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Supporting Essential Rural Shops Through Energy Efficiency Funding

November 4th 2026

The Viking Community Fund is working with Shetland Islands Council to support Shetland’s Rural Shops over the next three years with funding of £150,000, specifically aimed at energy efficiency measures.

The dedicated fund will provide £50,000 per year over a three-year period, enabling eligible rural retailers to undertake energy efficiency improvements that can lower energy consumption and improve the long-term viability of their businesses. The funding will be administered by Shetland Islands Council through its established Rural Retail Services Scheme.

Rural shops play a vital role in communities throughout Shetland, providing essential goods and services, supporting local employment, and acting as important 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. Recognising the importance of local shops, the Rural Retail Services Scheme was established in 2023.

Businesses located out with Lerwick can apply to the Rural Retail Services Scheme for grants of up to 75% of eligible project costs, with a maximum award of £10,000 per financial year. While the Scheme can fund a range of sustainability projects, those supported by the Viking Community Fund will be specifically for energy efficiency, including:

· Improved insulation and draught-proofing.

  • Energy-efficient heating systems.
  • Renewable energy technologies, where appropriate.
  • Energy monitoring and management equipment.
  • Installation of LED lighting.
  • Upgrades to energy-efficient refrigeration units.
  • Other measures that deliver energy efficiencies.

Our rural shops are integral to their communities and provide a range of services much wider than their retail offering. 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.

Shetland Islands Council, Exec Manager Economic Development, Tommy Coutts

The Viking Community Fund is 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

Viking Community Fund, SCBF Fund Manager, Eleanor Gear

Rural retailers can find out more about the scheme at: Shetland Rural Retail Services Scheme – Shetland Islands Council or by e-mailing: ruralretailscheme@shetland.gov.uk.