CARES Community Buildings Fund

The Community Buildings Fund is open for applications.

The Community Building Fund, part of the Scottish Government’s Community and Renewable Energy Scheme (CARES), provides grants to help community organisations reduce their building’s energy costs and greenhouse gas emissions. It does this by funding the installation of renewable technologies like heat pumps, battery storage, and solar photovoltaic (PV) panels, as well as some energy efficiency measures.

Is this funding right for you?

• It’s open to non-profit distributing Scottish charities or companies. Check your eligibility now.
• You’ll need to have a good idea of the renewable technologies you’d like to install in your community building. If you need advice, check our guidance below.
• You will need to install eligible measures like air source heat pumps, solar PV panels, and energy-saving improvements.
• If your building has heating which runs on fossil fuels (gas, oil) you will need to replace it with a suitable energy efficient alternative.
• The building you improve must be one you own or have a long term lease (at least 5 years), that is used often and therefore has high energy costs. See the frequently asked questions for more information on what this means.
• You must match 20% of the CARES project’s cost. See our guidance for more information about match funding, including potential sources.

Interested but still not sure?

We support applicants who have not delivered installation projects before. To get inspired, you can review case studies of community building projects. If you’re not sure what to do or if you have questions about your organisations eligibility, our Community Energy Launchpad is where you should start.

About the Community Building Fund

Grants up to £80,000 for 80% of eligible costs are available to eligible community groups to help you reduce energy costs and make your building more sustainable.  The funding can be used towards the cost of installing renewable energy and energy efficiency measures.  It can also be used for costs like building warrants, planning permission and grid connection applications which are essential to install some measures. The Local Energy Scotland team will review applications and try and help you take forward your project.

In most buildings heating and hot water use the most energy and therefore cause the most environmental harm. The fund is targeted at those that have electric heating or are installing heat pumps. Funding for energy efficiency measures, solar PV and batteries is also available to help reduce your energy bills.

What improvements will CARES fund?

1. Heating requirement

CARES funding is prioritised to buildings that have or will decarbonise their heating.  Your building must have:

• A heat pump (air source, ground source or water source).
• A connection to a heat network.
• Direct electric heating (including storage heating or electric boilers)
• biomass heating.

Or as part of your CARES project you will be installing:

• A heat pump; or
• A connection to a heat network.

2.  Core measures eligible for CARES funding.

You must install at least one core CARES measures:

• A heat pump (air source, ground source or water source).
• A connection to heat network.
• Solar photovoltaic (PV) panels.
• Solar water heating.

3. Add-on measures

In addition to installing a core measure(s), you can also apply for funding to install one or more of the following:

• Energy storage – heat/thermal or electrical.
• Insulation – any loft, underfloor or cavity wall insulation.
• Secondary glazing.
• Draught proofing.
• Appropriate energy saving controls that are linked to new installations to ensure they operate efficiently.

In all cases, you must meet the heating requirement and install at least one core measure. The total cost of add-on measures must be less than the core measures. We’ve provided examples of measure combinations in our frequently asked questions.

You will have to explain your current heating system and provide annual energy use figures and evidence eg annual bills. This information helps us understand the needs of your building and the potential impact funding can have.

Any suggested battery capacity bigger than the proposed PV system where you haven’t received an independent recommendation will require technical checks and can cause delays in your application assessment.

Important note on choosing the right measures

Good design and choosing the right measures for your building and its use are crucial for success. Do your research and talk to the team at Local Energy Scotland. We can also refer you for further support and have resources available that we can direct you to.

If you have already designed your project, you can progress without seeking independent advice. We expect you to provide information on how you have determined your system is the right one for your needs. If you are unclear on this, we recommend getting independent advice before seeking quotes.  See the resources below for ideas.

How to apply for funding?

There is further information below and on our general funding guidance page. Please note that for the Community Buildings Fund you will need to evidence your technology choices, seek quotes and submit your preferred quote along with your application. Applications for CARES are submitted online via our CARES Application Portal. You can progress your application in stages and start with an expression of interest now.

Evidence you will need to provide as part of your application includes:

• Proof of eligibility.
• Energy use (eg bills).
• Any independent advice you have received (not compulsory).
• Quotes from installer(s) to show the design and cost of the system and showing an indicative installation date.

When you hit submit, your application and evidence will be reviewed. Any missing or unclear information will be queried. When all queries are resolved your finalised application will be in the queue for potential approval

There is further information below and on our general funding guidance page.

Timescales

Applications are open and we would encourage you to apply as soon as possible. We will process, assess and queue applications.  However, because of the Scottish Election in May we are unable to issue grant offers or confirm overall scheme funding until a new Government is in place and approves the awarding of new funds.

The Community Buildings Fund will close to applications at the end of October 2026, or when funding is fully allocated, whichever is sooner. Funds will be allocated on a first-come, first-served basis on receipt of fully submitted applications, where any queries have been resolved, and with all supporting information including your selected quotation and evidence of building use and ownership/lease. The submission time and date is when all of these are met and your application is placed in the queue at this point. If your application is reviewed and there is key information missing your new date and time will be when these are submitted/addressed.

Please note your funding isn’t allocated to you until you have received, signed and returned a grant offer letter.

Approved projects must be completed and all funding claimed by the 15 March 2027.

As planned project timelines can change, we encourage you to start your project and claim the funding as early as possible to allow for any unexpected delays.

Funding isn’t guaranteed and depends on available budget. Your application may be put in a queue or rejected if insufficient budget is available.

The following provides further details to help you apply to the Community Buildings Fund

Eligibility

Applying with independent advice

Applying without seeking independent advice

Measures not eligible for funding?

Choosing an installer

Resources to help you deliver your project

Check your organisation is eligible for CARES

Please also review the organisation fund eligibility check to see if your organisation is eligible for CARES funding.

What types of buildings can receive funding?

Eligible community buildings include, but are not limited to:

• • Village halls.
  • Community centres.

• Community hubs.
• Sports facilities.
• Faith buildings.

The building must be used by the local community or charitable organisation. Applicants must show:

• How the building is used, or if it’s a change of use, extension or refurbishment, how it is planned to be used by the community or charitable organisation.
• That the building is both used:
  • For activities which have a clear social objective.
  • Often and with good levels of building utilisation/occupancy.
• Through your constituting documents, that either:
  • Anyone in the community can use the space or
  • That no-one is explicitly excluded from being able to use the building or
  • Building access is purposefully restricted to protect specific building user groups noted in the charitable objectives.
• Whilst charges for using the building can be an important part of your financial sustainability and are permissible under CARES, you shouldn’t apply if day-to-day access to the building for most users is reserved to those paying annual fees at a rate that would typically exclude much of the population.

The building must be owned or leased by the applicant and, if you are a tenant, you must have:

• A valid and viable lease in place for at least five more years after the project is completed and/or the right to extend it for the equivalent period.
• Evidence of permission from the building owners (or the rights stated in the lease) to carry out all proposed works.
• If the building has previously been a government or local authority building, there must be evidence that the Community Asset Transfer (CAT) agreement is complete.

Buildings that are not eligible

• New buildings (including buildings under construction or first built with a warrant dated after 1 April 2024).
• Buildings where most users must pay high annual fees that would exclude many people.
• Buildings with a lease of fewer than five years.

Measures that are not eligible

CARES will not fund the following:

• Measures that do not result in carbon savings, or that would result in carbon increases.
• Battery Storage scale – where it is considered by Local Energy Scotland that a proposed battery scale is not aligned to the scale of demand and generation, we may ask for further clarification or adjust the funding offered.
• Intrusive energy efficiency measures – for example new double glazing, fabric-integrated roof insulation, external wall insulation or internal wall insulation that require wider renovation/significant access and/or reinstatement work.
• LED lighting – funding may be available through the Scottish Government’s SME Loan Scheme available from Business Energy Scotland or other funding sources to support this.
• Costs related to wider building renovations – if your building requires a major refurbishment, you must ensure you have sufficient funding for that project, including all design costs, preliminaries, and an adequate contingency budget.
• Community buildings with gas, oil, coal or LPG heating where the heating is not being decarbonised as part of the proposed CARES-funded project.
• Retrospective work – for example, if the work has already started or has been completed.
• Funding to replace an existing direct electric heating system with a heat pump is not available where the existing system is working effectively, is affordable, controllable and comfortably heats the community building for the intended uses.

Applying with independent advice

If you have already sought independent advice on the technologies suited to your building, please provide this information alongside your application.

If you are unsure about which measures to include, we recommend that you seek independent advice, ie:

• If your project is part of a larger renovation, the project’s professional advisors should confirm the reasons for your technology choices.
• A recommendation from an independent advisor registered with an appropriate professional institution such as CIBSE.
• An energy report from Business Energy Scotland.
• An Energy Performance Certificate (EPC) that includes the appropriate recommendations.
• A feasibility study or options appraisal completed by an independent energy consultancy.

Applying without seeking independent advice

If you already know the measures you’d like to install, and these are included in the following list, you do not need to seek independent advice before applying:

• An air source heat pump and hot water heating system.
• Solar photovoltaic (PV) panels and battery storage, installed at the same time and by the same installer.
• Cavity wall, loft, and underfloor insulation, where these can easily be installed.
• Appropriate energy saving controls that are linked to new installations to ensure they operate efficiently.

We will review your choice of measures as part of the appraisal process. If required, we will ask you or your contractor to provide additional information, or we will request that you get independent advice to evidence your choice.

Choosing an installer

Your chosen contractor(s) will design the system. They may also support you in applying for permissions and will then install your chosen renewable and energy efficiency measure(s) in your community building. You must supply the quotation(s) from your preferred supplier for the main renewable energy measures as part of your application.

There must be a proper selection process to appoint your contractor/installer to ensure best value. We recommend that you ask sufficient installers to receive at least three quotations to make sure you are getting the right choice of contractor for you.

If it’s not possible to get three quotes, you must provide evidence of seeking additional quotes. You can submit the single quote to Local Energy Scotland for a value-for-money assessment.

All quotes should:

• Separate costs for each technology, confirming the size of each technology and details of equipment that will be installed (ie make and model numbers, kW, kWp or kWh capacity, or area (m²) and depth of insulation).
• State the applicant’s name and the address of the building benefiting from CARES funding.
• Confirm the rate of VAT payable.

We will not undertake a full technical review of your quote(s).

Where measures are being installed as part of a wider renovation process, the procurement may be completed by your design team. Where this is the case, you must demonstrate to Local Energy Scotland that a fair procurement process has been undertaken. An example process is set out in our frequently asked questions.

Microgeneration Certification Scheme (MCS) certified installers and products should be used for all installations of renewable technologies.

• Where the proposed technology is covered by MCS, accredited installers must be used. You can use Energy Saving Trust’s Renewables Installer Finder to find accredited installers near you or the CARES capital works supplier list for contractors who have expressed an interest to work on CARES projects. For most projects, it’s best to choose contractors early on so they can help with any necessary consents and permissions.
• MCS-certified products should be installed wherever they are available to ensure the best consumer protection. The installation of non-MCS certified products must be approved in writing by Local Energy Scotland and generally only applies to products outside the scope of MCS, electrical storage and air-to-air heat pumps.
• For applicable renewable energy measures, you will be required to upload the MCS Certificate as part of your project close process (unless this is otherwise agreed when your project is approved).

Where possible, energy efficiency measures should be installed by contractors certified to install the measures against the relevant Publicly Available Specifications (PAS) standards. These may vary according to the work required and the building to be upgraded, but may include PAS 2030, PAS 2035 or PAS 2038. Where certified contractors aren’t available in your area, applicants should set out the relevant experience of the contractor/trade person. For more significant energy efficiency measures such as cavity wall insulation, you’ll need to use a specialist energy efficiency contractor who we expect to be accredited.

Any controls and other electrical work must be compatible with the installed systems and should be undertaken by a qualified electrician.

We’ve put together some text that you can use when contacting installers for quotations – see our guidance on obtaining quotes from installers.

Post installation

You’ll also need to commit to:

• demonstrating the low carbon technologies in the building and raising awareness among building users and the wider community. This includes promoting support available from Home Energy Scotland to help people with energy at home.
• creating a maintenance plan prior to the final grant claim that ensures good documentation management, warranty information, insurance & renewal plans, and a succession strategy to ensure the ongoing management of the energy saving equipment.

Resources to help you deliver your project

These are some of the resources available to help you deliver your project:

• Energy options for community buildings site guide – this short guide can help you with ways to reduce energy use in your community building.
• Project model: solar PV installation on a community building – this short guide focuses on the approach to installing solar photovoltaic (PV) panels on community buildings and provides guidance on things you should consider.
• Energy Saving Trust’s in-depth guide to heat pumps – this guide provides information about heat pumps and issues you should be aware of. Heat pumps aren’t suitable for every building and your installer will help assess suitability for your site. You can also watch our recent webinar here.
• Renewables Installer Finder – this free online tool helps you find local installers and might help you shortlist contractors to invite to tender. Local Energy Scotland can provide additional support to help you specify the work and select contractors to complete the work.
• Microgeneration Certification Scheme (MCS) – MCS certifies installers and products and provides standards for microgeneration installations.
• Please read this fund guidance and the organisation fund eligibility check carefully to find out if your organisation, building and improvements are eligible for CARES funding. We’ve also put together some answers to frequently asked questions to help you decide if the fund is right for you.