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29/07/2026

£10m Boost For Scottish Community Energy Projects

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Community groups across Scotland are set to benefit from a £10 million investment over the next five years to help reduce energy costs and cut carbon emissions through the Scottish Government's Community and Renewable Energy Scheme (CARES).

The funding, provided by The National Lottery Community Fund, will support the installation of renewable technologies such as heat pumps and solar panels, alongside energy efficiency improvements through the CARES Community Buildings Fund.

CARES provides advice and funding to communities developing renewable energy, heat decarbonisation and energy efficiency projects. The scheme is administered by Local Energy Scotland on behalf of the Scottish Government.

The investment was announced by Energy Minister Stephen Gethins during a visit to Shetland, where he saw how CARES funding had enabled the Scalloway Youth and Community Project to install a heat pump, solar panels and a battery storage system.

The Minister said: "Scotland's communities are at the heart of our transition to more affordable energy, and this £10 million investment over five years from The National Lottery Community Fund will help even more of them benefit from it.

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"By supporting the installation of renewable technologies and energy efficiency measures, we can cut costs for organisations serving some of our most vulnerable people, reduce emissions from community buildings, and strengthen local supply chains.

"CARES has already delivered over £83 million to communities across Scotland, supporting more than 1,200 projects and 75MW of renewable energy capacity. This new funding will enable more communities to build on that progress in the places that matter to them, and I would encourage any organisations who have not already applied to speak with Local Energy Scotland to see what help they may be eligible for."

Kate Still, Chair of The National Lottery Community Fund Scotland, said: "We're delighted to have established this partnership with the Scottish Government and Local Energy Scotland. Supporting communities to be environmentally sustainable is one of our key missions at The National Lottery Community Fund. That’s why we are investing £10 million in the CARES Community Buildings Fund. It significantly increases CARES funding while keeping access to support and funding straightforward for community groups.

"Community buildings are often at the heart of local communities across Scotland, bringing people together to connect and support one another. Thanks to National Lottery players, this funding will help organisations invest in renewable and carbon-saving technologies, making these valued local spaces greener, more sustainable and more resilient. We know communities want to play a leading role in responding to climate change, and this investment will enable organisations of all sizes to take meaningful action while creating lasting benefits for both people and the environment."

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