Delivering Home Upgrade Grant (HUG2) Retrofit
AgilityEco, Aran and the Warmer Homes consortium of 31 local authorities, led by Portsmouth City Council, to deliver one of the most successful programmes under the Home Upgrade Grant Phase 2 (HUG2). The £23.8 million scheme focused on improving energy efficiency in off‑gas grid homes, helping low‑income households reduce energy bills while supporting regional net zero goals.
Delivered between April 2023 and March 2025, the programme provided fully funded retrofit and low‑carbon heating measures, enabling residents to live in warmer, healthier and cheaper‑to‑heat homes. The consortium’s delivery accounted for 15% of all HUG2 installations across Great Britain, making it one of the highest‑performing local authority‑led schemes in the country.
Retrofit Measures and Delivery Approach
The programme adopted a whole‑house, resident‑focused approach to retrofit delivery. Homes received a tailored package of measures including air source heat pumps, solar PV, loft and cavity insulation, flat roof and room‑in‑roof insulation, high heat retention storage heaters and modern heating controls. All works were delivered in line with PAS, MCS and TrustMark standards, ensuring quality, compliance and long‑term performance.
Early engagement and foundation meetings helped align stakeholders on programme timelines, reporting requirements and delivery profiles. Detailed assessments and phased installations allowed work to progress efficiently while minimising disruption for residents. Enhanced communications, pre‑installation walkthroughs and comprehensive aftercare ensured residents were supported throughout the retrofit journey.
Outcomes and Impact
Across the Warmer Homes consortium, more than 1160 homes were upgraded, with over 2,200 energy efficiency measures installed. The programme delivered tangible benefits for residents, including improved thermal comfort, more reliable heating systems and estimated annual energy bill savings of £850 per household, contributing to over £1.1 million in annual savings.
In addition to reducing fuel poverty, the scheme helped future‑proof homes against rising energy costs and increasing climate pressures. By replacing inefficient heating systems and improving building fabric performance, the programme delivered lasting improvements to housing quality while reducing ongoing maintenance and energy demand.
The project also achieved strong environmental outcomes, supporting local authority climate commitments with an estimated 2,000 tonnes of CO₂e reductions per year. Our Right First Time delivery model ensured consistently high standards, with all installations independently certified and fully compliant with PAS, MCS and TrustMark requirements.
Long Term Partnership and Social Value
Building on the success of HUG2, Aran and its partners continue to work with the Warmer Homes consortium to deliver the Warm Homes: Local Grant (WH:LG) programme. The delivery framework prioritises long‑term social value, including accredited training opportunities within the supply chain, support for local community organisations and fully funded energy advice for low‑income households.
“AgilityEco have supported us to deliver several
grant-funded domestic retrofit schemes over many years.
Their experience, contacts and well-established installer
network have been invaluable in the success we’ve had
delivering these schemes. Their experience, contacts and well‑established installer network have been invaluable in the success we’ve had delivering these schemes.”
James Hill, Director of Housing, Neighbourhoods & Buildings at Portsmouth City Council