A Guide to the Optimised Retrofit Programme: 2026 Funding & Strategy
In this guide, we explore the latest developments in the Optimised Retrofit Programme (ORP) and how Building Energy Experts – the 2025 Unlock Net Zero ‘Supply Chain Partner of the Year’ – is bridging the gap between theoretical energy models and real-world performance for Wales’ leading social landlords. From managing multi-measure PAS 2035 frameworks to ensuring strict compliance with WHQS 2023 and Awaab’s Law, here is how we help you secure and deliver your next round of funding.
At a Glance:
- Latest News: £98.75 million investment announced in January 2026 for the 2026/27 Funding Round.
- The “Optimised” Approach: Why the Welsh Government mandates complex, multi-measure, fabric-first strategies over single-measure fixes.
- Moisture-Safe Rollouts: Navigating the legal overlap between PAS 2035, WHQS 2023 and Awaab’s Law for traditional and hard-to-treat properties.
- Codi Group (formerly Pobl) Case Study: A breakdown of our work managing retrofit packages across complex housing stock in Newport and Swansea.
- Codi Group (formerly Pobl) Case Study: How we manage multi-contractor compliance and Targeted Energy Pathways (TEPs) across complex housing stock.
- Deadline Alert: Navigating the timeline for ORP 3 Year 4 and the 2027 TEP requirements.
What is the Optimised Retrofit Programme?
The Optimised Retrofit Programme (ORP) is the Welsh Government’s flagship initiative designed to decarbonise the nation’s social housing stock. Unlike “blanket” retrofit schemes, ORP focuses on a data-driven approach to find the most cost-effective, logical “pathway” to net zero for every individual home.
Since its inception in 2020, the programme has invested over £466 million, transforming more than 31,000 homes across Wales.
Latest News: £98.75 Million Funding Boost
On the 23rd of January 2026, Cabinet Secretary Jayne Bryant confirmed an additional £98.75 million in funding for the next round of ORP to make social homes across Wales warmer, healthier and fit for the future. This investment ensures that the momentum gained during ORP 3 continues into the 2026/27 financial year.
Key takeaways from the 2026 announcement:
- Scaling Up: This funding is earmarked for social landlords to continue upgrades at pace, targeting thousands more homes this year.
- The Green Economy: The announcement explicitly links funding to local job creation and the training of the next generation of retrofit specialists.
- Holistic Improvements: Support continues to cover a “fabric-first” mix, including external wall insulation, solar PV, heat pumps and mandatory environmental monitoring.
The Legal vs. Strategic Framework
For social landlords, a compliant retrofit in Wales effectively requires two roadmaps working in tandem:
- The Medium Term Improvement Plan (The Rulebook): A mandatory 20–30 year plan under PAS 2035 ensuring that measures are sequenced safely. Crucially, this involves expert damp, mould, and ventilation diagnostics to ensure compliance with Awaab’s Law – meaning ventilation is upgraded before airtightness is increased, designing out moisture risk. This is your compliance lodgement and the operational requirement for TrustMark.
- The Target Energy Pathway (The Goal): Required by the Welsh Housing Quality Standard (WHQS 2023). This identifies the specific, affordable route to a low-carbon heating system for each specific property type. Our independent Retrofit Assessors, Coordinators and Designers map these comprehensive TEPs to act as the digital passport and strategic asset for your home’s future.
Don’t confuse a Lodgement with a Strategy. A PAS 2035 MTIP gets you through the door for funding; a Target Energy Pathway ensures your stock remains compliant with WHQS through 2034.
Our Proven Expertise: Codi Group (formerly Pobl)
Building Energy Experts is proud to be the trusted PAS 2035 supply chain partner for Codi Group, the largest housing provider in Wales. To date, we have delivered comprehensive Retrofit Assessment, Coordination and Design packages across three major schemes in Newport and Swansea.
- Managing Complexity: Successfully coordinating multi-measure integrations across a challenging mix of 1950s–60s flats and pre-1900 “hard-to-treat” solid stone terraces.
- Moisture-Safe Diagnostics: Using BS 40104 compliant assessments and rigorous airtightness testing to design out damp and mould risks prior to installation.
- Bridging the Performance Gap: Selecting measures for the MTIP that prioritised real-world energy efficiency and tenant wellbeing, while managing multi-contractor compliance strictly within ORP grant limits.
The 2026 Compliance Timeline
Social landlords must manage two simultaneous timelines: finishing current works and preparing for the new funding round.
- 6th of March 2026: Deadline for reporting progress on WHQS Requirement 4.
- 31st of March 2026: Final deadline for ORP 3 Year 4 current works to be completed and lodged on the TrustMark Data Warehouse.
- April 2026: New funding cycle begins with commencement of the next round (utilising the newly announced £98.75m).
- 1st of October 2026: Annual Compliance Monitoring Report (CMR) due to Welsh Government.
- The 31st of March 2027: All social landlords must demonstrate significant progress toward a full Target Energy Pathway (TEP) for every home in their stock.
Ready to Deliver on Your Next Round of Funding?
With the ORP 3 Year 4 window closing and the new £98.75m funding cycle launching this April, the pressure is on to deliver complex, multi-measure retrofits that satisfy both WHQS 2023 and Awaab’s Law. Getting the funding is only step one; now is the time to ensure your rollout strategy is fully compliant and ready to execute on the ground.
At Building Energy Experts, we do more than basic stock modelling. As an award-winning PAS 2035 supply chain partner, we provide the technical bridge between strict government funding requirements and real-world delivery. From independent Retrofit Coordination and moisture-safe Design to mapping comprehensive Target Energy Pathways (TEPs), we de-risk your rollout so you can focus on delivering warmer, healthier homes.
Don’t leave your ORP compliance to chance. Contact our expert team today to discuss your 2026/27 retrofit pipeline.