Tai Clyd decarbonisation pilot project

If you are using this scheme to provide awards of subsidy, you must inform the Subsidy Control Unit: scu@gov.wales.

All-Wales

Tai Clyd Decarbonisation Pilot Project

• Housing Grants, Construction and Regeneration Act 1996 (sections 126-128)
• Section 60 of the Government of Wales Act

The scheme will test and develop tenure-neutral, area-based approaches to domestic decarbonisation in Wales. Its objectives are to reduce household energy bills and fuel poverty, lower carbon emissions, improve thermal comfort and property energy performance, support local jobs, skills and supply chains, and generate evidence to inform future area-based retrofit policy.

The pilot will fund area-based projects delivering whole-house retrofit assessments, advice and appropriate energy-efficiency measures.

Households meeting current Welsh Government Nest fuel-poverty eligibility will receive fully funded measures, while other households will have access to an able-to-pay route and relevant government-funded assistance where available.

The pilots will include resident engagement, quality assurance, aftercare, complaints handling, post-installation EPC reassessment and evaluation of technical and household outcomes.

Welsh Government

The subsidy will support eligible private landlords where their tenants meet the Welsh Government’s Nest scheme eligibility criteria.

While owner-occupiers and private tenants may also benefit from support provided through the pilot, they will not generally be regarded as enterprises for subsidy control purposes unless they are undertaking an economic activity.

• Construction
• Electricity, gas, steam and air conditioning supply

28 October 2026 to 31 March 2027.

£4,000,000

All subsidy awarded under the scheme will be awarded by way of direct grant.

Support will be provided through approved area-based pilot projects delivered by eligible Welsh local authorities and registered social landlords. A qualified retrofit assessor must complete a whole-house assessment for every participating household; this assessment and initial advice will be fully funded regardless of income.

Fully funded retrofit measures will be restricted to households meeting the current Welsh Government Nest fuel-poverty eligibility criteria. Eligible measures will be determined by the assessment and the approved project, may include a limited allowance for necessary remedial work, and must meet applicable installation and quality-assurance requirements, such as PAS 2035 or an equivalent standard and registration with an appropriate body such as TrustMark.

Private landlords may receive support for no more than three properties and must declare that funded improvements will not lead to a rent increase.

Households not eligible for fully-funded measures may access an able-to-pay route and relevant assistance where available, but will fund their chosen installations directly.

Subsidy levels will be based on the measures identified through a whole-house retrofit assessment and limited to the costs necessary to achieve the scheme objectives. For households meeting Nest fuel-poverty eligibility, Welsh Government funding is expected to meet 100% of the approved project costs, including installation and an allowance of up to 5% for remedial work needed to install the measures. Average support is expected to be approximately £20,000–£30,000 per home.

Costs will be assessed against benchmarking from the Nest contract and controlled through approved project budgets, grant terms, procurement, expenditure profiles, evidence of delivery and evaluation requirements. Households on the able-to-pay route will fund their selected measures directly and may interact with relevant government-funded assistance where available.

£30,000

For more information about applying for support under this scheme, please contact:
fuelpovertyandenergyefficiency@gov.wales

For more information about this scheme’s compliance with the Subsidy Control Act 2022, please contact: