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£30 Million Available Through Ofgem Energy Redress Scheme
Charities, community energy organisations and social enterprises across England, Scotland and Wales can now apply for a share of £30 million through the latest round of the Ofgem Energy Redress Scheme.
The first funding round of Phase Three opened on 2 June 2026 and offers significant opportunities for organisations supporting households struggling with energy costs, tackling fuel poverty, reducing carbon emissions and developing innovative energy solutions. Applications close at 5pm on 23 June 2026.
What is the Energy Redress Scheme?
The scheme distributes voluntary payments made by energy companies that may have breached Ofgem regulations. The funding is managed by Energy Saving Trust and supports projects that benefit energy consumers, particularly those in vulnerable situations. Since its launch in 2018, the scheme has funded hundreds of projects and supported more than 900,000 households across Great Britain.
Who Can Apply?
Eligible organisations include:
- Registered charities
- Community Interest Companies (CICs)
- Community Benefit Societies
- Co-operative Societies
- Community energy organisations
Projects must benefit communities in England, Scotland or Wales.
Funding Available
Main Fund – £19 Million
Grants from £50,000 to £2 million are available for projects supporting households in vulnerable situations who are struggling with energy costs.
Impact Fund – £1 Million
Grants from £20,000 to £500,000 are available for organisations monitoring and evaluating the impact of energy advice and support interventions.
Small Project Fund – £1 Million
Smaller grants of £20,000 to £49,999 are available for projects supporting vulnerable households.
Innovation Fund – £4.5 Million
Grants from £20,000 to £1 million are available for innovative energy-related products, services and approaches that benefit households.
Carbon Emissions Reduction Fund – £3 Million
Funding of £20,000 to £1 million is available for projects helping households reduce carbon emissions and lower their environmental impact.
Just Transition Fund – £1.5 Million
Grants from £20,000 to £250,000 are available for community renewable energy projects that benefit vulnerable energy consumers while supporting the transition to net zero.
Organisations can submit one application as the lead partner during this funding round.
Opportunities for the VCSE Sector
This funding could support a wide range of activities including:
- Energy advice and fuel poverty support services
- Community outreach projects helping residents manage energy costs
- Retrofit and energy efficiency initiatives
- Community-owned renewable energy schemes
- Research and innovation projects
- Programmes supporting vulnerable groups, including older people, disabled people and low-income households
With energy affordability remaining a significant challenge for many communities, this fund offers an important opportunity for organisations to develop new services and expand existing support.
Application Deadline
Applications close: Tuesday 23 June 2026 at 5pm
Organisations not already registered with the scheme should complete the registration process as soon as possible to allow time for eligibility checks.
Find Out More and Apply
The official Energy Redress Scheme guidance, eligibility criteria and application information can be found at:
Application guidance and supporting documents are available here:
