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31/07/2026

£10m National Lottery Backing For Community Energy In Scotland

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Community groups across Scotland are set to receive additional support to cut energy bills and reduce carbon emissions following a £10 million commitment over five years from The National Lottery Community Fund, the UK's largest community funder.

The money will be channelled through the Scottish Government's Community and Renewable Energy Scheme (CARES) Community Buildings Fund to help install renewable technologies such as heat pumps and solar panels, alongside energy efficiency upgrades.

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

Announcing the investment during a visit to Shetland, Energy Minister Stephen Gethins saw firsthand how CARES support enabled the Scalloway Youth and Community Project to install a heat pump, solar panels and a battery.

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."

Laura McGadie, Operations Director at the Energy Saving Trust, said: "We're incredibly proud of everything CARES has achieved so far in supporting communities across Scotland. This funding from The National Lottery Community Fund will help us build on that success, enabling us to reach even more communities and support them on their journey towards a more sustainable future."

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