£15m available for charities and community groups through the Ofgem Energy Redress Scheme
The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) has launched its second funding round, opening for applications on Monday 21 September 2026.
£15 million is available for charities and community energy groups, including community interest companies, co-operative societies and community benefit societies, through six funding streams.
Eligible projects include those supporting households most at risk of cold homes and high energy bills, developing innovative domestic energy products and services, and reducing carbon emissions across England, Scotland and Wales.
Ofgem’s enforcement and compliance work collects voluntary payments from companies that may have breached its rules. Since 2018, the Energy Redress Scheme has funded 887 projects that have supported over one million households across England, Scotland and Wales.
Previous projects have delivered frontline energy advice and casework for people in vulnerable situations, alongside targeted support and tailored services for those with more complex needs. Projects have also included initiatives to increase uptake of whole-house retrofits and community energy generation, as well as trials of new business models to help households make better use of locally generated energy.
Graham Ayling, senior project manager for the Energy Redress Scheme at Energy Saving Trust, said:
As many households continue to face high energy costs, this funding can help deliver vital support, drive innovation and enable communities to play an active role in the transition to a more sustainable energy future. We encourage charities and community energy groups to apply and look forward to supporting projects that deliver lasting benefits for people most in need.
Graham Ayling, senior project manager for the Energy Redress Scheme
Cathryn Scott, Regulatory Director of Market Oversight and Enforcement, said:
When energy companies fall short of the standards we expect, our compliance and enforcement work ensures that they are held to account, and consumers benefit from redress payments.
The Energy Redress Scheme has already supported over 800 projects so far across Great Britain, helping people in vulnerable circumstances and supporting innovative community energy projects. This latest £15 million funding round will enable that important work to continue.
Cathryn Scott, Regulatory Director of Market Oversight and Enforcement
The funding streams available are:
- The Main Fund, containing £9.5 million – aimed at projects seeking grants between £50,000 and £1.5 million that will support households in vulnerable situations.
- The Impact Fund, containing £500,000 – aimed at projects monitoring the impact to households, of energy advice and other interventions. Applicants can apply for grants between £20,000 and £250,000.
- The Small Project Fund, containing £500,000 – aimed at projects seeking grants between £20,000 and £49,999 that will support households in vulnerable situations.
- The Innovation Fund, containing £2.25 million – aimed at projects that will develop innovative products or services to benefit households. Applicants can apply for grants between £20,000 and £1 million.
- The Carbon Emissions Reduction Fund, containing £1.5 million – aimed at projects that will reduce UK carbon emissions and empower households to reduce their carbon footprint. Applicants can apply for grants between £20,000 and £750,000.
- The Just Transition Fund, containing £750,000 – aimed at projects that will develop community renewable energy which will benefit energy consumers in vulnerable situations. Applicants can apply for grants between £20,000 and £200,000.
The deadline for applications for this funding round is 5pm on Monday 12 October 2026, via the Energy Redress website.