Southwark Community Energy Fund Programme in the UK

Deadline: 6-Apr-25

The Southwark Community Energy Fund Programme gives grants to local schools, faith groups and community groups for green energy projects.

These projects will reduce carbon emissions or save energy.

Objectives

• Southwark community energy fund has five key objectives:
  • Objective 1:  To fund community energy projects that reduce carbon emissions and provide benefit to the community
    • Projects need to reduce carbon emissions to help the environment. They should be inclusive and help communities to lower energy bills of community buildings. They should also make the most of green upgrades to earn money for communities. Projects can also try out new ideas and technologies to use little or no carbon.
  • Objective 2: Build the capacity of existing community energy groups and support the creation of new community energy groups in Southwark
    • The fund will help existing and new community energy groups in Southwark. It will help them to work together, share ideas and connect with communities. It will also use local skills, money and enthusiasm to support projects. The projects will improve awareness of climate change and tackle fuel poverty.
  • Objective 3: Create a pipeline of community energy projects that can then proceed with further capital funding
    • Helping future projects will make the community energy sector stronger. By giving some early funding (called ‘seed funding’), the projects can become more affordable and attract more money later. This can also encourage local people to invest by offering community shares.
    • For example, £1 spent on feasibility can unlock ten times more funding at a later stage. This fund will add to other capital funding sources like London Community Energy Fund (Greater London Assembly).
  • Objective 4: Ensure the fund promotes equality, delivers social value and a just transition for the residents
    • They will require that projects and groups that are funded match the diversity of the communities. They will also ensure that they are located throughout the borough.
  • Objective 5: Ensure the fund works to expand the democratic and co-operative economy within Southwark
    • They will help knowledge and skills to be shared within the communities. This will help to make the sector sustainable and identify new sources of funding.

Funding Information

• In total, £400,000 of grant funding is available for the second round of Southwark Community Energy Fund.
• The fund is split into four streams, with grants available in each stream.
  • Stream A – pre-feasibility development
    • Amount available: up to £5,000.
    • A pre-feasibility study is an early look at renewable or retrofit ideas that you have for your building. It looks at the suitability of your ideas before you build a business case. This reduces the number of options taken forward to a more detailed feasibility study. Doing this saves time and money.
    • Funds need to be spent within one year.
  • Stream B – feasibility studies and business case development
    • Amount available: up to £15,000.
    • This stream will fund short-term activities that are working towards the capital stage of a project. It removes financial barriers to project feasibility which helps to unlock the development of community energy projects. Feasibility studies can be funded partially or in full.
    • Funds need to be spent within one year.
  • Stream C – capital projects 
    • Amount available: a maximum of £50,000. This could be:
      • up to 33% of the total cost of your project
      • full or part funding for the cost of a solar installation project, up to a peak output of 20 kilowatts (kWp)
    • This stream will fund projects that have completed feasibility studies. You can apply for a contribution to the capital cost of your project, or for the full cost of the project.
    • Funds need to be spent within two years.
  • Stream D – capacity building for new community energy organisations, training, awareness events and engagement
    • Amount available: up to £20,000.
    • This stream will fund a variety of projects to help make Southwark carbon neutral by 2030 and to tackle fuel poverty. These projects could:
      • increase awareness and encourage behaviour change
      • help increase the capacity of the Southwark community energy sector
      • help establish new community energy groups
    • This stream provides an opportunity to support new community energy groups. They encourage partnerships and collaboration for this.
    • Funds need to be spent within two years.

What they fund?

• Funding available can cover costs relating to a project or activity including:
  • pre-feasibility or feasibility studies (for example to fund initial assessments of your building or to develop a project idea)
  • capital costs (to support the cost of a renewable installation or deep retrofit)
  • core costs (for example consulting fees, staff or office costs to support the project, but not for general staff or office costs)
  • project costs (for example venue hire, project worker)
  • project management costs

Eligibility Criteria

• The fund is open to all groups with charitable or not-for-profit aims, that are based or work within Southwark.
• They welcome applications from groups who have not been involved in energy projects before. You do not have to be an energy or environmental group.
• Groups that are able to apply:
  • existing community and voluntary groups who wish to do energy projects
  • new and existing Community Energy Groups (CEGs)
  • Community Interest Companies (CICs), Community Benefit Societies (CBSs), Cooperatives, or similar
  • registered tenants’ and residents’ associations, or tenant management organisations charities
  • schools, colleges and early years settings
  • faith groups
  • a group of residents, or neighbours who wish to form a community energy group or cooperative

For more information, visit Southwark Council.