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.
- Energy Saving Trust will be administering the scheme until 2024.
- The scheme can provide capital or revenue funding and up to 100% of the project cost where funding cannot be sourced elsewhere.
- Energy Redress Scheme funding can support the development of innovative products or services related to domestic energy use and as such can allocate funding to projects that meet the following criteria:
- Community businesses can apply to the Innovation and the Carbon Emissions Reduction Fund which together disburse 25% of the total allocation. You can apply to the latter for energy efficiency work by strongly emphasising the decarbonisation benefits of the project.
- The Main Fund is open to projects targetting 'vulnerable consumers' and presently is only open to applications from registered Charities. Community energy organisations can partner with Charities to apply.
- Energy advice and energy saving measures not able to be funded through government schemes
- Schemes that provide value for money (i.e. there is a cost per intervention guidance)
- Funds for projects can last up to 2 years
- Minimum grant requests for the Carbon Emissions Reduction Fund and Innovation Fund is £50,000
- Minimum application for the ERF’s Small Fund is £20,000 and £50,000 for the Main Fund
- Projects can apply for £500,000+, with additional supporting documents required
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.
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
- [PG 16 of Advice] 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.
2 potential types of innovative projects which the Scheme may fund:
- 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
- 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.
Carbon Emissions Reduction Fund
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.
Our latest webinar (6 Dec 2022) on making effective community business applications to the Energy Redress Fund can be viewed here
Contact the Energy Redress team for feedback on a proposed application via email@example.com