Community energy explained

Community energy has huge potential in reducing the nation’s carbon footprint and reaching net zero. Community-owned renewable energy projects can help reduce the UK’s reliance on fossil fuels by generating clean, low carbon electricity.

One of the best things about community energy projects is that, because they’re owned by the community, you feel the benefits locally. Benefits to the community include:

• Creating a connection between the community and their renewable energy project, so they feel empowered.
• Inspiring the community to work together and solve other local issues, like improving transport connections.
• Taking positive action to tackle the climate emergency, showing everyone that positive change is possible.
• Lower energy bills and more income to fund local projects.

Are you ready to start using the power of your community to experience the benefits of generating your own energy? You can get support and advice on:

• setting up groups
• conducting feasibility studies
• financing projects

Depending on where you are, you can find more information about community energy projects in your area from these organisations and schemes:

• England: Community Energy England
• Wales: Community Energy Wales
• Scotland: Community Energy Scotland
• Northern Ireland: Community Energy NI

For more information, see how how we can support your community energy project.

If you’re looking for funding for your community energy project, there are a few programmes available:

Great Britain: Ofgem Energy Redress Scheme

We run the Ofgem Energy Redress Scheme in England, Scotland and Wales. The programme collects funds from companies that have breached energy rules and redistributes them to charities and community groups.

Part of the programme is the Just Transition Fund, which is which is helping to develop up to 110 megawatts (MW) of renewable energy capacity.

Wales: Welsh Government Energy Service

The Welsh Government Energy Service supports community and public sector organisations in Wales to transition to net zero. The programme is funded by the Welsh Government and delivered by a consortium led by us and Carbon Trust, with support from local partnerships.

Scotland: Community and Renewable Energy Scheme

There are many rural areas that have wind turbine and hydroelectricity projects. These let more remote communities make the most of their natural resources to become more self-sufficient.

But more communities in urban areas are developing renewable energy projects too. For example, by putting solar panels on the rooftops of public buildings to improve their neighbourhood.

We support community energy projects through the programmes we deliver for Ofgem, the Welsh Government and the Scottish Government. 

Here are some examples from across Great Britain of community energy projects we’ve helped with through different programmes.

Funded by Energy Redress, this project by Repowering London will unlock community-owned rooftop solar panel sites across four London boroughs:

• Southwark
• Hammersmith & Fulham
• Newham
• Barnet

In each of these boroughs, a local energy co-op will develop their rooftop solar project in an otherwise challenging urban context. We’ve seen that London boroughs have the lowest concentration of solar panels in the UK due to a high percentage of flats and a low degree of home ownership.

These projects will use funding from the scheme to assess the technical, financial, and social feasibility for solar panel sites. 

The portfolio of rooftop solar sites developed through this project will ultimately generate 1,680 megawatt hours (MWh) of electricity every year. Over the lifetime of these installations, the sites will save an estimated £77,000 on energy bills.

The Welsh Government Energy Service has supported community groups in Pembrokeshire, Carmarthenshire and Neath Port Talbot to install wind turbines. These provide enough clean energy to power thousands of homes every year.

Support involved conducting feasibility studies and helping with buying land and planning permission.

The Welsh Government Energy Service also provided support with accessing the (now closed) Feed-in Tariff Scheme. This means the communities get a secure income from generating renewable electricity – income that can be reinvested in other local projects.

Working with community organisation Egni Co-op, the Welsh Government Energy Service supported the installation of 6,000 solar panels on the rooftops of public buildings across Newport. These included schools, care homes and a council .

These solar panels have the potential to lower the council’s carbon footprint by 348 tonnes of CO₂ a year.

The Community and Renewable Energy Scheme (CARES) supported Friends of Duddingston Primary School to install 30KW of rooftop solar panels, reducing the school’s energy bills and its carbon footprint.

CARES provided funding through a development loan and offered support with accessing the Feed-in Tariff Scheme. This let the school sell extra energy to the grid and generate £40,000 in extra income over 25 years.

This income will be used to benefit the school and the wider community, improving the school grounds and enabling pupils to take part in activities. Isla, a student at Duddingston Primary School said: “I’m really happy we are doing something at school that will make an actual difference.”

With support from CARES, the development trust Greener Kirkcaldy kitted out their community centre with 19.2 KW of rooftop solar panels. It also installed a battery energy storage system and an electric vehicle charging point.

The project cuts CO₂ emissions by 6.4 tonnes and saves £1,850 in energy bills every year. And with 12,000 annual visitors to the centre’s cookery school, café and events space, it shows the power of renewable energy to the community.

CARES provided funding and support to the Coigach Community Development Company in the installation of a 500kw wind turbine. Through the Feed-in Tariff Scheme, it has generated around £500,000 in three years for community projects

During the Covid-19 pandemic, this income was used to provide immediate financial support for local families, whose tourism livelihoods had disappeared overnight.