VCSE Energy Grants: Funding for Community, Charity & Social Enterprise Energy Efficiency
In today’s energy landscape, even voluntary, community and social enterprises (VCSEs) are feeling the financial pressure. Rising utility bills, ageing buildings and the need for sustainable operations have made energy efficiency an urgent priority for organisations across the UK’s third sector.
That’s where the VCSE Energy Efficiency Scheme comes in.
Designed specifically to support non-profit and community-based organisations, this government-backed programme offers free energy audits and capital grants to help VCSEs improve their energy efficiency. Whether you run a charity, faith group, or community hub, this scheme is a golden opportunity to cut energy costs, reduce carbon emissions, and future-proof your facilities.
What Is the VCSE Energy Efficiency Scheme?
The VCSE Energy Efficiency Scheme is part of the UK Government’s wider commitment to supporting carbon reduction across all sectors—including not-for-profits. The programme focuses on helping eligible VCSE organisations make critical energy improvements to their premises.
At the heart of the scheme is a two-step process:
- First, eligible organisations can access a fully funded independent energy audit. This audit identifies practical, cost-effective ways to improve your energy use.
- Second, if the audit reveals a strong business case for upgrades, you may be invited to apply for grant funding to implement the recommended changes.
The scheme is currently administered by Energy Saving Trust on behalf of the Department for Energy Security and Net Zero, and has already started supporting organisations across England.
Why This Scheme Matters for VCSEs
Many VCSE organisations operate out of older or less efficient buildings, like community centres, church halls, support offices, and village halls where their heating, lighting and insulation may not meet modern energy standards. Unfortunately, upgrading these systems often falls to the bottom of the priority list due to funding limitations.
The VCSE energy grants directly address this issue by:
- Reducing operational costs through lower energy consumption
- Supporting environmental sustainability at a local level
- Allowing VCSEs to reallocate savings to frontline services
- Creating more comfortable and functional spaces for service users and staff
This is not just a financial opportunity, it’s a chance to amplify your social impact through greener operations.
What Kinds of Improvements Can Be Funded?
The types of upgrades funded through the scheme are practical, proven methods of energy reduction. Each project is based on the outcomes of the free energy audit, ensuring that funding is used effectively and with measurable impact.
Examples of eligible improvements include:
- Installing energy-efficient LED lighting
- Replacing or upgrading outdated boilers and heating systems
- Adding insulation to roofs, walls or floors
- Switching to low-carbon heating like air source heat pumps
- Improving windows or glazing
- Fitting smart heating controls or timers
Every site is different, and the energy audit ensures your recommended improvements are tailored and high-impact.
Who Is Eligible to Apply?
To access support from the VCSE Energy Efficiency Scheme, your organisation must meet several key eligibility requirements:
- Operate as a VCSE organisation in England (charities, community groups, non-profits, CICs, etc.)
- Deliver frontline services, especially in areas of higher need
- Use or manage a non-domestic building (like a community hall or office)
- Be responsible for paying the energy bills at your premises
Organisations must also be able to commit to using the audit recommendations to develop a grant proposal if invited.
Please note: places for audits are limited and competitive, so early application is strongly encouraged.
How to Apply for the Scheme
Applying to the VCSE Energy Efficiency Scheme is straightforward and involves two key stages:
First, submit an application to be considered for a free energy audit. You’ll need to provide details about your organisation, your premises, and your current energy usage. If selected, a professional energy auditor will visit your building and provide a detailed report with specific, costed energy-saving recommendations. Following that, if your report shows a strong case for investment, you may be invited to submit a full application for capital funding to implement those improvements.
While not every organisation will receive grant funding, the audit alone is an incredibly valuable resource, one that many VCSEs would normally have to pay for themselves.
Why Now Is the Time to Act
Funding for audits and grants is limited, and demand is expected to be high. If your organisation is struggling with heating costs, poor insulation, or inefficient equipment, this is the ideal time to get expert advice and potential funding support.
Taking action now also ensures you’ll be ahead of any future changes in government policy or energy pricing. Sustainable premises aren’t just a nice-to-have, they’re essential for long-term resilience in the third sector.
How Celtic Dynamics Can Help
At Celtic Dynamics, we’re committed to helping VCSE organisations access funding, reduce energy waste, and operate more sustainably. We can support you throughout the process, from understanding your eligibility to helping interpret your audit and plan practical next steps.
Whether you run a food bank, youth centre, mental health charity or local support organisation, Celtic Dynamics is here to help you build a warmer, greener and more cost-efficient future.
