fund wave 3 recently launched, social landlords are increasingly becoming pivotal players in this transformation, evolving from mere providers of affordable housing to powerhouses of sustainability, explains James Williams, co-founder and CEO at Sero.

Publication: Energy Manager Magazine

Social Landlords: The New Powerhouses

In this evolving landscape, social landlords are not just passive recipients of government funding—we’re starting to see a number of them becoming the driving force behind local decarbonisation efforts. With extensive property portfolios and a duty of care to their residents, social landlords are well positioned to scale up green initiatives and lead the way in energy-efficient living.

By embracing the government’s target to electrifying more homes, social landlords are emerging as sustainability pioneers in two ways:

  1. Driving Innovation in Retrofits: Social landlords are increasingly moving away from only applying “fabric-first” approaches, which focus on improving the building envelope (walls, roofs, floors), effectively wrapping the building to enhance energy efficiency. More and more they are also implementing heating system upgrades including Heat Pumps and Solar PV with batteries.
  2. Scaling Renewable Energy Projects: Some social landlords are starting to look at ways that transform their housing stock into micro powerhouses. Funding for Solar PV and battery storage is being increasingly explored through private finance, to enable landlords to either go beyond EPC C or deliver more homes at scale. These renewable energy technologies not only reduce carbon emissions but also have the ability to generate a payback mechanism for landlords whilst also lowering resident energy bills.

Challenges and Opportunities Ahead

Funding is still a key barrier for delivering Retrofit at scale and if we want to meet both the government’s 2030 and 2050 targets, then more landlords need to start delivering homes in their thousands rather than hundreds.  It’s important to remember that government funding, while seemingly generous, only covers 10-15% of the costs. Its purpose is more to stimulate and enable markets, not to sustain them for the long term.

For these future power stations to scale up, we need to be able to bring innovative funding models together – which requires both private investment and government funding – that can work alongside their highly regulated nature to benefit both parties and understand where the true costs hit.

The good news is, we’re starting to see this happen. The WH:SHF Wave 3 funding opportunity encourages applicants to explore innovative funding options beyond the SHF’s scope and investment.

Furthermore, the recent announcement that the government’s National Wealth Fund will look to provide guarantees for two high street banks to deliver a £1bn in funding to support retrofit in the sector, is another positive sign.

From Sero’s perspective, we’re seeing much interest from both landlords and private finance institutions who are keen to use our Energy as a Service model to fund and upgrade homes. The concept being they utilise government funding for their fabric first and heat pump improvements and private finance for installing solar and battery. By charging residents fairly for their consumption and optimising surplus energy revenue streams, they can generate a payback mechanism.

Driving Social Impact

Beyond the environmental impact, the funding has an equally significant social dimension. With many social housing residents facing fuel poverty, energy efficient homes can drastically reduce heating bills.  It’s hoped that lower bills will mean residents will heat their homes in winter months, improving their comfort and health, reducing serious issues such as damp and mould, as well as enabling surplus funds that can be spent on other essentials such as food as the cost-of-living crisis continues to bite.

Leading the way for the rest of the UK

It’s clear that social landlords are no longer simply housing providers—they are becoming vital agents of change in the UK’s journey to net zero and the energy system. By investing in creating energy-efficient homes and renewable energy solutions, they are not only reducing carbon emissions but also improving the quality of life for residents and driving local economic growth.

Looking ahead, as private landlords, developers, and homeowners increasingly face the need to upgrade their properties to meet climate targets, the social housing sector is positioning itself as a leader in sustainability—demonstrating that decarbonisation is not just a technical challenge but a social and economic opportunity.

In this sense, social landlords truly are becoming the new powerhouses, reshaping the future of housing to be greener, fairer, and more resilient.

By embracing this role, social landlords are set to influence not just the homes we live in but the communities we retrofit and regenerate for tomorrow. Their leadership in sustainable living could pave the way for the UK’s broader energy transition—one retrofit at a time.