Deadline: 08-Sep-2025
Communities across Scotland are invited to access a significant fund designed to help them develop and grow local renewable energy projects.
The Community Energy Generation Growth Fund, part of the Scottish Government’s CARES initiative, supports community groups hoping to install wind turbines, solar panels, hydropower systems, and other renewable energy infrastructure to meet local needs and generate income from excess energy produced.
This fund represents a new wave of support, building on a pilot scheme that has already assisted hundreds of projects. With fresh capital available for feasibility, development, or construction stages, communities with well-defined renewable energy ventures have a strong opportunity to move forward. The initiative also offers assistance beyond financial support through guidance, case studies, and consultations to help applicants refine their projects and take informed next steps.
Support is structured to meet the needs of projects at different stages of development. At the feasibility stage, groups can access grant funding covering up to 100 percent of eligible costs, with awards of up to £20,000 to support studies, option appraisals, and preliminary development work. Projects ready to progress into the development stage may apply for grants up to £250,000 within a financial year, covering essential activities such as grid connections, planning, securing sites, technical design, and procurement. For construction, funding is available to cover the greater of 80 percent of costs up to £250,000 or 25 percent of costs with no upper cap. Short-term bridging loans, starting at £60,000, are also available to help applicants while they secure match funding. The grant calculation is based on total construction costs, ensuring that even phased projects remain supported. Feasibility and development support may also come through CARES framework contractors, ensuring access to technical expertise.
Eligible applicants include Scottish registered and incorporated non-profit distributing organisations. Funding is specifically aimed at community groups interested in developing, owning, and operating renewable electricity generation projects. Established and constituted community groups, such as Development Trusts and Community Energy or Climate Action Groups, are encouraged to apply. Charities, including Arms Length External Organisations, are also eligible. Applicants should present a clear project plan detailing the renewable technologies to be installed and the proposed sites for installation.
The goal of this investment is twofold: to empower communities to produce clean energy and to enable them to benefit directly—by reducing energy costs and reinvesting profits into local services and initiatives. From generating solar power for schools to building wind turbines that support local resilience, the fund encourages projects rooted in place-based innovation and sustainability.
Running until March 2025, the pilot fund will inform ongoing CARES support for community-owned energy generation. It reflects a broader commitment to net-zero transitions, placing communities at the core of Scotland’s renewable energy transformation and helping build a greener, more equitable energy future.
For more information, visit Local Energy Scotland.