The £1.5 million Community Energy Generation Growth Fund will support local communities in installing wind turbines and solar panels or developing other types of renewable energy generation, such as hydro, to meet local needs.

Community groups will also be able to earn money from their projects by, for example, allowing them to sell excess energy generated.

The fund forms part of the Scottish Government’s Community and Renewable Energy Scheme (CARES), which, to date, has awarded more than £65m in funding to over 900 renewable energy projects across the country.

The pilot scheme runs until March 2025 and will inform longer-term support for community-owned energy generation projects through CARES.

Net zero secretary Màiri McAllan said: “Scotland is fast becoming a renewable energy powerhouse, with enormous benefits for our people, economy and environment.

“Scotland’s communities must be at the heart of this journey. I am determined to ensure they can lead and benefit from this era defining transition.

“This fund will support the creation of locally owned energy projects which can reduce energy costs, generate revenue and help drive Scotland’s transition to net zero.”

Chris Morris, manager at fund administrator Local Energy Scotland, said: “We are excited to support this fund and we know that there are communities across Scotland who are developing renewable energy projects who can accelerate their projects with this funding.

“This fund can help communities to realise their ambitions and Local Energy Scotland can help identify the best opportunities and prioritise next steps.”