The realization of sustainable plus energy neighborhoods (SPENs) is key to achieving a carbon neutral built environment, and meeting the objectives of the green deal. Financial schemes have demonstrated effectiveness in driving the energy transition of individual buildings. However, the role of financial schemes in initiating the development of SPENs remains unclear. This study aims to address this research gap by investigating the extent to which existing financial schemes support the technological advancements and stakeholders involved in SPEN realization. The focus is on four European countries: Austria, The Netherlands, Norway, and Spain, where noteworthy SPEN initiatives have been established. This study investigates whether and how financial schemes facilitate SPEN development and address the neighborhood-level dynamics. Our research used a mixed-methods approach comprising a literature review, case studies, and interviews. Our findings shed light on two significant barriers within current schemes. Firstly, the schemes rarely incentivize collective energy sharing and may inadvertently impede individuals’ prosumerism. Secondly, they primarily favor individuals capable of making upfront capital investments, rendering them inaccessible to a large portion of European citizens. By identifying these limitations, our study highlights the need for policy adjustments and innovative financial mechanisms to overcome the barriers hindering SPEN implementation. Moreover, our research contributes to the broader understanding of sustainable urban development and offers insights that extend beyond the examined countries, aiding policymakers and stakeholders in other regions facing similar challenges.