Energy Resilience Fund

Fund aimed at supporting community and social enterprises to improve energy resilience and stabilise energy costs.

The challenge

High energy costs are a growing challenge for charities and social enterprises. For many small organisations, utilities have now surpassed staffing as the largest expense. A 2023 survey found that UK charities experienced an increase of 60% or more in their energy bills following Russia’s invasion of Ukraine. The financial strain is evident, with 78% of the organisations reporting a decline in their financial resilience due to rising costs. These challenges have been particularly difficult for energy-intensive enterprises, such as care homes, leisure centres and community centres.

Approach

In 2022, Key Fund developed the Energy Resilience Fund (ERF) pilot to explore how social investment could help organisations reduce energy costs through financing the installation of energy-efficient or environmentally friendly infrastructure. This second phase of the fund will be delivered by a partnership of social investors led by Social Investment Business, with investment from Better Society Capital, Social Investment Business Foundation and Access – The Foundation for Social Investment. It aims to help purpose-led enterprises bolster their energy resilience by accessing financial and technical support to install energy-saving measures or renewable energy generation technology. Enterprises can use the capital in various ways, such as replacing outdated vehicles and equipment with modern, energy-efficient alternatives, retrofitting buildings or installing renewable energy generation systems. These measures can result in reduced carbon emissions, lower energy costs and improved energy efficiency ratings to meet regulatory requirements.

The fund

ERF is a £15 million fund enabling charities and social enterprises to reduce energy usage, stabilise energy costs and contribute to long-term Net Zero goals. Delivered by a coalition of fund managers and community interest companies, this blended fund will make investments between £25,000 and £250,000 with 40% offered as grants to lower the costs of the loan. The fund will provide grants to conduct Energy Audits for organisations that do not have a suitable Independent Energy assessment upon application. Where necessary, the fund will also cover the costs of technical support and advice during the planning and installation phases.

• Fund size

  £15 million

• Better Society Capital commitment

  £6 million