A Glasgow-based charity that supports young parents struggling with addiction is facing the possibility of closure due to soaring energy costs, highlighting growing financial pressures on nonprofit organizations amid the current energy crisis.

Rosemount Lifelong Learning, headquartered in the Royston area of north Glasgow, reported energy bills reaching as high as £25,000 in a single quarter last year, a sharp increase from previous annual expenditures. The charity's CEO, Sean Morrow, said the variable energy rates in 2022 caused a significant budget strain, with the building’s gas bill typically around £5,000 per year still representing a substantial financial challenge for a small organization.

Morrow described the unpredictability and one-off spikes in energy costs as particularly damaging, making financial planning difficult. He explained that while the charity believes installing solar panels could stabilize fuel expenses and provide an additional revenue stream by selling surplus power to the National Grid, bureaucratic obstacles have stalled progress.

Rosemount Lifelong Learning applied for the Scottish Government’s CARES grant program, which is designed to assist community organizations in implementing renewable energy technologies. The charity also sought funding from Glasgow City Council’s green energy grants. However, the application process involved extensive requirements, including five-year evaluations, securing planning permission, and potential lease renegotiations, making the endeavor untenable for the charity.

“The requirements were so much that I pulled the plug several times,” Morrow said, adding that the complex process forced a halt to the solar panel application. He noted that Rosemount is not alone in facing these challenges, as many similar organizations are struggling to obtain adequate funding amid increasing bureaucratic demands.

Recent months have seen further pressure on third-sector groups, with the closure of a residential drug treatment center in Glasgow’s Tradeston area after its council-owned landlord significantly increased rent. Turning Point Scotland, which operated that facility, cited the rent hike as the primary factor behind its shutdown.

Energy prices have continued to rise following geopolitical events, including the Russia-Ukraine conflict and tensions involving Iran, which have driven up gas costs significantly since 2022. These external factors exacerbate financial difficulties for nonprofits reliant on stable operating budgets.

The Scottish Government, responsible for administering the CARES program, stated that its eligibility criteria and funding processes are reviewed regularly to maintain simplicity for applicants and ensure public funds are used effectively. However, the experiences of Rosemount Lifelong Learning suggest challenges remain for smaller organizations navigating renewable energy funding pathways.