Investing in community energy

£9 million for community energy generation and energy efficiency improvements

Communities across the country will benefit from £9 million Scottish Government funding for measures to help cut energy costs and support the development of locally-owned renewable energy projects.

The funding – which builds on the successful Community Energy Generation Growth Fund pilot – will be used to scale up community energy projects across Scotland as part of a drive to cut carbon emissions, create local jobs, reduce energy costs and stimulate local investment.

It includes:

• £3.5 million for a new Community Energy Generation Growth Fund to support communities to develop their own renewable energy projects – such as installing wind turbines and solar panels
• £4.5 million to help local groups decarbonise their buildings through the installation of renewable measures such as heat pumps and solar PV panels, alongside energy efficiency measures, that reduce energy costs and emissions
• £1 million for capacity building and development support to help develop and progress early ideas for new community energy projects

Announcing the funding at the annual Community and Renewable Energy Scheme (CARES) conference in Glasgow, Acting Climate Action Minister Alasdair Allan said: “Communities must be at the heart of our transition to net zero and must see the benefits of this just transition.

“This transition is about both the outcome – a fairer, greener future – and the way we get there in partnership with those most likely to be impacted by these changes.

“That is why I am pleased to announce this £9 million investment from the Scottish Government will be available to communities through CARES over the next year.  

“Scotland has diverse communities – from those in our cities, to those in rural areas and on our islands. I am committed to supporting all these communities to take part in and benefit from the growth of Scotland’s energy sector.” 

Chief Executive Officer of Community Energy Scotland Zoë Holliday said: “The Scottish Government’s continued commitment to community energy is welcome news for groups across Scotland.

“The reintroduction of funding for stand-alone generation projects has the potential to lever in significant funds locally and play a key role in the just transition.

“We are also delighted to see a new fund focussing on capacity building for communities; we have been calling for such support to ensure that when it comes to the energy transition, no community is left behind.”

More information about Community Energy Generation Growth Fund.