£150k funding to support rural shops with energy efficiency
FUNDING of £150,000 will be used to support Shetland’s rural shops over the next three years to improve their energy efficiency.
The money, which comes from the Viking Community Fund, will be administered by Shetland Islands Council (SIC) through its established rural retail services scheme.
Recognising the importance of local shops, the scheme was established in 2023.
It was revealed earlier this year that the scheme would continue using funds from the SIC’s own economic development budget after the original funding source came to an end.
However, the Viking Community Fund has now stepped in to provide £50,000 a year across the next three years, allowing eligible rural shops to undertake energy efficiency improvements.
It is hoped the works will help them to lower their energy consumption and improve the long-term viability of their business.
Businesses located outside Lerwick can apply to the scheme for grants of up to 75 per cent of eligible project costs, with a maximum award of £10,000 per financial year.
Nearly £170,000 has been awarded to shops since 2023, supporting projects like new fridges and freezers, energy upgrades and new equipment to expand services.
Shetland Community Benefit Fund (SCBF) said that rural shops “play a vital role” across Shetland, providing essential goods, supporting employment and acting as community hubs.
“Many businesses, however, face increasing pressure from rising energy costs, particularly those operating from older premises and relying on energy-intensive equipment such as refrigeration, heating and lighting systems,” it added.
There were fears earlier this year that the Hillswick Shop would be forced to close, with backers Northmavine Community Development Company (NCDC) saying they could not “keep ploughing money” into the loss-making business.
However NCDC agreed in March to continue supporting Hillswick Shop for a further 12 months.
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SCBF said the Viking Community Fund money would be used specifically for improving insulation and installing heating systems, LED lighting and energy monitoring equipment where possible.
It can also be used to upgrade refrigeration units to more energy-efficient models.
Viking Community Fund manager Eleanor Gear said the fund was “committed to supporting projects that deliver long-term benefits for Shetland communities”.
“By helping rural retailers improve their energy efficiency, this investment will support local businesses, reduce environmental impacts and contribute to the sustainability of essential community services,” she added.
SIC economic development manager Tommy Coutts said rural shops were “integral to their communities”.
“The rural retail services scheme has been very welcome and supported a wide range of sustainability projects.
“This additional support for energy efficiency measures will further strengthen what we offer to help our rural retail businesses and communities thrive.”
The scheme originally used money from Shetland’s allocation of the UK Government’s Shared Prosperity Fund.
Rural retailers can find out more about the scheme here or by e-mailing ruralretailscheme@shetland.gov.uk.
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