Ofgem Energy Redress Scheme offers £30m to community energy groups
Howard Lake | 21 November 2025 | News
Applications are now open for the fourteenth round of the Ofgem Energy Industry Voluntary Redress Scheme. Selected energy-related projects across England, Scotland and Wales will receive a total of £30 million.
Funding will support projects that help households most at risk from cold homes and high energy bills.
Community energy groups, including co-operatives, community benefit societies and community interest companies, together with registered charities are now eligible to apply for grants through the Main and Small Funds.
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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 funded projects
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 organisations have used the funding to focus on increasing uptake of whole-house energy upgrades and trialling new business models or interventions that enable households to use more locally generated energy.
Where the funding comes from
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.
Types of funding
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.
Organisations can submit one application as a lead partner per round across all the funds. Funding rounds are launched quarterly.
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 to this funding round is 5pm on 2 December 2025, via the Energy Redress site.
- Energy Redress Scheme offers another £40 million (21 August 2025)
- British Gas Energy Trust reopens grant fund (1 August 2025)
- £1 million prize opens for AI innovations in energy environment and intrastructure (18 December 2023)
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.