Community Energy Fund
The Community Energy Fund (CEF) is a national £10m grant scheme for urban and rural communities to develop energy services to benefit their local area. The South West Net Zero Hub are delivering CEF in the South West.
The funding will help to kickstart community driven clean energy projects including wind farms and solar PV projects, as well as battery storage, rural heat networks and electric vehicle charging points. It can also be used to fund feasibility assessments for fuel poverty alleviation schemes and 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.
CEF Application Window 4 is now closed. Information on how to apply, dates of future application windows and details of the projects awarded funding so far are available below.
Apply
The aims of the fund are to:
- Increase the level of community and locally owned renewable and low carbon energy assets to make progress towards the Government’s net zero carbon emissions targets.
- Support communities by helping them to reduce energy costs or generate income through community owned energy assets, reinvesting income locally, or services to reduce energy demand.
- Promote growth through the creation of jobs and volunteering opportunities in the communities where projects are located.
The funding is for the development of projects from a concept to an investment-ready scheme. It does not provide capital funding for the installation of projects themselves.
Funding will be offered for Stage 1 (Feasibility Grant up to £40k) and Stage 2 (Full Business Planning Grant up to £100k) projects.
Stage 1 grants are available to scope project feasibility (financial, practical and legal), including further community consultation and consultancy costs for the development of a feasibility report, to establish project viability, to establish a landowner Heads of Terms, and to identify and eliminate risks such as planning permission and grid connection.
Stage 2 grants are available for projects that have been found to be feasible, with a good chance of securing planning permission and being implemented, to cover more detailed investigation of the relevant technology, planning applications, advanced landowner agreements and development of a robust business case to attract sufficient investmentk
Applications must be led by legally constituted voluntary, community and social enterprise organisations in England only. Eligible incorporation types are:
- Charitable Incorporated Organisation (CIO)
- Community Benefit Society (CBS or Bencom)
- Community Interest Company (CIC)
- Co-operative Society
- Development Trust
- Pre-commencement society
- Registered charity (including eligible faith groups, sports clubs, etc.)
- Registered provider of social housing (this can include local authority or social landlord owned social housing)
- Registered Society
- Town or Parish Council
Any project(s) developed through CEF funding should be designed to be at least 50% community-owned. Applicants do not need to be community-owned at the point of application, but if you are not community-owned then you may need to establish a new eligible incorporated body at a later point that can comply with these requirements. A definition of what constitutes ‘community ownership’ for the purpose of this fund can be found in the guidance.
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.
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 local authorities and not-for-profit organisations to develop net zero projects and attract commercial investment.
Eligible applicants will be supported by their local Net Zero Hub’s CEF officer to apply to the fund.
Greater South East Net Zero Hub | Midlands Hub | North East and Yorkshire Net Zero Hub | North West Net Zero Hub.
We have published guidance and application forms below to enable groups to begin the application process.
Please complete the pre-application form to register an interest in participating in CEF. While this is not part of the formal application process, we strongly advise you to complete the form to receive advice and support with your application. We will be in touch to arrange a follow up meeting once you have completed the form.
Guidance and application forms
- Download CEF Pre-application Form Or complete the form online here
- Download CEF Stage 1 Guidance
- Download CEF Stage 1 Application Form
- Download CEF Stage 2 Guidance
- Download CEF Stage 2 Application Form
- Download CEF Feasibility Study Report Guidance
- Download the DRAFT Grant Offer Letter for information
2024 and 2025 application windows:
We will prioritise Stage 2 applications for the September and November windows. For this reason we will not be in a position to award any Type B grants until further notice.
South West Net Zero Hub – Community Energy Fund windows | ||
Window 3 | Open 17 June | Closed 20 August |
Window 4 | Open 10 Sept | Closed 4 Nov |
Window 5 | Open 18 Nov | Close 13 Jan |
Please contact communityenergy@westofengland-ca.gov.uk if you have any questions about applying to the fund.
Projects awarded funding
Click on the plus sign for details of some of the projects awarded funding so far, with more to follow.
Window 1
Project location: Bath and North East Somerset
Award: £39,966
Objective: To test the local supply model to 100 households on a site which has grid capacity and is located on a primary circuit within the Green Belt. Community benefit for local residents includes discounted electricity prices, fuel poverty and decarbonisation project grants and an opportunity to invest locally with environmental improvement via biodiversity net gain requirements of the development.
Tech: Solar PV (800kWp – Direct Current) low voltage metered supplyT
Expected outcome: The study will produce written pre-planning advice, heads of terms with the landowner, an understanding of a viable Power Purchase Agreement (PPA) strike price and legal advice to enable local energy supply and options and lease.
Project location: Bath & North East Somerset
Award: £40,000
Objective: To trial and understand whether excess spill of renewable energy generation from two existing school rooftop solar arrays can supply electricity to local properties nearby. The supply would be via an Energy Local club with the benefit of cheaper tariffs, thanks to being located on the same primary circuit (licence-exempt local supply rather than third party licenced energy supplier).
Tech: Solar PV powered local energy system
Expected outcome: To understand the balancing, settlement and billing challenges for supplying power to local households and how to overcome them.
Project location: Somerset
Award: £36,350
Objective: To design a community owned sustainable business model and plan for a retrofit bulk buying and installation scheme to serve households in Highbridge and Burnham on Sea. Whilst there is interest in bulk buying solar PV, the project aims to broaden interest in energy efficiency.
Tech: Retrofit services (insulation, heat, energy generation)
Expected outcome: To gain insights on household demand for retrofit measures, identify educational needs and engagement strategies to guide household and landlord decision-making, understand variables for scalability and identify 15-20 households to take part in a bulk-buying project.
Project location: Dorset
Award: £40,000
Objective: To assess the feasibility of a community owned retrofit service tailored to market towns and rural areas. This will be designed through community engagement, household cost assessments, training, co-ordination of installation works and assessing use of low carbon materials
Tech: Energy efficiency retrofit services for households and community buildings
Expected outcome: By designing a pilot project based in and around the rural location of Bridport, Dorset CE and their partners will understand whether their retrofit model is financially viable, replicable and effective as a route to install energy efficiency measures in domestic and community buildings.
Project location: Devon
Award: £39,667
Objective: To assess the feasibility of locating a solar array on NHS land which will be owned and managed by ECOE, financed by a community share offer and supply electricity to the hospital via a Power Purchase Agreement (PPA).
Tech: 3MW ground mount solar array
Expected outcome: The study will create an understanding of potential planning barriers, of balancing electricity generation and consumption to operate within local grid constraints, and legal terms for an NHS-Community Group model covering lease, heads of terms, PPA and land classification restrictions.
Project location: Bristol and South Glos
Award: £40,000
Objective: To explore the feasibility of aggregating rooftop solar and battery installations on a pilot of 100 homes which would create a virtual power plant. The project will focus on deprived neighbourhoods only, bringing community benefit through reduced electricity bills for households that have barriers to installing energy generation assets, and a neighbourhood climate resilience fund.
Tech: Rooftop Solar PV and batteries in multiple domestic properties
Expected outcome: To identify routes to overcome smart grid, re-distribution and legislative challenges and develop a viable working model that can be presented to investors who have already shown an interest in the pilot project.
Project location: Somerset
Award: £26,377
Objective: To explore the feasibility of providing green, affordable space heating for eight new tenanted properties using a ground source heat network located underneath. The heat pump driving the network would be powered by rooftop solar PV on the properties. Longer term the heat source would be shared with nearby properties providing a wider community resource.
Tech: Solar PV powered heat network
Expected outcome: To understand the feasibility and replicability of rooftop solar powered heat networks in market towns and large villages that can be extended, and whether community share finance is viable for this model.
Window 2
Project location: Wiltshire
Award: £19,200
Objective: To explore the feasibility of increasing the generation capacity of an existing ground mount solar array with further panels and possibly battery storage to potentially supply electricity to 50 local households and different community benefit models eg discounted electricity.
Tech: Solar PV and battery storage
Expected outcome: To obtain pre planning advice for the extension of the solar array and enable the project to move forward in the grid connection queue with the DNO. To scope out landowner consent/lease and to help Nadder to leverage local community investment funding.
Project location: North Somerset
Award: £25,040
Objective: To explore whether a microgrid between rooftop solar arrays on several community buildings with a battery and EV charging would generate sufficient income to create a viable community benefit fund as well as reduce the running costs of community buildings in Backwell.
Tech: Solar PV, battery storage and EV charging points
Expected outcome: To understand if the proposed microgrid arrangement has a viable business case to benefit the community directly through a community benefit fund and indirectly through reduced running costs of the buildings which serve the community.
Project location: South Hams, Devon
Award: 39,534
Objective: To explore the feasibility of creating an energy sharing network using multiple community buildings. The systems options being considered are private wire, virtual power plant and Energy Local supply model (licence-exempt buying and selling electricity for generators and consumers on a single primary circuit).
Tech: Solar PV, heat network, heat pumps, EV charging with EV to grid (V2G)
Expected outcome: The study will provide understanding of which approach is most viable in terms of capital cost, business case and gaining community support. In addition, it will scope out the full range of planning conditions and requirements for the scheme to gain planning permission.
Project location: Gloucester and Wiltshire
Award: £40,000
Objective: To explore the feasibility of a community owned solar farm which sells electricity at a discount via an Energy Local (licence exempt) supply model. The project will also explore the potential for agrivoltaic solutions which integrate regenerative farming with solar energy production.
Tech: Solar PV
Expected outcome: Along with identifying the first site to proceed, the study will produce a landowner agreement, a budgetary connection offer from the DNO and pre-planning advice from the council. It will also help build a pipeline of further community energy sites to develop in the area.
Project location: Cornwall
Award: £40,000
Objective: To explore the best energy generation options for a site of eleven Grade II listed flats to create a District Heating system that also exports surplus electricity to the grid. The project combines microgeneration and shared systems with heritage buildings. Surplus revenue would be disbursed as grants to the community via Looe Town Council.
Tech: Solar PV with heat network
Expected outcome: To have a full technical feasibility assessment of the microgeneration equipment and system design, plus a detailed assessment of export potential to the grid. The study is expected to be replicable across of further complex and difficult to treat sites both in Cornwall and nationally.
