You can apply for the CARES Development Fund by visiting the CARES project portal log in page. Select ‘Begin a new project’ and complete the expression of interest form. Make sure to select the ‘Development Fund’. 

The Scottish Government’s Community and Renewable Energy Scheme (CARES) supports community organisations to engage with, participate in, and benefit from the transition to net zero emissions. CARES is delivered by Local Energy Scotland. We provide expert advice and support through our development officers and specialists, as well as funding.

See what funds are open and visit the relevant fund pages to review the guidance information and see if the fund is right for your project. You can also speak to one of the team at Local Energy Scotland for advice.

The CARES Development Fund is designed to help communities take that first step on their community energy journey.

What can the CARES Development Fund be used for and what is available?

The fund is open to communities who are at the start of their community-owned energy or shared ownership journey. First steps include:

  • Raising awareness of your energy project idea.
  • Completing an options appraisal to understand the types of projects you might carry out.
  • Completing a first step feasibility study to see if your idea might work.
  • Funding for some staff time to progress your idea.

CARES can provide other funds as your project progresses, but this fund is all about getting started for either community-owned renewable energy projects or investigating shared ownership (where community groups make an investment in a commercially owned renewable energy project).

Examples of support for early-stage capacity building activities include:

  • funding for events
  • community consultations
  • community energy plans or action plans
  • renewable energy option appraisals
  • initial legal advice
  • support for part-time or temporary staff or a development officer to take your project forward.

Example of a project: If you have an idea to start a community energy project, CARES funds the costs of a consultation meeting with the wider community and the cost of a facilitator to run that meeting. If the community decides to investigate potential options. CARES provides a technical consultant to look at the different community energy options and presents these to the community.

Funding must be used to meet a key and achievable project milestone by the end of February 2026. Most renewable energy projects will take longer than this to complete, so applicants can reapply to CARES for further funding to continue their projects in the future. There is no guarantee that funds will be available or that a subsequent application will be successful.

Grant funding of up to £30,000 to cover up to 100% of eligible costs is available.

The CARES Development Fund is targeted at projects that are just starting up. If your project is at a more advanced stage review, please visit the CARES funding page for other CARES support.

Who can apply?

Scottish constituted non-profit distributing organisations can apply – eligible structures include development trusts, climate action hubs, community energy groups, community councils, etc.

To be eligible for this fund you should be at an early stage in developing your own community energy project or have an opportunity to investigate shared ownership of a commercially owned renewable energy project.

Project delivery

A community may want to work with preferred or existing contractors for lower value works – for example option appraisals, community consultations or legal advice. If so:

  • there must be a clear reason why this is appropriate at this stage, and
  • you must demonstrate how you will achieve value for money.

For higher value work, and in line with good practice, it’s expected that an appropriate procurement exercise will be undertaken to test the market and allow a fair process. Local Energy Scotland can provide support to identify and appoint contractors, including access to Framework contractors and supplier lists.

How will Development Fund applications be assessed?

Your organisation needs to be a Scottish constituted organisation, for example a:

  • Community Benefit Society (BenCom)
  • Scottish Charitable Incorporated Organisation (SCIO)
  • Community Interest Company (CIC)
  • Company Limited by Guarantee (CLG)
  • A wholly owned subsidiary of such organisations.
  • Organisations that are constituted but unincorporated may also apply but must provide additional information.

Your organisation should have:

  1. A community focus: This is defined as a community whose geographic boundary is clearly defined. For example, a community council area, parish boundary, local authority ward or defined using postcodes. Communities of interest will be considered on a case-by-case basis.
  2. A social purpose: The organisation’s main purpose must be consistent with furthering the interests of the community.
  3. Community control: There must be a minimum of three unrelated persons on the organisation’s board and more than half of the voting seats on the board should be made up of community directors who are resident within the defined community/community of interest.
  4. Non-profit distributing: Surplus funds or assets must be reinvested into the organisation’s work to further its objectives.
  5. If you employ people you must comply with Fair Work First guidance. This is a requirement for all public sector grants.

The organisation eligibility assessment will involve reviewing the governing documents you submit and the information provided within your application form. Assessors may also check information available online.

Scoring your project

The project eligibility assessment will be based on the information provided in your application form. It must relate to early-stage work for a community energy project or shared ownership project.

Applications will be assessed by two Local Energy Scotland staff and will be signed off by a manager. The simple assessment will score against three assessment criteria:

1.     Community mandate

  • Assessment of your organisation’s objectives and how these fit with your project idea.
  • Any community engagement undertaken or planned as part of your project.
  • Your potential project’s ambitions and potential impact.
2.     Deliverability

  • That the proposed milestones can be met and CARES funding drawn down on time.
  • You know who will do the work or have a plan to bring in the right people.
  • Your approach to spending the grant is fair and offers good value for money.
3.     How the funding will progress your community energy/shared ownership project

  • Assessing how the proposed activity will help progress your project through the first stages.
  • At an early stage we will assess your project idea and how likely it can be delivered.

For shared ownership projects, we will assess if the right activities for the project stage will be undertaken, along with an initial assessment of the offer of shared ownership. Please note this is separate to the assessment above.

What are the key dates for applications and assessment?

Funding is open on a rolling basis until the end of February 2026 or until fully allocated, whichever is sooner, and funding must be drawn down by Tuesday 17 March 2026.

Need help?

If you need help or have any questions, our team of development officers and shared ownership specialists are happy to help you with your application.