Energy Resilience Fund

Fund aimed at supporting community and social enterprises to reduce energy usage, stabilise energy costs and contribute to long-term Net Zero goals.

The challenge

Rising energy costs are a growing challenge for charities and social enterprises. In 2022, four out of ten charities experienced a rise in energy costs, with two out of ten reporting that energy bills increased by 50% or more. Many charities were already left vulnerable to financial shocks due to the effects of Covid-19, with over 50% dipping into reserves to meet operating costs. These challenges have been particularly difficult for energy-intensive organisations, such as care homes, leisure centres and community centres.

Approach

In 2022 Key Fund designated existing funds to operate at speed to meet emerging needs of social enterprises, during the cost-of-living crisis. Following sustained demand from charities and social enterprises, Key Fund developed the Energy Resilience Fund with investment from Big Society Capital, Access and Power to Change. The fund aims to support 100 organisations to access financial and technical support to install energy saving measures or renewable energy generation technology. This fund will serve as a pilot aiming to roll out a larger c. £50 million fund for the sector to support energy resilience.

The fund

Delivered by a coalition of fund managers, the Energy Resilience Fund is a £5 million fund aimed at supporting charities and social enterprises to reduce energy usage, stabilise energy costs and contribute to long-term Net Zero goals. The fund will make investments between £10,000 and £150,000, with up to 40% of capital delivered as grants to ensure the cost of investment is at least offset by savings on energy bills. Organisations will also have access to development grants of up to £5,000 to contribute to the costs of support work to explore potential energy-saving options. Where necessary, these grants will cover the costs of technical support and advice during the planning and installation phases.

• Fund size

  £5 million

• Big Society Capital commitment

  £3 million