Welsh Government announces £10 million to help Welsh communities cut energy bills

March 2026 | Communities and 'place', Featured, Nature and climate, Rural poverty

The Welsh Government has announced the third round of the Ynni Cymru Grant Capital Scheme for 2026-27 which opens for applications this month.

According to the Welsh Government the scheme deploys Smart Local Energy Systems (SLES), helping communities use clean energy to cut costs, create jobs and build stronger local infrastructure.

This can include installing solar panels, heat pumps, EV charging points and battery storage, and is open to community energy organisations, social enterprises, public sector bodies and SMEs.

The two previous rounds of Ynni Cymru funding has supported 78 projects across Wales with £22.9 million investment.

In a statement Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans said:

“This £10 million investment puts communities in control of their energy future. From city leisure centres to rural community halls, smart local energy systems are cutting bills, reducing emissions and protecting vital services.

After this round of funding opens, we will have invested more than £32 million in total to transform community energy in Wales, helping more communities than ever to generate their own clean energy. Our investment is delivering real change — making Wales greener, stronger and ready for the future.”

In the statement the Welsh Government gave the example of the £150,000 awarded to Cardiff-based charity Boomerang, which supports and prevents homelessness, poverty, and social isolation, through the scheme last year.

They are decarbonising four industrial units by fitting air source heat pumps, battery storage, and EV chargers linked to an existing rooftop solar system, and plan to power ten repurposed shipping containers with clean energy.

The containers will form a community village with a café, charity shops, training rooms, and startup spaces.

The completed SLES is expected to save 70% of the charity’s electricity costs and has already removed fossil fuels from the site entirely.

Founder and CEO of Boomerang Cardiff, Paul Gwilym said:

“Ynni Cymru is not just an energy grant, it is an investment in community resilience. At Boomerang Cardiff we have seen firsthand how rising energy costs place enormous pressure on charities and the families we support.

By investing in renewable infrastructure, we are reducing our overheads, protecting frontline services, and reinvesting thousands of pounds every month back into direct community support.

This funding strengthens our long-term sustainability, supports Wales’s green ambitions, and ensures that every pound saved on utilities goes straight back into helping children, families and individuals who need us most.”

To learn more about the grants and how to make an application, follow this link to the Welsh Government’s website.

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