The thirteenth funding round of phase two of the Energy Redress Scheme is now open to applications and will close 5pm on Tuesday 9 September 2025.

Future rounds of funding are currently planned to launch in November 2025 (Round 14) and February 2026 (Round 15). It is currently expected that the scale of these rounds will be similar to the current funding round, though this is dependent on how quickly current funds are distributed and what new payments are made in future.

Energy Redress & Just Transition Fund Q&A webinar recording 

CEE held a live Q&A webinar with Graham Ayling, Senior Project Manager at Energy Saving Trust on their Energy Redress Scheme & Just Transition Fund. Recording and slides here.

Click here to register and apply!

This latest round of funding is another opportunity to get millions of pounds to the communities that need it the most. A total of £40 million is available as grants to charities and community energy groups across England, Scotland and Wales to support projects that assist vulnerable energy consumers, drive innovation, and help reduce carbon emissions.

For this round of funding, in addition to the usual priority of supporting energy consumers in vulnerable situations under the Main and Small grants funds, we are encouraging projects that support people in vulnerable situations living in Private Rented Sector (PRS) properties.

A total of £40 million is available across six funding streams:

Funds where projects must be led by a Charity. Other organisations may be involved, but the charity must submit the application and be responsible for the funding and project delivery:

  • Small Project Fund: Up to £1M, grants of £20K–£49,999, support energy consumers in vulnerable situations.
  • Main Fund: Up to £25M, grants of £50K–£2M, support energy consumers in vulnerable situations.
  • Impact Fund: Up to £2M, grants of £20K–£49,999, monitoring the impact to households, of energy advice and other interventions.

Funds where projects can be led by a charity, Community Interest Company, Co-operative Society or Community Benefit Society:

  • Innovation Fund: Up to £6M, grants of £20K–£1M, projects that will develop innovative products or services to benefit households.
  • Carbon Emissions Reduction Fund (CERF): Up to £4M, grants of £20K–£1M, projects that will reduce UK carbon emissions and empower households to reduce their carbon footprint.
  • Just Transition Fund: Up to £2M, grants of £20K–£250K, projects that develop community renewable energy which will benefit energy consumers in vulnerable situations. 

Watch this excellent webinar recording which discusses the scope of these funds as well as commonly asked questions. A recent CEE event heard from the Redress team and Andy Heald of Energise Barnsley who is a beneficiary and strong advocate of the scheme.

  • Energy Saving Trust has been appointed by Ofgem to distribute payments from energy companies that may have breached rules. This amounts to tens of millions every year and is distributed in 3-4 rounds each year.
  • Registered Charities, Community Interest Companies, Co-operative Societies and Community Benefit Societies can apply for funds to deliver energy-related projects that meet the scheme priorities and benefit people in England, Scotland and Wales.
  • Charities, Community Interest Companies, Co-operative Societies and Community Benefit Societies must first register with the scheme at least 2 weeks before the funding round deadline so that the Energy Saving Trust can check your eligibility. 

Eligibility 

  • Carbon Emissions Reduction Fund (CERF), Just Transition fund and the Innovation fund: projects can be led by a charity, Community Interest Company, Co-operative Society or Community Benefit Society.
  • Main fund, Small fund and Impact fund: projects must be led by a Charity. Other organisations may be involved, but the charity must submit the application and be responsible for the funding and project delivery

Potential applicants should be aware that the Fund pays quarterly in arrears which means, in practical terms, organisations will need enough cash flow to deliver the first 6 months of the project before they will be paid.

Innovation Fund 

Two potential types of innovative projects which the Scheme may fund:

  1. testing or trialling the roll-out of products or services that are ready to implement but not yet accessible to energy consumers or certain groups of energy consumers 
  2. conducting research or analysis into the development of products or services not yet accessible to energy consumers or certain groups of energy consumers.

Examples of the types of Innovation projects that could be funded include, but are not limited to: 

  • The development of new tools to help specific groups of energy consumers to be able to manage their energy bills better or to control their heating systems.
  • Trialling new business models or interventions to enable households to use more locally generated energy
  • Trialling new energy efficiency measures that could have wide use and impact.

Read more in the Innovation Fund Supplementary Guidance (.pdf)

Carbon Emissions Reduction Fund (CERF)

Will fund projects that can demonstrate measurable and lasting reductions in the carbon intensity of energy end use and accelerate the transition to net zero carbon dioxide (CO2) emissions. 

Projects must have a convincing pathway to significant carbon emissions reduction, usually through the potential for more widespread replication. 

Applicants are encouraged to consider how their projects can address one or more of the systemic challenges for achieving net zero carbon, such as: 

  • Affordability, accessibility and end-user confidence in carbon reduction technologies and the delivery chain. 
  • All projects should also aim to support a just transition to net zero carbon for all energy consumers.

Read more in the Carbon Emissions Reduction Fund Supplementary Guidance (.pdf)

Just Transtiion Fund

The Just Transition Fund will fund development work for community-led renewable energy projects that also benefit energy consumers in vulnerable situations. The fund will support staff time working on developing projects and associated costs including surveys and other preparatory work to develop those projects. This round of the Just Transition Fund is specifically for development costs and will not fund capital costs of renewable energy installations.

To be eligible for the Just Transition Fund, grantees must demonstrate how their projects will bring tangible benefits to energy consumers in vulnerable situations. Projects can also benefit other energy consumers but will need to explain specifically how they will benefit energy consumers in vulnerable situations. This benefit can take the form of direct financial support or empowerment through advice, training and involvement with governance.

Examples of how community renewable energy projects funded by the Just Transition Fund could benefit energy consumers in vulnerable situations are:

  • A community wind or solar farm that directs profits towards creating a long-term fund to
    address fuel poverty (e.g. funding energy advice or energy saving measures for energy
    consumers in vulnerable situations).
  • A community renewable energy project in a deprived area, designed to involve people in
    vulnerable situations in project governance, enabling them to own a stake in the project and
    ensuring local involvement in shaping the project.

Read more in the Just Transition Fund Supplementary Guidance (.pdf)

Our latest Energy Redress webinar (13 March 2025) can be viewed here. Our previous webinar (6 Dec 2022) on making effective community business applications to the Energy Redress Fund can be viewed here

Exclusions: 

Project Type

Projects that CANNOT be funded through the Carbon Emissions Reduction Fund include, but are not limited to: measures addressing climate change and carbon reduction that do not fall within Ofgem’s regulatory area, such as: 

  • tree planting, other sequestration or carbon offsetting initiatives
  • measures addressing transport or organic waste or climate change adaptation projects

Organisation links with Ofgem

  • The Energy Redress Scheme cannot fund activity that directly benefits any organisation that is regulated by Ofgem (or any person or organisation that has close links to any such organisation), whether this is through direct financial gain, positive PR or offsetting the cost of delivering their obligations. 
  • This means Energy Redress projects cannot fund direct referrals into supplier obligations such as the Warm Homes Discount, Priority Services Register or enable Energy Company Obligation measures to be installed. 
  • Projects can raise awareness of these services, but direct referrals should be made by other funded activities or through a third party.

For more information read all the Energy Redress Guidance, you can also contact the Energy Redress team for feedback on a proposed application via energyredress@est.org.uk