£5.9m to support sustainable island community projects

£5.9m to support sustainable island community projects

The Isle of Eigg

The eco-renovation of affordable homes on the Isle of Eigg is one of 23 community-led projects to benefit from dedicated islands funding in 2025-26.

The projects, spanning 22 islands across Argyll and Bute, Highland, Na h-Eileanan Siar, North Ayrshire, Orkney, and Shetland, include four islands - Luing, Lismore, Scalpay and Ulva – which will benefit for the first time.

These local authorities will share £5.9 million of funding from the Scottish Government’s Islands Programme and the Carbon Neutral Islands Fund to create and safeguard infrastructure projects on their islands with the Scottish Futures Trust providing coordination and advice.

The Net Zero Homes project is a two-phase programme of works to complete the eco-renovation of the Isle of Eigg Heritage Trust’s (IEHT) ten affordable rent homes. These homes represent 19% of Eigg’s total housing and are critical infrastructure for retaining population and sustaining the island’s economic and social resilience.

The Phase 2 project is being delivered alongside a unique partnership with Highland Council’s Energy Efficient Scotland: Area Based Scheme (EES:ABS), which will provide insulation, ventilation, and solar PVs installations across IEHT’s homes and other rented and privately owned Eigg homes. This partnership ensures value for money and greater impact for NZH-2.

Completion of NZH-2 will improve Eigg’s housing infrastructure by meeting or exceeding EPC targets, reducing reliance on fossil fuels, and enabling a gradual increase in rents as tenants benefit from homes that cost less to heat.

The rent increase will support IEHT’s staffing costs, enable new economic/social development, and start to build a capital reserve ring-fenced for housing maintenance and repairs.

The project will protect ten community-owned assets, using a fabric-first approach, by delivering:

  • 1 home with new roof and guttering to reduce heat loss and water ingress
  • 3 homes installed with roof insulation (ineligible under EES:ABS)
  • 3 homes with re-rendered chimneys (6 in total) to repair cracked and defective finishes
  • 10 homes with appropriate cowls fitted to enable trickle ventilation and shift accumulated moisture
  • 5 kitchens replaced to increase the percentage of the houses being retrofitted with internal wall insulation
  • 1 full eco-renovation of a vacant house in poor condition (following the death of a long-term tenant)
  • 10 homes with electrical upgrades to meet EICR regulatory standards.

Deputy First Minister Kate Forbes said: “Our island communities are bursting with ambition, innovation and potential, and the Scottish Government is committed to supporting local priorities and long-term sustainability. Indeed it the underpinning objective of the Convention of the Highlands and Islands to take a collective, strategic approach to unlocking economic opportunities and tackling issues.

“I am pleased we have been able to provide substantial funding towards projects across island areas. They are all fine examples of how we can work together with communities and local authorities to boost island economies in ways that are sustainable and generate revenue that can be reinvested locally.”

The Highland Council’s Lochaber Committee chair, Cllr Kate Willis, said: “This support is really encouraging news for the Small Isles communities, and I am delighted that these funds are being delivered.

“On Canna the community and the National Trust for Scotland see the redevelopment of the barn as key to the island’s 10-year regeneration strategy. It will link with other planned developments including new affordable housing and improvements to the visitor facilities and infrastructure.

“On Eigg, the community is building on earlier fantastic efforts which brought off grid renewable energy to power an island which had previously relied on diesel generator. The infrastructure upgrades will support further renewable generation and distribution, while the renovation scheme will secure the long-term viability of Eigg’s community-owned housing stock.

“These are terrific initiatives helping to regenerate island populations in an innovative and sustainable manner.” 

The 18 successful applications for the Islands Programme this year include:

  • Redevelopment of the former Royal Hotel - Bute - £400,000
  • Community Halls Digital Hubs phase 2 - Colonsay, Jura, Luing and Lismore - £125,000
  • Lighthouse Keepers Cottages Heritage Project - Tiree - £306,050
  • Ulva Landing Craft - Ulva - £40,020
  • North Uist Community Heritage Centre (Carinish Old School) - North Uist - £83,235
  • Comunn Eachdraidh Nis - Lewis - £100,000
  • Scalpay Community Heritage Centre - Scalpay - £647,280
  • Leverburgh Village Hall Regeneration Project - Harris - £474,071
  • South Skye Community Campus - Skye - £327,393
  • Coroghon Barn Technical Design - Canna - £250,800
  • Eigg Electric Resilience and Enabling Works - Eigg - £32,900
  • Eigg’s Net Zero Homes phase 2 - Eigg - £94,946
  • Arran Youth Foundation Youth Centre - Arran - £382,399
  • Lochranza Securing a Future in Marine Tourism - Arran - £129,718
  • Brodick Hall Island Hub - Arran - £323,925
  • UHI Orkney Student Accommodation - Orkney Mainland and outer isles - £346,200
  • Scalloway Waterfront Regeneration - Shetland Mainland - £80,000
  • Janet Courtney Hostel Refurbishment to Affordable Housing - Shetland Mainland - £350,000

There were five successful applications for the Carbon Neutral Islands Fund this year:

  • Vatersay Community Hall and Café – Decarbonising Community Spaces (Comhairle nan Eilean Siar) £249,007
  • Sellafirth Community Hub (Shetland Islands Council) £298,674
  • Hoy Community Transport Electrification Project (Orkney Islands Council) £131,484
  • Millport Solar PV and Battery Project (Phase 2) (North Ayrshire) £293,101
  • Decarbonisation of Islay Community Buildings Phase 2 (Argyll & Bute) £401,843
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