Many communities across the country are taking ownership of renewable energy infrastructure in their area, from solar farms to wind turbines and hydro power projects. Not only are these ventures making a big impact at a local level, but with the right support, they could play an important role in contributing to the country’s net zero targets.
Community energy projects are typically owned and managed by local groups or cooperatives. According to Community Energy England, there are more than 500 community energy projects in the UK with a total installed capacity of 398MW. Electricity generated by community energy schemes saved 165,980 tonnes of CO2 in 2023, the equivalent of 209,570 passenger round trip flights from London to New York.
These figures alone show the potential impact these initiatives can have on transitioning to a cleaner energy system. But we know that a flourishing community energy sector is about more than just gigawatts generated.
Community energy projects offer the chance for individuals to play a role in transitioning to an energy system that’s not only cleaner and more sustainable, but also fairer to everyone.
From creating jobs, enhancing social cohesion and revitalising local economies to tackling fuel poverty and freeing up funds to support local causes, these initiatives have the potential to bring transformative benefits to their communities.
Community energy in action
Electricity generated by community energy projects is sold to the grid, which in turn creates a revenue stream that is used to develop and support projects of social, economic and environmental value to the area, such as local schools, community centres, subsidised transport or food banks.
A good example of this can be found in the village of Sheriffhales, Shropshire. With a population of around 700 people, Sheriffhales relies on an agrarian economy and doesn’t have a village pub, shop or bus service. However, it’s one of the few villages in the UK to own its own solar farm.
Sheriffhales Community Energy is a not-for-profit community benefit society governed by local volunteer directors, owned by its members and operated to benefit the community. The 3.2MW solar farm generates enough electricity to power 825 homes each year and has been successfully generating vital funds for the local community for over six years.
The surplus revenue generated by the farm has supported local social and environmental projects, including funding food parcels during the pandemic, a village hall extension and LED lightbulbs for every house in the parish.
Protecting local biodiversity and wildlife has also been a priority for the project and the land around the solar panels maintains species of grasses, herbs and wildflowers, while bat and bird boxes are located around the site.
On a larger scale, Empower Community Foundation is a charity that owns two solar parks – Drove Lane near Salisbury, England, and New Mains near Arbroath in Scotland. Similarly to the Sheriffhales solar project, any additional income generated from the sale of electricity at each site is distributed back into their local communities.
For instance in Salisbury, Empower has worked with the local council and with Wiltshire Community Foundation to support an initiative called Stronger Families, which addresses family breakdown, child poverty and mental illness in one of the most deprived areas of the county.
A challenging time
Community energy has the potential to foster enhanced energy independence, local economic development and greater grid resilience. But the current landscape for these projects is particularly challenging. The effective ban on new onshore wind projects in England has hindered new developments in recent years and community groups often struggle to secure initial capital from financial providers. Since the removal of the feed-in tariff in 2019, the absence of subsidy schemes has added to the uncertainty of financial planning.
Many community energy organisations operate on a tight budget, often relying heavily on volunteers and affecting their capacity to navigate complex project management and legal frameworks.
Together, these factors undermine the long-term stability of the sector.
The government can help to address these hurdles by developing a consistent means to help fund community energy projects and establishing mechanisms that will give community groups confidence in their ability to generate revenue – such as increased subsidies. Furthermore, reinstating tax relief for community energy shares in schemes operated by Community Interest Companies, Co-operatives and Community Benefit Societies would help projects raise finance to develop projects.
With so much potential not only to help the UK meet its net zero targets, but to make a positive impact on society at a local level and help cement grassroots involvement in climate solutions, community energy projects need the support and stability to grow – and to inspire other projects to follow in their footsteps.
Amandine Tetot is Head of Energy and Project Finance at Triodos Bank UK
Oxa launches autonomous Ford E-Transit for van and minibus modes
I'd like to know where these are operating in the UK. The report is notably light on this. I wonder why?