The funding allocation, from the Local Energy Challenge Fund, was announced by the Scottish energy minister Fergus Ewing at the Community and Renewable Energy Scheme (CARES) conference organised by Local Energy Scotland.

The fund was initially announced by the former first minister Alex Salmond MSP last year.

Castle Rock Edinvar Housing Association will receive £3.2m to develop innovative local heat storage solutions, which will help alleviate fuel poverty for over 1,000 tenants across Falkirk and the Lothians.

The other successful recipients are:

In addition to the awarding of the funds Mr Ewing also confirmed the Challenge Fund will be open for a second round.

The Scottish Government will also publishing its consultation on Good Practice Principles on Shared Ownership of Onshore Developments.

Announcing the allocation of the funds Mr Ewing said: “The Scottish Government is defining a distinctive approach to Scotland’s future energy provision; putting communities at the heart of decisions about their local energy system; and empowering them to take an economic stake in new developments.

“These projects are a huge step towards defining a distinctive approach to Scotland’s future energy provision. They will provide vital learning across extremely challenging areas, such as adding value to local economies, matching local supply and demand, and addressing fuel poverty.

“But we know this is just the beginning, and we want to support more innovations like these. This is why the Scottish Government will run a second Challenge Fund, subject to the next spending round, making up to £500,000 will be available in 2015/2016.”