Across the UK, charities and social enterprises are grappling with rising energy bills. For some youth services, Social Investment Business (SIB) research shows energy costs are swallowing up to half of their budgets, diverting money from core activities. Meanwhile, more than half of all community buildings in England fall below an energy performance certificate (EPC) rating C, the government’s minimum efficiency standard. In rural and coastal areas, the gap is even wider. Many of these buildings are ageing, draughty and increasingly expensive to heat, while current EPC guidance still recommends new gas boilers, locking organisations into fossil fuel use at a time when rapid decarbonisation is needed.
Rising bills and inefficient buildings are an unwelcome distraction from the vital community services the sector is delivering. Yet overcoming this challenge isn’t easy. It can be time-consuming, often outside our expertise, and for many organisations renting with short leases, access to funding can be more difficult. High upfront costs for insulation, heating upgrades, or solar panels are prohibitive, especially as the UK faces some of the highest electricity prices in Europe. These factors create a significant barrier to adopting energy-saving measures, even where the environmental and financial benefits are clear.
SIB research highlights the potential for the sector to play a leading role in the energy transition. Community organisations are deeply rooted in their localities and provide essential services, yet they are disproportionately affected by high energy burdens. Supporting them to invest in energy efficiency can deliver social, financial and environmental returns.
The findings identify a five-year window of opportunity for the community sector to play a leading role in the transition to net zero. With the right investment, the sector can close the energy efficiency gap and create stronger, sustainable spaces that are equipped to serve people for years to come.
One way we’re responding to these constraints is through our Energy Resilience Fund (ERF), designed to support community organisations with the upfront capital and flexible finance required to make necessary changes to improve resilience. The fund combines loan and grant finance with free energy audits and tailored advice from partners including the Centre for Sustainable Energy (CSE).
Organisations taking advantage of this funding are already forecasting savings well in advance of £5,000 a year, while reducing carbon emissions and futureproofing their buildings.
Funding has been awarded for solar panel installation, LED lighting, heat pumps, and even low-emission vehicles, including an electric tractor and robotic lawn mower. Other organisations have implemented multi-technology upgrades: combining solar, energy storage and LED lighting, cutting their carbon emissions and safeguarding their services.
Scaling energy efficiency across the community sector requires more than finance. SIB research highlights the structural barriers – from outdated EPC audits to volatile electricity prices – that are slowing progress and leaving community buildings trailing other non-domestic properties. That’s why we’ve expanded the ERF with new partnerships, such as with the CSE, to make the huge benefits of clean and cheaper power easier for organisations to understand and access.
Meeting these challenges with tailored support, innovative funding, and policy reform is essential if community organisations are to maintain their services and reduce emissions. The co-benefits of improving energy efficiency are substantial. Prioritising energy efficiency is not only about compliance. It’s also an opportunity to increase building capacity, improve sustainability, and secure resilient spaces that serve local communities year-round. Investment in the right places can help ensure that buildings are better equipped to meet demand, creating spaces that are more efficient and adaptable for the future.
While we push for greater government support and policy changes, we’ll continue working directly with the community sector to seize opportunities and ensure it is not left behind.
What is the Energy Resilience Fund (ERF)?
The £15m ERF provides a blended funding package of loan (60%) and grant (40%) to bolster the energy resilience of eligible charities and social enterprises in England. The fund is delivered by a partnership made up of Social Investment Business, Big Issue Invest, Charity Bank, Co-operative and Community Finance, Groundwork UK, Key Fund, Resonance Ltd, the Architectural Heritage Fund, and the Ubele Initiative. The fund is the successor to the pilot Energy Resilience Fund managed by Key Fund, also delivered in partnership with many of the above organisations.
Who is it for?
Charities and social enterprises based in and delivering impact in England, which are looking to improve their energy resilience. This could be for many different reasons, for example reduced carbon emissions, energy cost savings, upgrading energy efficiency ratings to meet future regulations, increased use or comfort of buildings, replacing older vehicles and equipment with modern energy efficient versions.
Futureproofing the UK’s community sector
Progress on EPC ratings needs acceleration
An energy performance certificate (EPC) rates a building’s energy efficiency from A (most efficient) to G (least efficient), identifying key improvements to cut emissions and energy costs. Right now, community buildings are off track to meet upcoming standards. If progress continues at its current pace, 30% will still fail to reach EPC C by 2030. The research also highlights regional disparities in the condition of community buildings. While 34% of community buildings in London sit below EPC C, this figure rises to 49% in other parts of England, indicating the need for targeted investment and support.
The need for investment and support
SIB research highlights what is needed: targeted investment of £429m – or an average of £31,000 per building – to bring community buildings up to standard. This figure represents making several simple upgrades, such as installing LED lighting, heating controls or secondary glazing. These cost-effective measures can quickly help buildings meet new regulatory standards. Installing recommended measures across all community buildings would cut emissions by 144,000 tonnes of CO2 annually, equivalent to taking 73,000 cars off the road each year making a measurable contribution to the UK’s net-zero targets.
Jack Wakefield is head of policy and comms at Social Investment Business
Charity Finance wishes to thank Social Investment Business for its support with this article
