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You are here: Home / Community Development / Local Energy Scotland: History, Mission, Funding, and Community Energy Impact

Local Energy Scotland: History, Mission, Funding, and Community Energy Impact

Dated: May 1, 2026

Introduction

Local Energy Scotland is a Scottish Government-funded consortium that supports the development of community-led renewable energy projects across Scotland. Acting as a central hub for expertise, funding, and advisory services, it helps communities participate in the transition to net zero emissions.

The organisation is best known for managing the Community and Renewable Energy Scheme (CARES)—a flagship initiative that enables local groups, businesses, and public bodies to develop sustainable energy solutions.

History and Background

Local Energy Scotland was established in 2013 as part of Scotland’s broader strategy to expand renewable energy and community ownership in the energy sector.

Key Historical Milestones

  • 2013: Formation as a consortium to deliver CARES
  • Built from a partnership of organisations including:
    • Energy Saving Trust
    • Changeworks
    • Energy Agency
    • SCARF

The organisation was created to address barriers that communities face in developing renewable energy projects—especially access to funding, technical expertise, and project planning support.

Over time, Local Energy Scotland has expanded its scope to include local authorities, housing associations, and community enterprises, making it a cornerstone of Scotland’s clean energy transition.

Mission and Purpose

Core Mission

Local Energy Scotland aims to support communities to engage with, participate in, and benefit from the transition to net zero emissions.

Strategic Objectives

  • Enable community ownership of renewable energy projects
  • Promote sustainable local energy systems
  • Support Scotland’s target of 2GW of locally owned energy by 2030
  • Reduce carbon emissions and energy costs

Key Focus Areas

  • Renewable energy generation (solar, wind, hydro)
  • Energy efficiency and heat decarbonisation
  • Community benefit and shared ownership models

Local Energy Scotland also emphasizes inclusive participation, ensuring that communities—especially rural and underserved areas—can access energy opportunities.

Governance and Structure

Local Energy Scotland operates as a consortium model, combining expertise from multiple organisations.

Core Consortium Partners

  • Energy Saving Trust (lead administrator)
  • Changeworks
  • Energy Agency
  • SCARF

Additional Delivery Partners

  • Community Energy Scotland
  • Development Trusts Association (DTA) Scotland
  • CEMVO Scotland

Operational Model

  • Regional development officers provide local, on-the-ground support
  • Central coordination ensures policy alignment with the Scottish Government
  • Collaboration with contractors for technical and feasibility support

This structure allows Local Energy Scotland to combine policy expertise, technical knowledge, and community engagement effectively.

Funding and Grants

Local Energy Scotland administers funding primarily through the CARES programme, which provides both financial support and advisory services.

Types of Funding Available

Grants

  • Support feasibility studies and early-stage project development
  • Fund energy efficiency upgrades in community buildings

Loans (including low-interest or interest-free)

  • Cover high-risk pre-planning costs
  • Enable capital investment in renewable energy projects

Technical Support

  • Access to consultants for feasibility assessments
  • Project design and procurement assistance

Example Funding Schemes

  • Community Buildings Fund – supports energy efficiency and emissions reduction
  • Community Energy Generation Growth Fund – supports large-scale renewable installations

Funding is aligned with Scotland’s climate goals and aims to reduce barriers to entry for community-led projects.

Major Programs and Initiatives

Community and Renewable Energy Scheme (CARES)

The flagship programme managed by Local Energy Scotland, CARES provides:

  • Funding for renewable energy installations
  • Support for shared ownership projects
  • Advice on community benefit agreements

It is central to Scotland’s ambition to create a decentralized, community-driven energy system.

Local Energy Systems Development

Local Energy Scotland supports integrated systems that connect:

  • Electricity
  • Heat
  • Transport

These systems aim to balance local energy supply and demand, improving efficiency and resilience.

Community Ownership and Shared Ownership

  • Encourages communities to own or co-own renewable energy assets
  • Helps negotiate benefits from commercial renewable developments

Resource Hub and Advisory Services

  • Free guides, toolkits, and case studies
  • One-to-one support from development officers
  • Mentoring and knowledge-sharing platforms

Impact and Examples of Work Funded

Local Energy Scotland has had a significant impact on Scotland’s renewable energy landscape.

Community-Level Impact

  • Installation of solar panels, wind turbines, and heat pumps in community buildings
  • Reduced energy costs for local organisations
  • Increased community resilience and energy independence

Economic Impact

  • Community benefit funds delivering millions of pounds annually
  • Example: recent projects generated over £30 million in community benefits in a single year

Environmental Impact

  • Contribution to Scotland’s net zero targets (2045)
  • Reduction in greenhouse gas emissions

Example Projects

  • Solar PV installations on community centers
  • Energy storage systems for local grids
  • Community-owned renewable energy cooperatives

Social Impact

  • Strengthened local economies
  • Increased community engagement in sustainability
  • Development of skills and local employment

Conclusion

Local Energy Scotland plays a critical role in advancing Scotland’s community energy transition. By combining funding, technical expertise, and grassroots engagement, it empowers communities to take control of their energy future.

Through programmes like CARES, the organisation not only accelerates renewable energy adoption but also ensures that economic and social benefits remain within local communities. As Scotland moves toward its ambitious climate targets, Local Energy Scotland will remain a key driver of sustainable, inclusive, and locally owned energy systems.

For more information, visit here.

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