Ynni Cymru Grant phase 2: clarification questions
Answers to questions raised during the Ynni Cymru Smart Local Energy Systems funding webinar.
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In this page
1. Who can apply
See Guidance Note, section Who Can Apply for further information.
Can housing associations apply, including larger ones that are no longer SMEs?
Yes, housing associations may be eligible to apply, particularly if they are legally constituted as social enterprises or fall within other eligible categories. Larger housing associations can also be considered, even if they are no longer SMEs—for example, those operating as Industrial and Provident Societies with charitable rules. We recommend contacting us directly to confirm eligibility based on your organisation's specific status.
Can an off-grid community building apply?
Off-grid community buildings may be eligible, depending on ownership and operational structure. Please review Guidance Note for full details on eligibility requirements.
Can organisations not based in Wales apply if the project is located in Wales?
No, the lead organisation must be headquartered or have an operating base in Wales to apply.
2. Eligibility criteria
Does the £1,000,000 per organisation apply to partner projects as well?
A maximum grant award of up to £999,999.99 can be awarded per organisation. There is also a maximum grant award limit of up to £999,999.99 per project (subject to pathway).
Does the business require a substantial lease?
Applicants must provide appropriate evidence that they own, lease or have appropriate permission so that they can access and carry out works on the site(s) or building(s) the SLES system is proposed for. Lease agreements must be for at least 3 years from the date of the application. Refer to Lease of Building/Ownership section of the Guidance Note.
When does planning consent need to be in place?
See Planning Permission section of the Guidance Note – if planning permission is required, applicants must provide evidence that all necessary consents are either already in place or can be obtained within the project timeline, without impacting the delivery of the SLES.
We have five community halls, each with project costs under £10,000, and each project is a separate SLES. Are we eligible for funding, and what are our options?
There is a minimum funding amount of £25,000. Multi-site projects may be considered if they function as part of a wider SLES, but if the halls cannot be connected via a Management System, Virtual Power Plant (VPP), or Local Energy Market, they can't be combined into a single application.
3. Smart Local Energy Systems (SLES)
See Guidance Note, sections Eligible Technologies and SLES Principles for further information.
Eligibility and coverage
If a location already has electric heating, can the SLES be used to decarbonise that heating?
Yes, if the project meets the SLES criteria and requirements, it may be eligible for funding. You will need to demonstrate the carbon and cost savings associated with the
SLES.
Can this funding be used to enhance work already done towards a community centre's net-zero journey, such as adding a new heating system after solar panels were installed?
Yes, you can enhance previous work if further technology or improvements are required, such as upgrading or adding new systems as long as the works deliver a SLES as defined in the guidance.
If a charity’s ASHP (Air Source Heat Pump) and solar system are at the end of their life, will funding be available for upgrades?
Replacement of existing low carbon heat systems still within their useful operating life are ineligible for funding.
Is air conditioning eligible as a low-carbon heat technology under the grant?
Air conditioning used solely for cooling is not eligible. However, a heat pump system that provides both heating and cooling may be eligible if it forms part of a Smart Local Energy System (SLES) and delivers carbon savings.
Would a heat network driven by a heat pump be classified as one of two technologies for SLES?
A heat network driven by a heat pump would count as one eligible technology for a Smart Local Energy System (SLES) project — specifically under low carbon heating technologies. It wouldn't be classed as two technologies because a heat pump driving a heat network is considered a single integrated low carbon heating system.
The guidance groups technologies by function, not by components. So even if there are multiple parts (e.g., heat pump + piping + distribution system), they’re collectively fulfilling one function — low carbon heat delivery.
Does it have to be an Air Source Heat Pump, or can wood pellet systems be eligible?
Ynni Cymru will fund heating systems that provide a decarbonisation benefit where they are delivered as an integral part of a SLES. Biomass heating systems, such as wood pellet boilers, may be eligible for funding, but please refer to the Eligible technologies section of the Guidance Note for full information relating to biomass eligibility
Are water tank heater converters eligible as heat technologies under the grant?
Water tank heater converters may be eligible if they are part of a low-carbon heating system, such as a heat pump or solar thermal setup, and contribute to delivering carbon savings. Standalone electric water heaters without integration into a renewable system are generally not eligible.
Are asset-level energy monitoring systems eligible under SLES?
Asset-level monitoring systems are eligible under SLES where they form part of a comprehensive control solution designed to track and manage the performance, condition, and location of physical assets in real time. These systems should integrate devices, sensors, and technologies using advanced analytics to monitor parameters such as temperature, humidity, and power consumption. However, they must be part of an overarching system that connects all assets within the SLES.
Can electric vehicles (EVs) be included in the transport element of an SLES, especially if Vehicle-to-Grid (V2G) technology is used?
Zero Emission Vehicle Charging Infrastructure (ZVCI) can be funded if it is integrated within a SLES in accordance with the Ynni Cymru Capital Grant Fund Guidance. If an applicant wants to include a Zero Emission Vehicle (ZEV) in their bid, then they must describe how that ZEV interacts and fully integrates with the proposed SLES.
4. Funding and match contributions
See Guidance Note, sections Minimum Match Funding Requirement, and Loan Funding & Financial Requirements.
Combining funding sources
Are we able to combine this grant with other grants/funding schemes like the Low Carbon Heat Grant or Salix Finance?
Yes, combining with other funding schemes is possible. However, other Welsh Government (WG) grants cannot be used as match funding, although WG loans are eligible as match.
Can the match funding come from other public sector sources, e.g. the Egin grant?
Only financial contributions qualify as match funding. While grants from the Welsh Government are not eligible, grants from other sources may be considered as match funding.
If a Local Authority has applied for the WG Low Carbon Heat Grant, can they also apply for the Ynni Cymru grant?
Yes, Local Authorities can apply for both, though please note that grants should not displace existing market provision. Where an Ynni Cymru SLES application includes a heat element we will coordinate with Welsh Government and the Welsh Government Energy Service to determine the most appropriate funding for each project and advise applicants accordingly. Please note that due to the Low Carbon Heat Grant being funded by Welsh Government, this would not be eligible as match-funding.
Eligibility and requirements for match funding
Does the grant require match funding, and can it be provided as in-kind or labour contributions?
Yes, the 2025–26 Capital Grant requires match funding for some applicants, with levels varying by organisation type. Match funding must be a financial contribution—in-kind or labour contributions are not eligible. Please refer to the Minimum match funding requirement section of the Guidance Note for confirmation of the applicable match funding levels, which are minimum requirements.
What is the match funding requirement in a public sector and SME partnership?
Match funding will be calculated based on the capital expenditure (CAPEX) attributable to each partner. Each partner’s contribution is assessed individually in line with their share of costs, which the attachment “SLES Grant Cost and Benefit Schedule” in the application form provides for.
Funding reliability and risks
If a match funding element (e.g. DiCarbon) falls through later, what happens to the grant offer?
The grant amount specified in the Grant Offer Letter (GOL) is fixed and cannot be increased. If match funding falls through, the applicant is responsible for covering any match funding shortfall.
5. Phasing and future funding opportunities
Could a project be divided into 2–3 phases over several years, with just one phase funded in this round?
Projects may form part of wider, long-term schemes. However, all elements funded through this grant must be fully delivered by 31st March 2026.
Will there be another SLES pot next year (2026 or 2027)?
There is no funding commitment for 2026-27 onwards.
6. Project benefits
See Guidance Note, section Benefits of a SLES for further information.
Can you please explain how a typical sports club could benefit?
A typical sports club could benefit from installing a Smart Local Energy System (SLES) in several ways. Benefits include lower energy bills, enhanced energy resilience, new income opportunities (such as hosting more functions and events), and stronger community engagement. The revenue generated from savings and additional income could be used to initiate or further support beneficial community initiatives. There is also Sport Wales funding available (see appendix 2 of guidance note) and applicants should consider the most appropriate fund for their project.
7. Delivery and accreditation
Do you require installers to hold MCS accreditation?
All contractors and subcontractors must be certified installers of low carbon technologies, where appropriate. For technologies covered by the Microgeneration Certification Scheme (MCS), installers must be MCS certified. For technologies not covered by MCS, alternative relevant certifications must be provided—such as HETAS, Flexi-Orb, NAPIT, or NICEIC. Applicants will be required to supply certification numbers for all contractors and subcontractors delivering the works. See section Technology Standards in Guidance Note.
8. Enabling works and ineligible costs
See Guidance Note, section Ineligible Costs for further information.
Is insulation, including External Wall Insulation (EWI), eligible for funding?
Energy efficiency improvements (such as insulation) are only eligible if they are an essential and integral part of the technology’s installation (e.g., adding insulation to ensure an air source heat pump performs effectively). Broader renovation or refurbishment projects are not eligible. External Wall Insulation (EWI) is also ineligible, as it is considered a major fabric upgrade and falls under refurbishment, which is not funded.
Could insulation work count as part of the 25% match funding?
Match funding must be allocated to eligible costs directly supporting the SLES installation or function. Energy efficiency improvements (such as insulation) are only eligible if they are an essential and integral part of the technology’s installation (e.g., adding insulation to ensure an air source heat pump performs effectively). Broader renovation or refurbishment projects are not eligible.
Would funding be available for a football club to develop their clubhouse facilities (e.g., showers/changing rooms)?
Only works directly required for the operation or installation of the SLES are eligible (e.g., minor structural works needed to mount equipment or connect systems). General building upgrades or unrelated preparatory works (e.g., rewiring an entire building or non-essential insulation upgrades) would not be eligible. Broader renovation or refurbishment projects are also not eligible.
Can building retrofit or renovation costs be included in a pilot heat network project, especially if part of a wider scheme?
Only minor enabling works essential to the installation of the heat network may be eligible. Broader building renovations—such as refurbishment or significant building fabric upgrades—are ineligible for Ynni Cymru funding, even if they form part of a wider project. These elements would need to be funded separately.
9. Procurement and quotes
See Guidance Note, Procurement Approach for further information.
Procurement guidelines and queries
Will we need to provide fully costed applications, including three quotes, for a complicated system within 8 weeks? Will there be a Phase 2 application window?
Applicants are expected to provide evidence of their procurement approach as part of the application (see Procurement Process section of the Guidance Note), and this will be assessed. While fully costed quotes may not be required at this stage, applicants should engage with the market as part of the application process —through early design work, estimates, or soft market testing—to inform their project costs. Full procurement would typically take place after a successful application. Please note that contingency costs and any additional/higher costs to that stated in the application form are to be met by the applicant.
Are there exemptions to the requirement for three quotes? For example, if there are limited local suppliers in my area?
You should fully explain your procurement approach in the application. As part of the application, applicants should engage with the market—through early design work, estimates, or soft market testing—to inform their project costs. Applicants should highlight in the application form where engagement has only identified limited local suppliers – i.e a full procurement is only likely to result in one quote being received.
What does ‘local supplier’ mean in the context of procurement? Does it refer to Wales, my region, or my town?
While we do not directly assess whether a supplier is local, using local suppliers can contribute to social and economic benefits in Wales. In this context, a ‘local supplier’ typically refers to a business based in Wales, although benefits at the regional or town level may also be relevant where they support local employment, the economy, or community wellbeing.
Can providers be selected from established frameworks where competitiveness has already been demonstrated?
Yes, providers can be selected from established frameworks where competitiveness has been demonstrated. If a framework agreement follows the required procurement processes, it can be used without the need for a new competitive tender process.
Who sets the 'identical specifications' for quoting?
The applicant is responsible for setting clear and consistent specifications when obtaining quotes. Applicants must provide sufficient evidence to demonstrate a robust and fair procurement process will take place. This will be assessed as part of the application, and supporting documentation—such as quotes or summary procurement records—can be uploaded to support their case.
Any recommendations to feasibility providers and/or suppliers?
You are able to search through Microgeneration Certification Scheme (MCS) accredited suppliers through: https://mcscertified.com/find-an-installer/
10. Claims
Can funding be claimed on receipt of invoice, rather than after payment (assuming procurement rules satisfied)?
The grant is to be reclaimed following evidence of spend; this will require submission of a grant claim form, corresponding contractor invoice and supporting evidence as required (such as photographic evidence that equipment is on site). If this represents a cashflow issue for you please speak to a member of the Ynni Cymru team.
11. Timeline and application process
If the closing date is in June, when will applicants receive the outcome of their bid?
We aim to issue Grant Offer Letters in July/August.
Does the project need to be fully completed by March 2026? Is it possible to extend beyond this date using match funding?
All Ynni Cymru funded SLES elements must be completed by the end of March 2026.
12. Grant general information
Project scope and outputs
What are the expected outputs for the funding?
The funding is designed to support a range of Smart Local Energy System (SLES) projects across Wales. All funded projects must be completed by 31 March 2026. Projects will be assessed and scored based on the expected benefits they deliver.
We have a problem with a Grade 2 listed building where the conservation officer won’t allow solar panels on the roof. Should there be a policy to allow this for projects like this?
We would be happy to discuss these challenges with you to understand the specifics of your situation and whether a SLES incorporating other technologies could be brought forward.
13. Support for applicants
To request support and/or ask questions during the application process please contact ynnicymru@localpartnerships.gov.uk or sign up for one of our Drop In sessions at Ynni Cymru - Local Partnerships.
What support is available for community groups or volunteers with limited knowledge of energy systems and suitable technologies?
Community groups and volunteers can access advice and guidance from the Ynni Cymru team and organisations such as Community Energy Wales and the Welsh Government Energy Service. These organisations offer tailored support to help groups understand energy systems and identify the most suitable renewable technologies for their community buildings.
Are there existing SLES models or software that can be shared?
There are some resources available:
- The System Advisor Model (SAM), a free desktop application for techno-economic analysis of renewable energy projects, including photovoltaics, wind, and geothermal systems.
- The document Smart Local Energy Systems: Lessons for Innovators by Innovate UK Business Connect. This document discusses the integration of energy supply, storage, demand, and infrastructure at a local level, highlighting the benefits and challenges of SLES.
- The Ynni Cymru team also have extensive information on Smart Local Energy Systems. Please contact us for further support.
Is there support available to help develop a project to application stage (e.g. for design or feasibility work)?
Yes. Ambition North Wales has published guidance on project outlines, feasibility, and application development. This resource is available to all.
Is there another fund available to support design and modelling ahead of a future SLES capital bid?
Please see appendix 2 for detail on other funding streams.
Available resources and information
Are details of previously supported schemes available?
Yes, you can find information on previously awarded grants through the Ynni Cymru capital grant funding programme: grants awarded | GOV.WALES
Is there a flyer or document to advertise this on our webpage for local communities to learn more?
While we don’t have a specific flyer, you can use this Ynni Cymru - Local Partnerships link to access the latest updates, including webinar recordings and slides.
How many applications were received last year, and how were they weighted between charities, SMEs, and locations?
Last year, there were 112 applications, with 32 successful projects. The breakdown of successful applicants was:
- Public sector: 19%
- Private sector: 16%
- Community organisations: 66%