A total of £2.3 million in grants is being distributed to thirteen organisations across England, Scotland and Wales, to support the development of community renewable energy projects. These projects aim to benefit vulnerable residents by reducing energy bills and promoting carbon reduction initiatives.

The fund will also build the capacity of the community energy sector to deliver impactful renewable energy projects and demonstrate how a just transition to net zero can benefit everyone.

Community Energy Scotland will receive £185,750 to support its Cowal Peninsula Community Wind Pioneers project. The project will explore the best routes to community ownership, ensuring that local people can benefit from a long-term, sustainable income from local natural resources.

Darragh Keenaghan, project manager at Community Energy Scotland, said: “This funding allows us to provide support and expertise to Cowal’s communities to harness the potential of community-owned renewable energy. By mapping out viable options, including repowering, shared ownership, and new community-led projects, we hope to create a long-term income stream that will help tackle fuel poverty and support just transition initiatives.

“This project is about local people having a real say in their energy future and ensuring the benefits of renewables stay within the community.”

Since 2018, the Energy Redress Scheme has supported 660 projects in England, Scotland and Wales. The funding is collected through Ofgem’s enforcement and compliance activities, where companies that have breached energy rules agree to make a voluntary payment into the Energy Redress Scheme. Energy Saving Trust manages the allocation of payments for the scheme

Graham Ayling, senior project manager at Energy Saving Trust, said: “This funding will support the development of community-owned renewable energy at a crucial time, enabling such projects to play a larger role in the transition to a net zero energy system.

“These projects demonstrate how a future energy system can be fairer through greater citizen ownership, where residents see direct benefits. We’re pleased to be able to work towards this by recycling the profits from energy generation to help people struggling to heat and power their homes.”

Cathryn Scott, regulatory director of market oversight and enforcement at Ofgem, said: “As the energy regulator, we are committed to protecting consumers while helping pave the way towards net zero, and the Energy Redress fund is key to this. With another £2m from the fund going to community energy projects across England, Scotland, and Wales, it’s rewarding to see our compliance and enforcement efforts paying off.

“Community-led projects like those receiving funds ensure that local people benefit from the development of community renewable energy projects, which will ultimately help reduce bills and further our progress towards net zero.”

Read more about all the funded projects here.