A New Opportunity for Community Energy in Wales: Ynni Cymru Opens 2026–27 Capital Grant Scheme

Across Wales, community groups, charities, social enterprises, and local organisations are working every day to build stronger, more resilient communities. Now, a major new funding opportunity is available to help them take the next step on their sustainability journey.

Ynni Cymru, the Welsh Government's programme supporting Smart Local Energy Systems, has launched its 2026–2027 Capital Grant Scheme, offering up to £10 million for projects that cut carbon, lower energy bills, and strengthen local energy resilience.

This isn’t just another energy grant. It’s a chance for community organisations to own their energy future, generate local power, and make a real difference to the people who need it most.

What’s the scheme all about?

At its heart, the fund exists to support Smart Local Energy Systems (SLES) – projects where renewable energy, low‑carbon heating, energy storage, EV charging and smart controls work together as one integrated system. Think:

• A community centre powered by its own solar panels

• A place of worship with a heat pump, battery storage and EV charging

• A multi‑building project where local energy is shared and controlled smartly

Ynni Cymru wants to help Wales create local, fair and community‑owned energy systems, keeping the environmental and economic benefits right where they belong — in our communities.

Why this matters for the third sector

Community organisations are uniquely placed to benefit:

✅ 0% match funding required Community groups and social enterprises do not need to contribute match funding — a huge advantage when budgets are tight.

✅ Lower energy bills, more resilience Installing smart, renewable systems helps reduce running costs — freeing up money for frontline services.

✅ Help for communities that need it most Projects in areas with high deprivation receive a 5% scoring uplift, making applications more competitive.

✅ Local ownership means local benefit The scheme prioritises community ownership and reinvestment back into local people.

What can be funded?

Eligible technologies include:

• Solar PV

• Battery energy storage

• Heat pumps (air, ground, or water source)

• Low‑carbon heat networks

• EV charge points

• Smart controls and energy management systems

Projects must include at least:

• One renewable energy generation technology, AND

• One low‑carbon heating technology

…all working together in a smart, integrated way.

Applications can be made through two pathways:

Pathway 1 – £25k to £299,999

Ideal for single‑site or small multi‑site community projects.

Pathway 2 – £300k to £999,999

For larger, more innovative or multi-building schemes such as virtual power plants, local energy markets or community‑wide systems.

Key dates

• Applications open: 26 March 2026

• Deadline: 7 May 2026 at 12pm

• Projects must be completed by: 31 March 2027

Because of the Senedd election in May 2026, the final funding allocation will be confirmed by the new Welsh Government.

Who can apply?

Your organisation can apply if it is:

• A charity

• A CIC

• A community benefit society or cooperative

• A non‑profit voluntary organisation

• A faith group with community benefit

Partnership bids are welcome too — with one lead organisation managing the project.

What makes a strong application?

Ynni Cymru will score applications on:

• Alignment with SLES principles (smart, local, low‑carbon, integrated)

• Deliverability — can you finish by March 2027?

• Community and environmental benefits

• Value for money

Projects that involve local consultation, deliver benefits for vulnerable households, or build long‑term community resilience tend to score well.

Why your organisation should consider applying

This fund is a rare opportunity:

• No match funding required for the third sector

• Support to move to net zero

• Chance to reduce bills and generate long‑term income

• Strengthening energy independence for community buildings

• A way to tackle fuel poverty and improve wellbeing locally

Community organisations—like those supported by GAVO—are exactly the kind of groups Ynni Cymru hopes to empower.

Next steps

If your organisation has a building, a community hub, or a project idea that could benefit from cleaner, smarter energy, now is the time to explore this opportunity.

🔗 Guidance, forms, and drop‑in session info are available via Ynni Cymru. (Complete the form below to receive further information and support from GAVO officers)