Energy Industry Voluntary Redress Scheme

UPDATE (5 Nov 2025): Community energy groups registered with Energy Redress can now apply for all of the Funds under the Energy Redress Scheme.

After years of Community Energy England lobbying Ofgem, we’re delighted to announce that community energy groups based in England, Scotland and Wales are now eligible to apply for the Small and Main project funds as part of the Energy Redress 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.  Funds are available as grants to charities and community energy groups across England, Scotland and Wales to support energy-related projects that assist vulnerable energy consumers, drive innovation, and help reduce carbon emissions.

Future rounds of funding are currently planned to launch in November 2025 (Round 14) and February 2026 (Round 15). It is expected that the scale of these rounds will be similar to the current funding round at around £40m total funding spread across six funds.

Registered Charities and Community businesses (Coops, CBSs, CICs) can apply to these Funds: 

• 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.
• 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. 

(NB the amounts allocated to each fund apply to the current Round 13 but are likely to remain fairly similar).

For Round 13, in addition to the usual priority of supporting energy consumers in vulnerable situations under the Main and Small grants funds, Energy Redress were encouraging projects that support people in vulnerable situations living in Private Rented Sector (PRS) properties. This may continue in future rounds.

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 Transition 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. 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)