About the Fund

The £25.5 million VCSE Energy Efficiency Scheme scheme aims to help voluntary, community, and social enterprise (VCSE) organisations in England improve their energy efficiency.

It is part of the package of over £100 million of support announced by the Government at the Spring Budget 2023 to help frontline delivery organisations with the increased cost of living.

The scheme is being delivered by a consortium of partners, led by Groundwork UK and supported by Energy Saving Trust, Centre for Sustainable Energy, Locality, and Social Investment Business.

The VCSE Energy Efficiency Scheme has 2 elements. Please note that applications for both elements of this fund have closed for applications:

1. Eligible organisations could previously apply for the cost and delivery of an independent energy assessment. This helps identify how to reduce bills through measures such as improving or installing new energy features in the building, or changing how energy is used. These assessments will be useful to organisations whether or not they apply for the second element.
   
   This part of the scheme opened to applications in December 2023, and closed in June 2024.

1. Organisations with an energy assessment were then eligible to apply for a capital grant to install the recommended energy efficiency measures in their premises.
   
   This part of the scheme opened to applications in January 2024 and organisations could apply until 14 August 2024. Applicants needed a satisfactory independent energy assessment in order to apply. All capital grants must be completed by 31 March 2025, so all organisations, but particularly those with more complex projects, were encouraged to apply early to ensure sufficient time for the installation of measures.

To apply for an independent energy assessment, organisations had to:

• be based and operating in England

• be a VCSE organisation, with charitable, benevolent or philanthropic purposes

• be delivering frontline services or operating a hub (a building) that delivers multiple frontline services

• be able to evidence the need for energy efficiency support

• be able to evidence that they are financially sustainable

In addition to the independent energy assessment eligibility criteria set out above, to have been eligible for a capital grant, organisations must:

• have been operating for a minimum of 2 years

• have an independent energy assessment identifying the capital energy-saving measures they wish to apply for (delivered through this scheme or outside of it)

• provide evidence that the energy efficiency measure(s) they are requesting a grant for will enhance their financial resilience and support the delivery of frontline services

• have a long-term arrangement with their premises, either owning the building or having a minimum of 2 years left on the lease

• have permission to make the alterations required to your premises, including the consent of the building owner (where required) and have applied for any relevant planning permissions or environmental licences

• ensure that any buildings that are leased have an Energy Performance Rating of A to E, or that the landlord has an exemption registered in accordance with regulation 36(2) of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (see the landlord guidance for more information)

• ensure that projects can be delivered within the scheme’s timeframes- projects must be completed by 14 February 2025 and all claims submitted by 28 February 2025 (this is to ensure that all funds are paid to successful applicants by 31 March 2025)

• not be suitable for blended finance or loan support through other energy focused schemes

Priority was given to organisations:

• for whom energy was the biggest concern

• directly supporting individuals and communities with critical needs, particularly those related to the rising cost of living

• with a turnover of less than £1m a year

• projects that had the best value for money (for capital grants only)

Practical support will be available to help organisations manage capital installation projects.

More information on the scheme is available at the VCSE Energy Efficiency Scheme website.

Research and Evaluation

• Energy Efficiency Scheme: Interim Evaluation Report
• Energy Efficiency Scheme: Final Evaluation Report