Part of the Scottish Government’s Community and Renewable Energy Scheme (CARES), the Community Energy Growth Fund helps communities take community energy projects from idea to delivery.
Is the Community Energy Growth Fund right for you?
This fund is designed for communities that are ready to develop or deliver a renewable energy project. You may be in the right place if:
Your organisation is a non-profit distributing Scottish charity or company and is eligible for CARES funding.
You have identified a community energy opportunity or project idea.
You have identified a potential sites or locations for the project.
You are seeking support to assess feasibility, develop or construct the project.
Not quite ready yet?
CARES offers other support to help you take the next step.
Not sure where to start? Contact our Community Energy Launchpad for advice on your project idea, eligibility and available support.
Looking to improve a community or faith building? The Community Building Fund may be a better fit for your project.
Still exploring project ideas? Browse our community energy case studiesand project models to see how other communities have developed renewable energy projects.
The fund helps communities across Scotland develop, own and benefit from renewable energy projects.
Funding can support community-owned renewable electricity generation projects, including solar PV, wind and hydro, and the integration of energy storage and demand flexibility technologies. Support is also available for projects that combine these technologies through innovative approaches and business models.
Whether you’re exploring an idea, developing a proposal or preparing to deliver a project, this fund could help you take the next step.
Use the guidance below to check whether your project is eligible, understand what funding is available and learn how to apply.
The Community Energy Growth Fund supports community-owned projects that generate, store or make better use of renewable electricity.
Projects must include one or more of the following:
A new renewable electricity generation project with a capacity of 100kW or greater.
A new energy storage project with a capacity of 100kWh or greater, where the storage provides wider grid or energy system services.
The addition of energy storage, demand flexibility, or both, to an existing community-owned renewable electricity generation project with an installed capacity of 100 kW or greater.
Renewable generation projects are normally expected to deliver at least 100kW of installed renewable electricity generation capacity. This can be achieved through:
A single renewable energy installation.
Multiple smaller installations across different sites.
A combination of renewable technologies where the total installed capacity equals or exceeds 100kW.
Additional capacity added to a project previously supported through the Community Energy Growth Fund.
CARES funding cannot be used for technology research and development. Eligible measures must be based on established technologies and may include, but are not limited to:
Solar PV
Onshore wind
Hydropower
Battery storage
Demand flexibility and local supply arrangements that improve the performance, value or viability of renewable generation projects
Projects can use electricity to:
Export electricity to the national grid.
Supply electricity directly to a local energy user with sufficient demand.
Meet the electricity needs of a building or site.
Energy storage can be included as part of a new renewable electricity generation project; however, it cannot be used to meet the minimum 100 kW generation capacity requirement. Support is also available for projects that combine generation, storage and flexibility technologies through innovative approaches and business models.
Projects powering a building – where a building has not yet decarbonised its heating, larger solar PV projects may still be considered on a case-by-case basis. Applicants must provide:
Half-hourly electricity consumption data demonstrating sufficient daytime demand to utilise a substantial proportion of the electricity generated on site.
A credible plan showing how the building’s heating will be decarbonised in the near future.
Repowering existing projects – Support may be available for the feasibility, development and construction costs associated with repowering an existing renewable energy project.
Exceptions to the 100kW generation requirement – Renewable generation projects are normally expected to deliver at least 100kW of installed renewable electricity generation capacity. However, exceptions may be considered for projects below this threshold, including solar PV installations on third-party buildings and smaller wind or hydro developments, where applicants can demonstrate significant and lasting community benefit.
Applicants will need to provide a clear explanation of the benefits the project will deliver and how any project income will be used to create long-term community impact.
Funding is available to help communities explore, develop and deliver renewable energy projects. Support is available at different stages of project development and can include grants, loans and specialist technical support.
Project phase
Funding available
Example of eligible activities
1. Feasibility
Explore a community energy opportunity, assess project viability and determine whether it is worth developing further.
Grant funding up to 100% of eligible costs.
Maximum award: £20,000.
Support from CARES framework contractors may also be available.
Site-specific feasibility studies.
Resource assessments.
Technical and financial feasibility work.
Preliminary development activities.
Repeat applications are permitted. However, previous delivery performance, value for money and progress made following earlier CARES-funded studies may be considered as part of the assessment process.
2. Development
Progress projects from feasibility through to investment readiness.
Grant funding up to 100% of eligible costs.
Maximum annual award: £200,000.
For larger projects receiving support over multiple years, development support is expected to be capped at around 20% of capital expenditure. The final percentage will be confirmed at the start of the 2027–28 financial year. The level of development funding awarded will reflect the project’s scale, technology, complexity and financial viability. Higher levels of support may be considered for projects that test innovative approaches or business models that could benefit the wider community energy sector.
Planning applications.
Technical design.
Grid connection applications and deposits.
Land agreements and leases.
Environmental studies.
Procurement of contractors and equipment.
Securing project finance.
3. Construction
Build and commission community energy projects through a combination of grants and loans
Grant funding
Grant funding* is available on the following basis:
60% of the first £500,000 of eligible construction costs.
25% of eligible construction costs above £500,000, up to the maximum grant award.
For larger projects, a blended grant rate is applied based on the total approved grant award. This means all eligible construction costs are reimbursed at the same percentage rate throughout project delivery, simplifying the claims process.
CARES Construction Loan
Applicants may apply for a CARES Construction Loan to fund some or all remaining eligible construction costs, subject to affordability and loan assessment.
Construction grants and loans can be combined. For example, a project with eligible construction costs of £1.5 million could receive a CARES grant of £550,000 and then apply for a loan towards the remaining £950,000.
Loans are available for terms of up to five years. Interest begins to accrue after an initial 18-month interest-free period. Further details are available in the Pre-Contract Credit Information.
Funding limits
The combined value of CARES grant and loan support is capped at £2 million per financial year. Larger projects may be phased across multiple financial years, subject to funding availability and agreed milestones.
Installation of renewable energy technologies.
Grid connection payments.
Purchase of equipment.
Construction and commissioning costs.
Project management and professional advisers.
Client engineer and specialist technical support.
* Examples of grant support:
Eligible construction cost
Indicative grant
Effective grant rate
£200,000
£120,000
60.0%
£500,000
£300,000
60.0%
£1,500,000
£550,000
36.7%
£7,000,000
£1,925,000
27.5%
This approach allows CARES to continue providing significant support for smaller projects while supporting larger community energy developments.
The combined value of CARES grant and loan support is capped at £2 million per financial year. Construction grant funding is available on the following basis:
60% of the first £500,000 of eligible construction costs.
25% of eligible construction costs above £500,000, subject to the maximum grant award.
For construction projects, CARES uses a single blended intervention rate based on the total approved grant award. This means that all eligible construction costs are reimbursed at the same percentage rate throughout project delivery, making claims simpler to administer.
Worked example: £1.5 million construction project:
Construction costs
Grant support
First £500,000
£300,000 (60%)
Remaining £1,000,000
£250,000 (25%)
Total grant award
£550,000
The total grant award of £550,000 equates to a blended intervention rate of 36.7%. This means all eligible construction expenditure would be reimbursed at 36.7% throughout project delivery.
You can apply if your organisation is a non-profit distributing Scottish charity or company and meets the CARES eligibility requirements.
Applicants should have a clearly defined project, including the proposed renewable technology, site and delivery approach. Check your eligibility before applying.
Applications can only be submitted during open funding rounds. Before applying, check the latest funding round dates and timescales.
Step 1: Submit an expression of interest
Submit an expression of interest through the CARES Project Portal.
Step 2: Complete eligibility checks
Complete the Organisation Fund Eligibility Check and upload the requested documents through the Project Portal. You’ll also need to complete identity verification and anti-money laundering checks.
Step 3: Submit your application
Once your eligibility has been confirmed, you can complete and submit your funding application. Information provided as part of your expression of interest will be pre-populated, so you won’t need to enter the same details again.
What happens next?
We’ll assess your organisation’s eligibility, confirm that your project meets the fund requirements and, if eligible, submit your application for panel assessment and scoring.
We’ll assess your organisation’s eligibility, confirm that your project meets the fund requirements and, if eligible, submit your application for panel assessment and scoring.
Assessment criteria
Short-term considerations
Long-term considerations
1. Viability
Financial and technical viability assessment appropriate to the project stage, and an overall consideration of concept and approach.
Will the milestone being delivered help progress the viability of the project?
Are milestone(s) technically possible and deliverable in the time stated?
What is the preferred financial route to completing the project?
Is the overall project idea viable?
Is there a plan for the ongoing progression of the project?
Is there a plan to fund the project(s) and is it realistic and financially sustainable?
Is the technical solution proven?
2. Impact
The expected installed capacity.
The scale of the revenue for the community from the project.
The plan to spend income generated and the impact of this on the community.
Alignment with Scotland’s Just Transition outcomes.
Will completion of the milestone help the project build out and realise its benefits?
Are the proposed milestones the right ones for this stage of the project?
Are the goals realistic and is the plan likely to achieve the proposed impact?
Will the project achieve high levels of installed capacity/energy generation relative to the investment?
Is the community benefit from the project likely to be greater than the grant award?
What’s the approach to maximising the benefit to the community beyond bill savings.
Is the idea / approach replicable.
3. Deliverability
Proposed milestones can be met and CARES funding drawn down on time.
Project team, responsibilities, processes and capacity.
Technically sound solution that is deliverable and appropriate.
Is a proven technology being used?
Has good progress to date been demonstrated?
Are the CARES-funded milestone(s) deliverable and provide some timing contingency, before the 15 March 2027?
What are the key actions to ensure the deadline is met?
Does the community and their delivery team demonstrate the right skills and resilience to achieve the milestone(s)?
Are risks relating to delivering the milestone(s) understood?
Has the applicant demonstrated a reasonable plan to construct and energise the project?
Does the applicant demonstrate an understanding of challenges to deliver the project?
Has the community demonstrated long term planning like succession planning for the board, staff, etc?
Is the approach to operation and maintenance appropriate for the project?
4. Value for money
Value for money and approach to procuring/ appointing contractors.
Has a sound approach been taken to secure value for money?
Is the proposed approach appropriate for the project stage and spend?
Where the request for funding relates to a multi-year development project, has value for money been demonstrated in work-to-date and through the project plan
Has the community been clear on the approach for achieving value for money for future project stages?
Is the funding for the Project Phase proportional to the overall project? For example, assessing total project development expenditure compared to the capacity and capital costs.
If projects propose to work with preferred or existing contractors for lower value works, for example feasibility, project management and development works, there must be clear rationale as to why this is appropriate at this stage, and you must demonstrate how you will achieve value for money.
For larger scale and construction works, it’s expected that an appropriate procurement exercise will be undertaken to test the market and allow a fair process.
Complete your Organisation Fund Eligibility Check in the CARES Project Portal as early as possible. You must complete the eligibility checks and submit the required documents at least one week before submitting your full application.
The closing date for full applications is noon 14 September 2026.
Eligible applications will be assessed through a competitive panel process. Funding decisions will be confirmed once overall programme funding and approval to award new funds has been received from the Scottish Government.
Approved projects must complete their funded activities and submit all funding claims by 15 March 2027. We encourage applicants to start projects and submit claims as early as possible to allow for any unforeseen delays.
Most renewable energy projects take several years to develop and deliver. You may apply for further CARES funding in future phases of your project, but future funding cannot be guaranteed and any new application will be assessed on its own merits.
Important
Funding is not formally committed until you have received, signed and returned a Grant Offer Letter.
This guide breaks down the development of rooftop solar PV projects into nine stages. For each stage of the project, the guide highlights the roles and responsibilities for community energy organisations and building owners, and the agreements and documents necessary.
