Apply for Community Energy Growth Fund (United Kingdom)

Deadline: 14-Sep-26

The Community Energy Growth Fund provides funding to Scottish non-profit organisations to develop and deliver community-owned renewable electricity generation, energy storage, and energy flexibility projects. Through Scotland’s Community and Renewable Energy Scheme (CARES), eligible organisations can receive up to £20,000 for feasibility, up to £200,000 per year for development, and construction support for larger renewable energy projects. What Is the Community Energy Growth Fund? The Community Energy Growth Fund is a Scottish Government funding opportunity delivered through the Community and Renewable Energy Scheme (CARES). The fund helps Scottish communities move renewable energy projects from an initial concept through feasibility and development to construction and implementation. It is specifically intended for community-owned energy projects that generate, store, or make better use of renewable electricity. The programme can support projects using established technologies such as: - Solar photovoltaic (solar PV) - Onshore wind - Hydropower - Battery energy storage - Demand flexibility - Other established renewable electricity technologies The fund does not support technology research and development. Projects should use proven technologies and focus on delivering practical community energy benefits. What Does the Fund Support? The Community Energy Growth Fund supports three main stages of community energy project development: Feasibility Funding Feasibility funding can cover up to 100% of eligible project costs, up to a maximum of £20,000. This stage can help communities determine whether a proposed renewable energy project is technically, financially, and practically viable. Activities may include feasibility assessments, early-stage project development work, and other eligible costs necessary to establish whether a project can proceed. Development Funding Development funding can cover up to 100% of eligible costs, up to £200,000 per year. This funding is intended for projects that have progressed beyond the initial concept and require further development before construction. Development work may include activities needed to prepare a viable community energy project for implementation. Construction Funding Construction grants provide support toward the costs of delivering eligible community energy infrastructure.

The funding structure is:

- 60% of the first £500,000 of eligible costs - 25% of eligible costs above £500,000 - Loans may also be available for larger projects Applicants should therefore demonstrate how they will meet the remaining project costs and provide a credible financing plan. What Types of Projects Are Eligible? The fund supports community-owned projects focused on renewable electricity generation, energy storage, and improved use of renewable electricity.

Eligible projects can include:

- New renewable electricity generation projects - Community-owned solar PV installations - Community-owned onshore wind projects - Hydropower projects - Battery storage projects - Energy storage linked to existing renewable energy assets - Demand flexibility projects - Enhancements to existing community energy projects - Projects that improve the use of locally generated renewable electricity Minimum Project Requirements Generally, new renewable electricity generation projects should have a minimum installed capacity of 100 kW. New energy storage projects should generally have a minimum capacity of 100 kWh. Exceptions may be considered for certain smaller projects where applicants can demonstrate substantial and lasting community benefit. Who Is Eligible? The Community Energy Growth Fund is aimed at Scottish non-profit organisations that are eligible for CARES funding.

Eligible applicants generally include:

- Scottish charities that operate on a non-profit distributing basis - Scottish companies that meet CARES eligibility requirements - Other non-profit organisations eligible for support under CARES Applicants must have identified a viable community energy opportunity or project idea. The project must also meet the fund’s requirements for community ownership and community benefit. Community Ownership Requirement A key requirement is that supported projects must be community-owned. This means the project should provide meaningful and lasting benefits to the community rather than simply delivering commercial returns to private investors.

Applicants should clearly explain:

- Who owns the project - How the community will participate - How project income will be managed - How benefits will reach local residents - How the project will contribute to long-term community development

Community Benefit: Why It Matters

Community benefit is a central element of the Community Energy Growth Fund. Applicants are expected to demonstrate that their renewable energy project will generate significant and lasting benefits for the community.

Potential benefits can include:

- Long-term community income - Reduced energy costs - Support for local sustainability initiatives - Investment in community facilities - Support for local services - Increased energy resilience - Local participation in renewable energy generation - Reduced carbon emissions - Greater use of locally generated renewable electricity A strong application should explain not only how much energy a project will generate, but also what the community will gain from the project over the long term. Funding Amounts at a Glance The Community Energy Growth Fund provides different levels of support depending on the project stage.

- Feasibility: Up to £20,000, covering up to 100% of eligible costs

- Development: Up to £200,000 per year, covering up to 100% of eligible costs

- Construction: 60% of the first £500,000 of eligible costs and 25% of costs above £500,000

- Large projects: Loans may be available alongside construction funding

The amount available will depend on the project phase, eligible expenditure, and the specific