Over £5.5 million in grant funding has been awarded through the Community Energy Generation Growth Fund

The Scottish Government has announced that over £5.5 million has been allocated to community groups through the first round of the Community Energy Generation Growth Fund this year. Read on to learn more.

Delivering renewable energy benefits to communities  

Over £5.5 million for local renewable energy projects.  

An Island solar farm, community ice rink and a small community wind farm are among almost 50 projects to benefit from more than £5.5 million funding.

Supported through a combination of Scottish Government and Great British Energy funding, the Community and Renewable Energy Scheme’s (CARES) Community Energy Generation Growth Fund will enable 46 community groups to install local renewable energy schemes such as wind turbines and solar panels, to meet local needs.

Energy Secretary Gillian Martin confirmed the 2025 allocations for the Fund whilst at a visit to an Edinburgh Solar Co-op site in southwest Edinburgh, during Scotland’s Climate Week.

The community-run group have been offered more than £480,000 funding to install further solar panels on schools, community centres and leisure facilities across the city generating free electricity for the buildings and a fixed return on investments for local supporters.

Among the projects awarded funding are:

• Arran Community Renewable’s work on building community-owned Glenkiln Solar Farm.

• Eigg Electric to support their work towards decarbonising the island by 2030.
• Huntly Development Trust’s project to generate up to 20MW of potential wind, solar and green hydrogen.

It brings the total number of funding offers through the Fund up to 69 since it first launched last year, supporting 57 different community energy projects.

Cabinet Secretary for Climate Action and Energy Gillian Martin said:

“Scotland is fast becoming a global renewable energy powerhouse, and it is vital that communities share in the benefits from this transition.

“This funding, for stand-alone generation projects, responds to the needs of local groups and has the potential to lever in significant funds for communities by providing the ability to earn money from their projects by, for example, selling the excess energy generated back to the grid. It will also play a key role delivering a just transition to net zero, whilst supporting a greener, fairer future for Scots.

“To further ensure communities see the benefits of the renewable energy transition, we know more can be done. That is why we are calling on the UK Government to go further by mandating offers of shared ownership and to introduce a mandatory community benefits scheme for mature onshore technologies.

“We will continue to work with our partners to grow the community energy sector and, crucially, ensure that the delivery of renewable energy comes with benefits for people in Scotland, as well as supporting progress towards net zero.”

UK Government Minister for Energy Michael Shanks said: “Great British Energy is empowering communities across Scotland to take a stake in their own energy, whether it be investing in solar projects on the Isle of Arran or community wind farms in Aberdeenshire.

“This is our clean energy superpower mission in action – putting communities in the driving seat of energy generation and making sure working people and businesses profit.”

Local Energy Scotland manager Chris Morris, said: “Congratulations to the community groups and charities who’ve worked hard to develop these inspiring projects and proposals. We’re looking forward to working with them and to see the lasting impact they’ll make, locally and across the country.

“This funding marks a step forward for community-led renewable energy in Scotland. Through CARES, we’re enabling local groups to turn ambition into action, developing energy projects that not only reduce carbon emissions but also directly benefit communities with long term social and economic value.”

Background

The Community Energy Generation growth fund is an £8 million fund which is a combination of Scottish Government funding and over £4 million funding from Great British Energy.

Climate Week | Net Zero Nation

Up to £5.5 million of funding will be awarded through the latest round of the Community Energy Generation Growth Fund. This is broken down as follows – with some funding still to be allocated. Figures are correct at time of publication.