Funding Support

We are keen to make this scheme as inclusive as possible; however, we have set some mandatory criteria for projects applying for funding.

Location

• Organisations, and the activities supported through the fund, must be based, or operate within the SP Energy Networks Transmission area of central and southern Scotland. The fund will prioritise projects that are located within or adjacent to priority areas highlighted on this map.

Eligible Organisations

To apply you must be a constituted non-profit-distributing community focused organisation. This includes organisations with charitable status and other not-for-profit status.

Eligible groups are:

• Community Interest Companies
• Community Benefit Societies
• Cooperative Societies
• Development Trusts
• OSCR Registered charities
• Community Transport Organisations
• Other constituted not-for-profit organisations

Local authorities are also eligible for funding as long as the services being provided have a strong community benefit, cannot be funded from existing resources and meet the project criteria.

An application for funding can only be made by one organisation, however partner organisations can be involved in the delivery of a project.

The scheme is not open for individuals to apply for funding.

Eligible Projects

Projects will need to meet the following minimum criteria:

• Demonstrate a strong link to the energy sector
• Focus on net zero measures which principally save carbon and provide cost reductions 
• Support consumers and communities in vulnerable situations. Please see our definition of vulnerability.
• Deliver social benefits for the communities they serve. Please see our definition of social benefits.
• The projects should run independently and have a dedicated Project Manager. The Net Zero Fund can contribute to this cost. The project management budget should be in line with the award amount and project complexity.
• There must be clear additionality demonstrating the need for funding.
• Net Zero grant funding must be spent on eligible capital measures (Including installation costs), with staff time and skills development costs being a smaller spend to enable delivery and ongoing support of the project.  
• Projects must be able to be able to complete within two years of funding being granted and will be required to provide regular reporting to the funders.
• All applications should have a match funding contribution.  Funding will not be granted for 100% of the cost of the project and a level of match funding or time should be included in your proposal.
• Applications must demonstrate value for money through a defined formal procurement process or benchmarked rates from project partners.
• Evidence of costs - Applicants must source up to three quotes from contractors to demonstrate that alternative suppliers have been considered.  Applicants must be able to demonstrate value for money and provide clear rationale for their decision, prior to awarding any required third-party support to deliver your project. Where you are unable to source up to three quotes, please provide a clear rationale, for example, only one specialist contractor available.
• Applications for funding support must be clearly led by the primary applicant, or an eligible organisation as per our fund criteria. Project partners can support with the application process and attend meetings only when it includes the primary applicant or the projects appointed project manager. No direct communication with project partner will take place without the primary applicant or appointed project manager being present.

Please note that the end date of your project must be prior to December 2025

Types of Projects

The fund is open to projects that must fall into one these categories:

1. Energy efficiency capital improvements in buildings, with a focus on domestic or community owned buildings
2. Low and zero emission renewable heating systems and micro- to small-scale renewable power generation (where that power is predominantly designed for use on site), with a focus on domestic or community owned buildings
3. Electric vehicle and e-bike transport and infrastructure
4. Net Zero skills development – only as an addendum to a project focusing on the above three categories.

View examples of eligible project activities.

In deciding what activity, you will ask Net Zero Fund to fund, you should consider whether that activity can be funded in any other way and whether it is already being or has been delivered elsewhere. 

Funding will not be granted for 100% of the cost of the project and a level of match funding or time should be included in your proposal. You should also consider whether your project will represent value for money in terms of the positive outcomes delivered for the money spent.

Expression of Interest

Applicants must complete the expression of interest form to apply for funding support. Second round of funding support is now closed. 

What’s next: Formal Application Process

Projects that meet eligibility criteria and its aims align closely with the fund will be invited to formally apply. 

After reviewing the expressions of interest, we will invite shortlisted applicants to application workshops. The application workshops will provide guidance on the formal application process.