The following information sets out the recommended process and key criteria for applying for the Let’s Do Net Zero Community Buildings Fund.

Please also read our answers to some frequently asked questions to work out if the fund is right for you.

How to apply for funding

1. Choose your technology and gather evidence to support your choice.

The technology choice should be recommended in your Energy Performance Certificate (EPC), or if you have one, an existing energy report or feasibility study.  If you don’t have an EPC, report or feasibility study you can get an energy report from from Business Energy Scotland.  You may also wish to start getting quotes from installers (see step 5, below).

2. Complete your application.

Complete your funding application form. To help you, we’ve put together an example application form.

Our local development officers are also on hand to help if you’ve got any questions.

3. Local Energy Scotland will assess your application.

Local Energy Scotland staff will review all applications and supporting documents when they are received. Some applications may require additional approval from the Scottish Government which will lengthen the approval timeline. Your application will be approved or rejected, or we may request further information to assess your application.

4. Sign your grant offer letter.

If your application is successful, we will issue you with a CARES grant offer letter. Once you have checked it and are happy with the agreement, it can be signed and witnessed electronically via Adobe Sign by an authorised signatory along with your submitted application form. Local Energy Scotland staff will administer this.

You must not start any work until you have your grant offer letter and have reviewed the funding conditions.

5. Get quotations from installers/contractors for works.

You can get started with getting quotes whilst your application is progressing, or you can wait for your application to be approved.

Where the proposed technology is covered by the Microgeneration Certification Scheme (MCS), accredited installers must be used. You can also use Energy Saving Trust’s Renewables Installer Finder to find accredited installers near you.

We can support you with this process. It is best to start this early in the application process as your contractor will support you with any consents and grid connections required.

Please ensure you refer to our guidance on requesting quotations from installers (see below for more information), and guidance on requesting quotations.

6. Work with your contractor to deliver the project.

Your chosen contractor should design the system, apply for permissions, and install your chosen renewable and energy efficiency measure in your community building. Please note that CARES grants are usually claimed in stages after you’ve paid the contractors invoice(s). You will be required to submit monthly reports on progress.

Key criteria for funding

Eligible applicant

Applicants must be constituted non-profit distributing community organisations, including organisations with charitable status, that are established and operating across a geographically defined community or faith groups.

Some common community organisation structures include:

  • Scottish Charitable Incorporated Organisations (SCIO)
  • Private Companies Limited by Guarantee (CLG)
  • Community Benefit Societies (BenCom)
  • Community Interest Companies (CIC).

Organisations that are constituted but unincorporated may also apply but must provide additional information.

To be eligible applicants must demonstrate:

  • a minimum of three unrelated persons on the organisations’ management committee or board that are local to the area served by the community building
  • that their area of benefit is in Scotland
  • a commitment to demonstrating the low carbon technologies in the building and raising awareness among building users and the wider community. This should also include raising awareness of support available through Home Energy Scotland to help people reduce energy in their homes.

Eligible buildings

The funding is available to support decarbonising self-managed community buildings. Eligible community buildings include, but are not limited to:

  • village halls
  • community centres
  • community hubs
  • sports facilities
  • faith buildings.

To be eligible, a building must be used by the local community or charitable organisation. Applicants must demonstrate:

  • how the building is used by the community
  • 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
    • the building is used by vulnerable or defined groups stated in the charity’s objectives, for example children, women, refugees.
  • good levels of building utilisation/occupancy.

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 a further five years following the completion of the project and/or has the right to extend for the equivalent period
  • evidence of permission from the building owners (or the rights stated in the lease) to carry out all proposed works.

What improvements will CARES fund?

CARES funding is targeted at supporting communities to decarbonise their buildings. Your project must meet the heating requirement as set out below.

You must apply for at least one core measure before you may also apply for add-on measures. Please see the examples we have provided in the frequently asked questions.

A grant of up to 80% is available.

1. Heating requirement

You will be installing one of these core measures as part of your current project:

  • heat pumps (air, ground or water source) and heat distribution system including heat emitters, pipework and controls
  • connections to a heat network.

Or

Your building will already have one of the following:

  • a heat pump (air, ground or water sourced) and heat distribution system including heat emitters, pipework and controls
  • a connection to a heat network
  • direct electric (including storage heating or electric boilers)
  • biomass heating.

 

2. Core measures eligible for CARES funding.

You must install at least one of the following:

  • a heat pump (air, ground or water source)
  • a connection to heat network
  • solar photovoltaic (PV) panels (if the heating requirement has been met)
  • solar water heating (if the heating requirement has been met).

 

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
  • replacement LEDs bulbs and for appropriate light fittings
  • smart controls.

Note: Add-on measures must be a minority element of the overall funding requested.

Evidence required

Applicants must be able to show a clear rationale for the choice and scale of technology supported through CARES. For example:

  • an Energy Performance Certificate (EPC)
  • an energy report from Business Energy Scotland, or a recent report from Zero Waste Scotland’s Energy Efficiency Business Support, if your organisation qualifies as an SME.
  • a feasibility study or options appraisal completed by an independent energy consultancy or a Local Energy Scotland advisor.

Are there any measures which are not eligible for funding?

CARES will not fund the following.

  • Measures that do not result in carbon savings, or result in carbon increases, are ineligible for funding.
  • Intrusive energy efficiency measures – for example new double glazing, external wall insulation or internal wall insulation that require wider renovation/significant access and/or reinstatement work.
  • The cost 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.
  • Improvements that are required to meet the building regulations – for example, for new builds. CARES will only fund measures that go beyond regulations and the applicant’s design team must have a robust method to identify, evidence, and quantify costs related to improvements that go beyond minimum regulation standards.
  • Community buildings with gas, oil, coal or LPG heating where the heating is not being decarbonised as part of the proposed CARES-funded project.
  • You cannot get funding for an ‘add on’ measure like loft insulation if you are not installing one of the core measure’ such as a heat pump.
  • Retrospective work – for example, if the work has already started or has been completed.

CARES funding available

Grant funding is available for up to 80% of eligible costs, up to a maximum of £80,000. The inclusion or exclusion of VAT in CARES funding offers does not alter the grant maximum of £80,000.

Please note that 80% funding is available for those who can demonstrate need. If you have already earmarked funds for energy efficiency upgrades, have your own resources, or can access funds from elsewhere (for example, from community benefit funds), please only apply for the amount you require from CARES to progress your project. Funding is subject to availability and limited so asking for less than 80% will enable us to fund more community projects.

There is no guarantee that CARES funding will be available. Funding is subject to available budget and your application may be put in a queue or rejected if insufficient budget remains.

The available funding percentage rate and maximum grant is subject to change. If funding is available, the eligible grant intervention rate will be the rate on the Local Energy Scotland website on the date when a fully completed and compliant application is received with supporting information.

Match funding of at least 20% is required and you cannot use other Scottish Government grants or in-kind as match funding. Common sources of match funding include:

  • community reserves or fund raising.
  • community benefit funds, for example, from local wind farms or power utilities
  • other non-Scottish Government funded grants, for example, from Trusts or lottery funding
  • the Scottish Government’s SME Loan fund for an interest-free loan (provided you do not claim the cashback on this loan)
  • bank loans.

CARES grants are usually claimed in stages as the project progresses and contractor invoice(s) are received. Each claim should be submitted at the approved CARES funding percentage, so you must have match funding in place and be ready to draw down the funding.

CARES funding can be used for project development and capital costs. For example:

  • project development costs, such as building warrants, planning permission, grid connection, design and contractor appointment
  • capital or installation costs; the cost to install the ‘core’ renewable energy measures and the ‘add on’ energy efficiency and energy storage measures
  • development costs and ‘add on’ measures should be a minority of the requested costs.

Other help and support available from CARES

As well as funding, CARES provides free and impartial advice and support in other ways too. For example:

  • local development officers can help you progress your funding application and plan your project
  • for complex projects, or where a more technical assessment is required, we can fund one of our technical consultants to support you
  • for higher cost projects, our technical consultants can review quotes or contracts on your behalf, where appropriate
  • our website is packed with resources including case studies, reports and downloadable guides.

Choosing an installer

There must be an appropriate procurement process in place when choosing a contractor/installer in order to secure best value for money. You must seek, or have sought, at least three quotations, and/or will go through an equally fair procurement process that is reviewed by Local Energy Scotland.

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

  • Where the proposed technology is covered by the MCS, accredited installers must be used. You can use Energy Saving Trust’s Renewables Installer Finder to find accredited installers near you. For most projects, choosing contractors is best started early in the process so that they can support you with any consents and permissions required.
  • MCS products should be installed to ensure the best consumer protection. The installation of non-MCS products must be approved in writing by Local Energy Scotland.

Where possible, energy efficiency measures should be installed by contractors certified to install the measures against the relevant Publicly Available Specifications (PAS) standards. This 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.

LEDs and light fittings and controls should be fitted be 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.

Timescales

Once approved for funding, all work related to this funding must be completed and funding claimed within 12 months.

Extensions can be requested and these are likely to be approved where projects can evidence significant progress. To avoid CARES funding being tied up and unavailable for other communities, extensions are likely to be rejected where sufficient progress is not demonstrated and/or where monthly progress reports have not been completed.

Please note that whilst we aim to be as flexible as possible, as with other public funding, Local Energy Scotland are required to work to financial years (1 April to 31 March). This might require you to submit claims at certain times of the year for costs incurred and work completed.

Subsidy control

Subsidy control replaces state aid, which was applicable to the provision of subsidies when we were part of the European Union. Please read our guidance on subsidy control. It is important that you read and understand this and consider whether or not a CARES grant should be considered a subsidy.

Resources to help you deliver your project

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