Community Energy Fund

Overview

The Community Energy Fund (CEF) is a £10m grant scheme for urban and rural communities to develop energy services to benefit their local area.

The funding will help to kickstart clean energy projects including small-scale wind farms and rooftop solar partnerships, as well as battery storage, rural heat networks, electric vehicle charging points. It can also be used to fund fuel poverty alleviation schemes such as energy efficiency, retrofit, and advice projects.

The new fund follows the success of the Rural Community Energy Fund (RCEF), with an expanded remit to include both rural and urban areas in England.

Aims of the scheme

The CEF aims to empower local people to take control of their energy future by:

• Increasing the number of community-owned low-carbon energy assets
• Supporting communities to reduce energy cost and demand
• Generating local income through community-owned energy assets
• Reinvesting income locally and kickstarting private investment
• Supporting local jobs, growth and volunteering opportunities
• Enabling places to benefit from clean, renewable, local energy

The fund will achieve its aims by supporting the earlier-development stages of community-scale projects.

About the funding

The fund is for the development of projects from concept to investment-ready scheme. It does not provide capital funding for the installation of projects themselves.

Funding will be offered for a Stage 1 Feasibility Grant of up to £40k to produce a feasibility study to establish the technical and financial viability of a project, and/or a Stage 2 Development Grant of up to £100k for a more detailed investigation of the technology, for planning applications and to develop a business case.

Who can apply to the CEF?

The fund is for eligible community-based organisations on England with projects that will bring benefits to the local community. These are:

• Amateur sports clubs
• Charitable Incorporated Organisations
• Community Benefit Societies
• Community Interest Companies
• Co-operative Societies
• Development Trusts
• Faith Groups
• Pre-commencement societies
• Registered charities
• Registered Social Landlords (partnered with a community group)
• Town or Parish councils

Applicants need to show that a good level of community engagement has been carried out, and that there is genuine community support for the project, including plans for ongoing community engagement.

How will the fund be delivered?

The CEF is a national scheme funded by the Department for Energy Security and Net Zero. It will be delivered through the five Local Net Zero Hubs across England, which support the public sector and not-for-profit organisations to develop net zero projects and attract investment.

Eligible applicants should apply to the Fund via their local Net Zero Hub. Full guidance and application documents will be published here when the Fund launches.

Apply for the Community Energy Fund

The North East and Yorkshire Net Zero Hub will run three application rounds for the Community Energy Fund, subject to funding available, with timescales for the first round as follows:

Round 1

Open for applications – 05/12/23

Close for applications – 05/01/24

Round 2

Open for applications – 04/03/24

Close for applications – 05/05/24

Round 3

Open for applications – 19/08/24

Close for applications – 13/10/24

Please send your completed application to enquiries@NEYnetzerohub.com 

If you need any support prior to submitting your application, please contact enquiries@NEYnetzerohub.com

Successful Projects

Round 1 – 

• Broomhaugh and Riding Parish Council – awarded £29,900 to investigate the feasibility of their Tynedale Hydro Electric Project.
• Northumberland Community Energy Ltd – awarded £30,982 to investigate the feasibility of solar PV and accompanying battery storage on 17 buildings in North Northumberland.
• Northumberland Community Energy Ltd – awarded £29,160 to investigate the feasibility of solar PV and accompanying battery storage on 16 buildings in West Northumberland.
• Spennymoor Town Council – awarded £35,500 to investigate the feasibility of a solar development at the former aerodrome site in Spennymoor.
• South Yorkshire EcoFit CIC – awarded £40,000 to investigate the feasibility of a delivery model to provide energy advice to residents across South Yorkshire.
• Todmorden Community Energy – awarded £10,000 to investigate the feasibility of a wind power project in the local area.
• York Community Energy – awarded £19,534 to investigate the feasibility of rooftop solar arrays on 6 buildings in York, with associated outputs supporting the local community and their York Energy Advice service.
• Norham Development Trust Ltd – awarded £100,000 to further develop their wind and solar community project in Norham and bring it to an investment ready level, following feasibility work undertaken through the previous Rural Community Energy Fund.

Round 2

• The Ouseburn Trust – awarded £39,000 to investigate the feasibility of the Trusts owned properties to identify energy efficiency improvements, and opportunities to generate and store electricity, utilise heat pumps, and for an electric charging point for bikes/cargo bikes for local community use, should they be deemed technically feasible.
• CERT CIC – awarded £39,999.20 to investigate the feasibility of solar PV on 150 properties in Hull.
• East Durham Community Development Trust Ltd – awarded £99,410 to further develop their wind and solar community project in Horden, with the aim to provide renewable energy to the end project, the Horden Heat Network, and bring it to an investment ready level.
• East Durham Community Development Trust Ltd– awarded £39,730 to investigate the feasibility of a community owned Anaerobic digestion plant being added to their site in Horden, to provide vital renewable energy to a future planned project Horden Heat Network.
• Weardale Renewables Energy CIC – awarded £39,850 to investigate the feasibility of solar PV at the Heights Quarry site.
• Sycamore Net Zero CIC – awarded £27,050 to investigate the feasibility of a community owned energy hub and heat network in Hexham.
• York Community Energy – awarded £18,608 to investigate the feasibility of rooftop solar arrays on 6 buildings in York.
• Sheriff Hutton Village Hall – awarded £11,340 to further develop the Business Plan for Decarbonising Sheriff Hutton Village Hall, to make the project investor ready. The future aim of the project is to introduce an Air Source Heat Pump as well as battery storage to support an existing solar PV installation and investigate EV charging points.
• Sheffield Renewables – awarded £40,000 to investigate the feasibility of a Solar PV and wind energy generation to contribute to the production of green hydrogen or exported to the grid on a farm in Sheffield.
• Two Churches One Town – awarded £40,000 to investigate the feasibility of replacing existing pipework and radiators, introducing more effective heat emitters, applying ground source or air source heat pumps and the installation of solar PV panels at two churches in Hull.
• SY Ecofit CIC – awarded £40,000 to investigate the feasibility of a delivery model to provide energy advice to fuel poor residents across South Yorkshire.
• Northern Community Power – awarded £21,720 to investigate the feasibility of a solar PV project on a factory roof in Newcastle.
• SY Ecofit CIC – awarded £40,000 to investigate the feasibility of an Anaerobic Digester and production of green hydrogen, with the Anaerobic Digester being it’s power source, on a farm in Sheffield.
• Yorspace YCE – awarded £39,978 to investigate the feasibility of solar PV, battery storage and EV charging points as part of a community owned off grid energy system, at Lowfield Green.
• Grange Villa Community Enterprise– awarded £76,690 to further develop a hydroelectric power (HEP) scheme and progress the project to be investor ready.