London Community Energy Fund 2025–26 Prospectus

Rising energy bills are putting real pressure on some of our most valued community assets across the city – from schools and places of worship to community centres that so many Londoners rely on. Community energy is central to our mission to build a fairer, greener London. It puts power directly in the hands of Londoners, and is helping to cut costs, create jobs, and strengthen resilience in ways that uplift our communities. 

Community energy has a vital role to play in tackling both the climate emergency and the cost-of-living crisis. It’s about more than clean power – it’s about people coming together to take control of their energy, reduce costs, and build resilience in their neighbourhoods. It’s about creating skills, jobs, and opportunities, and ensuring that the transition to net zero is fair and benefits every community. 

Since we launched the London Community Energy Fund in 2017, it has supported nearly 200 projects across the capital – from installing solar panels on schools and community centres, to delivering low-carbon heating and insulation, to building the foundations of London’s growing community energy movement. These projects are already saving money and showcasing the power of communities leading change. 

This new phase of the Fund has been shaped by the voices of the sector. Following the launch of the Community Energy Taskforce and the priorities set out by community groups, we are doubling the funding available compared with the previous round. We are also strengthening the sector’s capacity by increasing core grant support – helping community energy groups not only to deliver projects, but also to grow and thrive. 

The Mayor and I are proud to support this next chapter of community energy in London – backing ambitious, community-led projects that will help tackle the climate emergency head on, while making our city a fairer, greener and more affordable place for every Londoner. 

– By Mete Coban MBE, Deputy Mayor of London for Environment and Energy  

The Mayor wants London to become a carbon net-zero city by 2030. For this to happen, London will need to be supplied by a range of efficient and clean-energy sources. 

Community energy groups play a key role in moving closer to this target. Therefore, the Mayor has committed to providing much-needed support in the form of his London Community Energy Fund (LCEF). This helps provide vital funding to get community energy projects up and running faster, particularly in communities that might otherwise struggle to fund such projects. 

Now entering an eighth phase, the LCEF supports the Mayor’s commitment to reduce carbon emissions for non-residential buildings in a way that is inclusive of all Londoners.  

Community energy projects raise awareness of broader benefits that community energy can bring - such as improving energy security; tackling fuel poverty, strengthening community resilience; and promoting local ownership of clean power. These projects also raise local awareness of energy and climate change issues. All these reasons are important to every Londoner - but especially our youngest generation, our future climate leaders. 

Schools play an important role in this journey. By installing renewable energy systems such as solar photovoltaics (PV), schools can cut their energy bills; reduce carbon emissions; and create opportunities for students to learn first-hand about sustainability. This not only makes schools more resilient; it also empowers children and young people to understand the challenges of the climate crisis, and to be part of the solutions.  

Community energy groups have become experts in putting in place decentralised sustainable energy systems, and enabling energy-saving projects in their communities. Examples include installing solar PV on GP surgeries and schools; and energy-efficient lighting upgrades in social housing blocks. This is often financed via local community members purchasing shares. Some groups have also focused on promoting energy efficiency and tackling fuel poverty - be it through a community benefit fund or delivering retrofit measures that will reduce energy demand.  

Up to £630,000 is available in grant funding through this phase of the LCEF to build on the achievements of community energy groups. This fund will support projects that: 

• reduce greenhouse gas emissions in London

• lead to collective action to reduce, manage and generate energy

• promote community-led development and delivery of energy projects that provide direct benefit to the local community

• increase community awareness and action on clean energy

• increase the resilience of communities vulnerable to the impacts of climate change and high energy costs.

Funding will be available to successful applicants after grant agreements with the Greater London Authority (GLA) are finalised. The GLA has listened to the community groups it has supported over the years. From this, it has decided to allocate up to 50 per cent as upfront payment upon signature of the grant agreement. The remainder will be released in tranches, when key milestones are met. The grant agreement will include clauses enabling the GLA to recover any payments made in advance, should your project not proceed. 

To apply, the application forms accompanying this prospectus can be requested from the GLA’s website at www.london.gov.uk/community-energy-fund. Applicants can apply for grant funding for more than one project. You must complete a form for each proposed project. Completed applications must be submitted as a PDF to the GLA via [email protected].  

To apply, you must demonstrate in your application how your project will: 

• reduce greenhouse gas emissions in London 

• lead to collective action to reduce, manage and generate energy 

• promote community-led development and delivery of energy projects that provide direct benefit to the local community 

• increase community awareness and action on clean energy 

• increase the resilience of communities that are vulnerable to the impacts of climate change and high energy costs 

Applicants to all streams should be confident that their project will be delivered. The funding aims to support a range of community energy projects that will: increase the generation of local clean energy across London; reduce greenhouse gas emissions and energy use; and help balance demand with supply. 

The number of community energy projects the LCEF will support depends on the number and quality of applications we receive, up to the maximum amount of funds available in this round. We will assess applications against the criteria as set out in the application forms.  

Further guidance for completing the application form can be found in section 3. 

Applications must:

• demonstrate eligibility for this funding
• provide evidence the amount of grant-funding required; and explain why LCEF support is specifically needed to ensure the project is delivered
• show how the project will meet the objectives of the fund.  

Application forms must be completed in full and returned as a PDF document to [email protected] along with accompanying documentation. 

A strong application will:

• show clear carbon savings and community benefits
• have a detailed breakdown of how funding will be spent
• take a comprehensive approach to risk management, to support successful delivery of the project.  

When you're ready to apply, download your application pack.

Each eligible application will be scored by an evaluation panel consisting of GLA staff and independent experts, according to the criteria set out in section 3. Successful applicants will be offered grants, subject to acceptance of the GLA’s funding terms and satisfactory completion of financial due diligence.

The GLA will be using a Grant Management System (GMS) to manage all future payments of the LCEF programme. All successful projects will be expected to register on the system to receive grant payments.

Grants offered through the LCEF will be subject to the funding terms set out below, accompanied by a Project Specification (Appendix 1), an example Mayor of London logo (Appendix 2), and a Project Claim Form (Appendix 3).

The Funding is granted by the GLA to meet the objectives set out in Appendix 1 to this letter (the “Objectives”) subject to the following terms and conditions: 

1. The Funding must be used exclusively for meeting the Objectives and for no other purpose and must be applied in accordance with the provisions of Appendix 1.  In the event that You wish to utilise the Funding in different proportions from those set out in Appendix 1 You must obtain prior written consent from the GLA.  

2. Subject to Your compliance with all of the provisions of this letter, the GLA shall, within 30 days of receipt of valid funding claims (to be made in accordance with the timetable set out at Appendix 1 (“Project Funding Timetable”) and accompanied by a written report detailing Your progress in relation to meeting the Objectives set out in Appendix 3 (“Progress Update and Claim Form”) and any other information the GLA may require), pay You sums in respect of such claims provided that they shall not exceed [              ] pounds sterling (£[           ]) in aggregate.  Where, at any point in the opinion of the GLA, satisfactory progress has not been made by You in meeting Your obligations or You are in breach of Your obligations as set out in this letter and appendices to it, the GLA shall be entitled to reduce, suspend, withhold and/or require re-payment of the Funding. The provision of the Funding amounts to a conditional gift and is therefore not subject to VAT.  If, at any time, however, it is held to be subject to VAT, then You agree and acknowledge that the Funding shall have included any and all applicable VAT. 

3. You must ensure that the requirements set out in this letter, and in any clarification or guidance issued from time to time by the GLA, are complied with. In particular You shall: 

a) agree in writing in advance with the Authority any changes to any of the Objectives; 

b) establish, implement and utilise effective monitoring and financial systems, so that as a minimum the costs funded by the Funding can be clearly identified and the propriety and regularity of all payments and handling of the Funding are ensured; 

c) notify the GLA of the monitoring and financial systems in place, and comply with the GLA’s reasonable requirements for these systems; 

d) notify the GLA immediately if any financial irregularity in the use of the Funding is suspected, and indicate the steps being taken in response.  Irregularity includes (but is not limited to) any fraud, impropriety, mismanagement or use of the Funding for anything other than approved in this letter and appendices to it; 

e) notify the GLA immediately if any other financial irregularity is suspected, and indicate the steps being taken in response; 

f) notify the GLA immediately if You are Insolvent (as defined at Clause 18 below), or have no reasonable prospect of avoiding Insolvency in the future; 

g) keep a record of all expenditure incurred in meeting the Objectives together with full supporting evidence and Additional Funding (as defined at Clause 13 below) received, and You shall deliver to the GLA a report setting out a detailed analysis of how the Funding has been spent, with such report to be approved by the Authority within 30 days of its receipt.  All evidence of expenditure incurred such as original invoices, receipts, timesheets and other relevant documents must be kept for at least 6 years after the date of this letter;  

h) make all relevant documents available and provide access at any time for: 

i) inspection visits and scrutiny of files by GLA or anyone nominated by the GLA and 

ii) an external audit and review of the Objectives and of financial appraisal and monitoring systems.  

4. You must ensure that publicity is given to the fact that the GLA is financially supporting You in the Project and the Objectives.  In acknowledging the contribution made by the GLA, You must acknowledge the support of the GLA in any materials that refer to the Project or Project related activity, including (without limitation) in any written or spoken public materials or presentations about the Project or Project related activity. You must comply with any guidance on publicity given by the GLA from time to time and all publicity referring to the GLA, the Mayor of London and/or any third party partner or sponsor of the GLA shall be subject to the prior approval of the GLA.  

5. You must ensure that the GLA’s logos (as set out in Appendix 2) are used in any marketing activities undertaken in respect of the Project, including all fliers and posters.  You should also incorporate the GLA’s logos into the credits of each film that is produced as part of the Project. You must also ensure that You use such other logos specified by the GLA in marketing the Project and incorporate the same into the credits of each film that is produced as part of the Project. 

6. In acknowledging the GLA’s grant of the Funding, You must comply with any guidance on publicity provided by the GLA in respect of the use of the GLA logos and/or any logos of any third party partner or sponsor of the GLA and ensure that any use of the GLA logo or any third party partner or sponsor of the GLA is approved by the GLA in writing in advance of its use. 

7. You must not do anything that may (in the opinion of the GLA) place the GLA, its third party partners and/or sponsors in disrepute or harm the GLA’s reputation and/or that of third party partner or sponsor of the GLA. 

8. You will be liable for and indemnify and keep indemnified the GLA against any loss or damage incurred and any injury (including death), suffered and all actions, costs, demands, proceedings, damages, charges and expenses whatsoever arising in connection with the management (including financial management) and carrying out of the Project and the Objectives to the extent that such actions, costs, demands, proceedings, damages, charges and expenses are due to Your negligence or default in carrying out the obligations as set out in this letter and appendices to it. 

9. The GLA may at its sole discretion terminate this Agreement at any time whether for breach or convenience by giving two weeks’ written notice and in the event of such termination the GLA shall not be obligated to make any further payments of the Funding. 

10. You must ensure that You maintain in force policies of insurance with an insurance company of long-standing and good repute in respect of public liability and such other insurance as may be required in order to comply with Your obligations set out in this letter and appendices to it. 

11. You must ensure that Your organisation and anyone acting on Your behalf: 

a) complies with all laws for the time being in force in England and Wales; and  

b) without prejudice and in addition to Clause 11a:  

i) comply with all relevant enactments in force from time to time relating to discrimination in employment and the promotion of equal opportunities; 

ii) acknowledge that the GLA is under a duty under section 149 of the Equality Act 2010 to demonstrate it has paid due regard to the need to: 

1)  eliminate unlawful discrimination and harassment;  

2)  advance equality of opportunity between groups who share protected characteristics (including include: age, race, gender, disability, religion or belief, sexual orientation, gender reassignment) and those that do not, in particular, minimise disadvantage suffered by such groups; taking steps to meet the needs of such groups that are different from the needs of others; encouraging such groups to participate in activity in which their participation is disproportionately low; and 

3)  foster good relations between people who share a protected characteristic and those that do not,    

and in undertaking any activity concerning the Project, assist and cooperate with the GLA where possible in satisfying this duty; 

c) assist and co-operate with the GLA where possible in respect of the GLA’s compliance with its duties under Clause 11b(ii);  

d) (before the commencement of the Project): 

i) undertake Disclosure and Barring Service checks in respect of all persons engaged in or about the Project (by You, any agent, sub-recipient of GLA Funding, contractor or sub-contractor) where such persons shall be working with children or vulnerable persons or have access to personal data (as defined by the Data Protection Act 1998 and from 25 May 2018, the Regulation (EU) 2016/679 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data) concerning such children and vulnerable persons in relation as part of the Project; and 

ii) have in place (and maintain throughout the continuance of the Project) appropriate child and vulnerable persons safeguarding policies, which must, for the avoidance of doubt meet any requirements of the GLA’s related policies in this place from time to time, including (without limitation) the GLA’s Child Policy and Protection Procedures; and 

e) shall ensure that Your employees, contractors, servants, agents and/or sub-contractors undertake the Project and comply with Your obligations under this letter of agreement in manner which enables the GLA to comply fully with its duties under Part 5 of the Counter-Terrorism and Security Act 2015 and which sets out a duty for specified authorities (and their grant recipients) to have due regard to the need to prevent people from being drawn into terrorism. 

12. For the avoidance of doubt both the GLA and You acknowledge and agree that Your Project costs exceed the Funding and that the GLA shall not provide any additional funding and shall not be liable for any sums in excess of the Funding provided under this letter of agreement.  

13. You shall use Your best endeavours to secure satisfactory funding from other sources to meet Your Project costs (“Additional Funding”) and keep a record of Your activities to raise such additional funding.  Records of all additional funding You secure, expenditure You incur, and purposes to which additional funding is put shall, if requested, be provided to the GLA.  

14. The GLA may at its absolute discretion reduce, suspend or withhold the GLA Funding, or require all or part of the GLA Funding to be repaid if:

a) You fail to deliver the Project or meet the Objectives and/or the delivery of the Project is reasonably adjudged by the GLA to be unsatisfactory; 

b) there is a substantial change to the Project or the Objectives which the GLA has not approved, or any attempt is made to transfer or assign any rights, interests or obligations created under this letter of agreement or substitute any person in respect of any such rights, interests or obligations, without the prior consent in writing of the GLA;

c) any information provided in the application for funding or in a claim for payment or in subsequent or supporting correspondence is found to be incorrect or incomplete to an extent which the GLA reasonably considers to be material;

d) You fail to comply with any of the terms and conditions set out in this letter of agreement;

e) Your composition, ownership or control changes, or You become Insolvent or are dissolved in any way;

f) any other circumstances significantly affect Your ability to deliver the Project and/or meet the Objectives or result in or are in the reasonable opinion of the GLA likely to lead to the Project and/or the meeting of the Objectives as approved not being completed;

g) any of the events referred to in Clauses 3d, e or f occur;

h) insufficient measures are taken by You to investigate and resolve any financial irregularity or the GLA reasonably concludes the Funding is at risk of being misapplied; and/or

i) there are any other reasons why in the reasonable opinion of the GLA the Project is being carried out in such a way as to conflict with the objectives of the GLA or bring the GLA into disrepute.

15. You shall notify the GLA immediately and provide the GLA with a full written explanation, if any of the circumstances in Clause 14 above arise. 

16. If the GLA becomes entitled to exercise its rights under Clause 14 it may nevertheless decide not to exercise those rights, or not to exercise them to the fullest extent possible, or to delay in exercising those rights.  Any decision not to exercise the GLA’s rights under Clause 14, or to exercise them only partially or to delay in exercising them, may be made on conditions which will be notified to You provided always that any such decision by the GLA shall not prevent the subsequent enforcement of any subsequent breach of that provision, and shall not be deemed to be a waiver of any subsequent breach of that or any other provisions.

17.  Notwithstanding the execution of this letter as a simple agreement, the parties hereby agree that the limitation period for legal claims hereunder shall expire following a period of twelve (12) years from the date upon which the breach to which such claim relates becomes apparent 

18.  “Insolvent” means: 

a) where You are an individual (or if more than one individual, then any one of them): 

i) are the subject of a bankruptcy petition;  

ii) are the subject of an application for an interim order under Part VIII of the Insolvency Act 1986 as amended by the Insolvency Act 2000 and the Enterprise Act 2002; 

iii) enter into any composition, moratorium or other arrangement with Your creditors, whether or not in connection with any proceeding under the Insolvency Act 1986 as amended by the Insolvency Act 2000 and the Enterprise Act 2002; and 

b) where You are a body corporate (or if more than one body corporate than any one of them):

i) a proposal for a voluntary arrangement is made under Part 1 of the Insolvency Act 1986 as amended by the Insolvency Act 2000 and the Enterprise Act 2002 or Your directors resolve to make such a proposal;

ii) a petition for an administration order is presented under Part II of the Insolvency Act 1986 as amended by the Insolvency Act 2000 and the Enterprise Act 2002 or Your directors resolve to present such a petition; 

iii) a receiver (including a receiver under section 101 of the Law of Property Act 1925 or manager or administrative receiver of Your property (or part of it) is appointed;

iv) a resolution for Your voluntary winding up is passed under Part 1V of the Insolvency Act 1986 as amended by the Insolvency Act 2000 and the Enterprise Act 2002 or a meeting of Your creditors is called for the purpose of considering that You be wound up voluntarily (in either case, other than a voluntary winding up whilst solvent for the purposes of and followed by a solvent reconstruction or amalgamation);

v) a petition for Your winding up is presented to the court under Part IV or by virtue of Part V of the Insolvency Act 1986 as amended by the Insolvency Act 2000 and the Enterprise Act 2002 or a resolution is passed that You be wound up; 

vi) an application is made under section 895 of the Companies Act 2006 or a proposal is made which could result in such an application;

vii) entry into or a proposal to enter into any arrangement, moratorium or composition (other than any referred to above) with Your creditors; or 

viii) Your dissolution or removal from the Register of Companies or Your ceasing to exist (whether or not capable of reinstatement or reconstruction). 

19. For the purposes of Clause 20:

a) “Agreement Information” means (i) this letter of Agreement in its entirety (including from time to time agreed changes to the letter of Agreement) and (ii) data extracted from the claims made under this letter of Agreement which shall consist of Your name, the expenditure account code, the expenditure account code description, the document number, the clearing date and the claim amount; and

b) “Transparency Commitment” means the GLA’s commitment to publishing its agreements, contracts, tender documents and data from invoices and claims received in accordance with the Local Government Transparency Code 2015 and the GLA’s Contracts and Funding Code. 

20. You acknowledge and agree that the GLA: 

a) is subject to the Transparency Commitment and accordingly, and hereby give Your consent for the GLA to publish the Agreement Information to the general public; and 

b) may in its absolute discretion redact all or part of the Agreement Information prior to its publication. In so doing and in its absolute discretion the GLA may take account of the exemptions/exceptions that would be available in relation to information requested under the Freedom of Information Act 2000. The GLA may in its absolute discretion consult with You regarding any redactions to the Agreement Information to be published pursuant to this Clause 20. The GLA shall make the final decision regarding publication and/or redaction of the Agreement Information. 

For a large print, Braille, disc, sign language video or audio-tape version of this document, please contact us at the address below: 

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Greater London Authority

September 2025

Published by: Greater London Authority

City Hall

Kamal Chunchie Way

London E16 1ZE

www.london.gov.uk

Enquiries 020 7983 4100