Increased funding now available to community energy groups following Ofgem Energy Redress Scheme update

Applications are now open for the fourteenth round of the Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme), with £30 million available to support energy related projects across England, Scotland and Wales. Updated application guidance for the scheme will also increase funding opportunities for community energy groups. 

Community energy groups, including co-operatives, community benefit societies and community interest companies, are now eligible to apply for grants through the Main and Small Funds, alongside registered charities. Funding will support projects that help households most at risk from cold homes and high energy bills.

The scheme also prioritises projects that develop innovative energy related products or services and empower people to reduce their carbon emissions, through the Innovation and Carbon Emissions Reduction Funds.

Previous projects funded through the scheme include impartial energy advice services for people in vulnerable situations and research to ensure new energy technologies meet the needs of elderly and disabled people. Other initiatives have focused on increasing uptake of whole-house energy upgrades and trialling new business models or interventions that enable households to use more locally generated energy. 

Ofgem’s enforcement and compliance activity collects voluntary payments from companies that may have breached Ofgem administered rules. Since 2018, the Energy Redress Scheme has allocated £191 million to fund more than 755 projects across England, Scotland and Wales.

Graham Ayling, senior project manager for the Energy Redress Scheme at Energy Saving Trust, said: “We're delighted to announce that community energy groups are now eligible to apply for the Small and Main Project Funds as part of the scheme. This update will enable organisations at the heart of their communities to support people struggling with their energy bills. Funding is also available in this round for projects that will help the UK transition to net zero in a way that leaves no one behind.”

Cathryn Scott, Regulatory Director for Market Oversight and Enforcement at Ofgem, said: “When suppliers fall short of our standards, we take decisive action through our robust compliance and enforcement work. Recovered funds are used to support vulnerable energy users, and drive innovation and carbon reduction projects. This latest round makes nearly £30 million available to community energy groups helping households most in need across the country.”

The deadline for applications in this funding round is 5pm on 2 December 2025, via the Energy Redress website.

The funding streams available are: 

• The Main Fund, containing £19.5 million – aimed at projects seeking grants between £50,000 and £2 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 £500,000.

• The Small Project Fund, containing £1 million – aimed at projects seeking grants between £20,000 and £49,999 that will support households in vulnerable situations. 

• The Innovation Fund, containing £4.5 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 £3 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 £1 million.

• The Just Transition Fund, containing £1.5 million – 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 £250,000.