HUG2 Retrofit and Decarbonisation, Darlington and Tees Valley

A whole-house retrofit programme was delivered to improve the energy efficiency of 81 off-gas grid homes across Darlington and the Tees Valley.

Using a fabric-first approach, the scheme combined insulation upgrades, low-carbon heating systems, solar PV panels, battery storage and improved glazing to reduce energy demand, tackle fuel poverty and support decarbonisation.

The works helped improve EPC ratings, creating warmer, more energy-efficient homes while contributing to  UKnet zero ambitions.

Delivered between June 2024 and March 2025, the HUG2 Retrofit and Decarbonisation programme improved the energy efficiency of 81 off-gas grid homes across Darlington and the Tees Valley. Working under the Home Upgrade Grant (HUG2), the scheme targeted properties with poor energy performance, helping to reduce fuel poverty while supporting the UK's net zero ambitions.

A bespoke retrofit package was developed for each property, following a fabric-first approach and incorporating measures such as insulation upgrades, air source heat pumps, solar PV panels, battery storage and improved glazing. The works were designed to improve EPC ratings while responding to the specific needs of each home.

Working within occupied properties required careful planning and resident engagement, with post-installation inspections completed on every property to ensure quality standards were achieved.

The programme demonstrated the benefits of tailored retrofit solutions, delivering lower carbon emissions, improved thermal comfort and reduced energy costs for residents across the region.

The programme improved the energy performance of 81 off-gas grid homes across Darlington and the Tees Valley, helping residents lower their energy costs, reduce fuel poverty and benefit from warmer, more efficient homes. Through a combination of fabric-first measures and low-carbon technologies, the scheme supported the ambition to raise EPC ratings while contributing to the UK's net zero targets.

The successful delivery of bespoke retrofit solutions across a varied housing stock demonstrated the effectiveness of a whole-house approach to decarbonisation. By combining technical expertise, resident engagement and robust quality assurance processes, the project provides a strong foundation for future home energy efficiency and retrofit programmes across the region.

The varied age, construction type and condition of the homes required bespoke approaches to retrofit design and delivery. Each property was individually assessed to identify the most effective combination of energy efficiency measures while ensuring compatibility with the building's existing structure and performance requirements.

As properties were located off the gas grid and had differing energy performance requirements, retrofit packages varied significantly, ranging from insulation upgrades to renewable technologies, heating system replacements and battery storage. Careful assessment and coordination were required to determine the most effective combination of measures for each property while achieving targeted EPC improvements.

Additional challenges arose from delivering works within occupied homes, requiring careful sequencing, clear resident communication and strict programme management. Through detailed planning and quality assurance processes, Esh successfully delivered improvements across 81 properties while minimising disruption to residents and maintaining high standards of safety and compliance.

The HUG2 Retrofit and Decarbonisation programme delivered wider benefits for local communities alongside its environmental objectives. Almost £500,000 was invested in local supply chains, helping to support businesses and employment opportunities across the region.

The project also promoted skills development and careers in construction through work experience placements and engagement with local schools. Esh delivered 31 hours of STEM activities and educational support to primary and secondary school students, helping to inspire future talent and raise awareness of opportunities within the construction industry.

In addition, the team contributed 24 volunteering hours at King's Foodbank, supporting local residents through practical community initiatives. The contract also supported local employment, with four full-time equivalent local roles hired or retained during the delivery of the programme.