CARES Funding for Community Energy Groups Announced for 2025-26
On 29 January, the Scottish Government announced the CARES funding that will be available to community energy groups in 2025-26.
The funding breakdown is:
- £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.
Zoë Holliday, CEO at Community Energy Scotland, 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 focusing 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.”
We know from our members that lack of capacity is one of the biggest barriers to community energy. Through the Scottish Community Coalition on Energy, Community Energy Scotland has been calling for increased funding for community groups to build up their capacity, even before they start developing a community energy project. The new £1m that is dedicated to capacity building and development will unlock new projects and help bring the benefits of warmer buildings, cleaner energy and an independent income stream to more communities across Scotland.
In addition, the larger funding pot for community-owned solar, wind and hydro through the Community Energy Generation Growth Fund will help contribute towards our coalition’s aim of 1GW of community-owned energy in Scotland by 2030.
