Community energy funding in Scotland pays through a blended national fund
The Scottish Government announced over 5.5 million pounds in community energy funding for Scotland on 1 October 2025, paid to 46 community groups and charities in a single round. The money came from the Community Energy Generation Growth Fund, a grant fund that pays for wind turbines, solar panels and hydro schemes owned by local communities rather than private companies. The fund sits inside the wider Community and Renewable Energy Scheme, called CARES, which Local Energy Scotland runs on the Scottish Government behalf.
The fund holds 8 million pounds in total, and over 4 million pounds of that came from Great British Energy, the new United Kingdom state owned energy company set up to invest public money in clean power. Blending money from 2 governments in a single fund is the mechanism behind this round. Since the fund launched in 2024, it has made 69 funding offers supporting 57 different community energy projects across Scotland, a cumulative total the Scottish Government own release states directly, which shows this round is 1 payment inside a program still growing rather than a single gift.
Where the money went
Four named awards from this round account for over 1.1 million pounds of the total. The Edinburgh Community Solar Cooperative received 484,500 pounds for phase 3 of a solar rollout across schools and community buildings in the city, the largest single award in the round. Huntly Development Trust received 246,050 pounds toward the Gartly Moor project, which is working toward up to 20 megawatts of wind, solar and green hydrogen capacity, a megawatt being a unit that measures how much electricity a power source can generate at once. Arran Community Renewables received 239,000 pounds for the Glenkiln solar farm, and Eigg Electric received 185,662 pounds for phase 2 of the island community work toward decarbonising by 2030.
Show the numbers
| Edinburgh Community Solar Cooperative | 484,500 |
| Huntly Development Trust | 246,050 |
| Arran Community Renewables | 239,000 |
| Eigg Electric | 185,662 |
How the wider fund pays out
The wider fund only accepts a project that will install over 100 kilowatts of renewable generating capacity, a kilowatt being a much smaller unit than a megawatt, about 1,000 times smaller. Local Energy Scotland own guidance for the fund describes 3 payment phases, separate from how any 1 of the 4 named awards above was actually split. A feasibility grant of up to 20,000 pounds covers up to 100% of the cost of checking whether a project can work. A development grant of up to 200,000 pounds a year, also covered up to 100%, pays for detailed planning. A construction grant of up to 150,000 pounds covers up to 80% of the cost of actually building it, with loans available on top repayable over up to 5 years. Onshore wind, solar panels and hydro schemes all qualify.
These maximum amounts describe how the wider fund works in general, from the fund own guidance page. They are not a claim about how any 1 of the 4 named awards above was actually split between grant and loan, since no source states that breakdown for this round.
Show the numbers
| Feasibility grant | 20,000 |
| Development grant, a year | 200,000 |
| Construction grant | 150,000 |
Communities share in the benefit
Gillian Martin, the Scottish Government Cabinet Secretary for Climate Action and Energy, announced the awards.
Scotland is fast becoming a global renewable energy powerhouse, and it is vital that communities share in the benefits from this transition.
Gillian Martin, Cabinet Secretary for Climate Action and Energy, Scottish Government. Source 1.
Chris Morris, the Local Energy Scotland manager, the body that delivers CARES funding to groups like these, welcomed the applicants.
Congratulations to the community groups and charities who have worked hard to develop these inspiring projects and proposals.
Chris Morris, manager, Local Energy Scotland. Source 1.