- The UK government plans to invest up to £1bn in community-owned renewable energy schemes to strengthen public support for clean energy expansion.
- The programme, backed by GB Energy, aims to help communities own local solar, wind, and other green energy projects.
The UK government has pledged up to £1 billion to community-owned green energy projects to reduce resistance to renewable energy and grid upgrades. The funding aims to give local communities more control over clean energy generation and financial benefits.
Energy Secretary Ed Miliband said the investment will help democratise the energy system and strengthen local economic independence. He added that community ownership could also help reduce some local energy costs.
The government plans to channel the funding through GB Energy, the state-owned energy company. The programme will support community-owned solar, wind, hydro, and biomass projects across the UK. In addition, the funding will be shared with the governments of Scotland, Wales, and Northern Ireland.
GB Energy expects to support around 1,000 clean energy projects through grants and loans.
Furthermore, the scheme may allow communities and local councils to acquire equity stakes in large, privately owned renewable energy projects. Officials expect the funding to support solar installations on schools, churches, and public buildings. Meanwhile, some communities may use funding to develop small wind farms. In many cases, profits could fund social housing, subsidised transport, or community infrastructure projects.
However, some industry stakeholders noted that the funding falls below earlier expectations of £1 billion annually. Even so, GB Energy said the investment forms part of a broader multi-billion-pound clean energy strategy. The government hopes the initiative will reduce opposition to grid expansion and renewable energy infrastructure projects. In recent years, some communities have criticised large pylons, wind farms, solar parks, and battery projects, arguing that profits often go to private investors.
Political debates over net-zero policies continue to shape public perception of renewable energy projects. Therefore, ministers believe community ownership could help build local support for energy transition projects.
Although the government has not yet set specific capacity targets for community energy, GB Energy plans to publish detailed funding guidance later this year. Data from community energy organisations shows strong sector growth since 2017. Installed community energy capacity has increased by 81%. Similarly, solar and hydro capacity have more than doubled.
Membership in community energy companies has also increased significantly. Membership grew from about 30,000 people in 2017 to nearly 85,000 in 2024. Local governments have also increased investment in public energy projects. For example, Edinburgh City Council supported a solar cooperative installing panels on public buildings. Likewise, Orkney Islands Council secured £62 million to install six wind turbines near Kirkwall.
Industry experts welcomed the funding but stressed the need for grid upgrades. Some community projects cannot proceed because the grid infrastructure cannot absorb new electricity generation. Community energy leaders said the funding could transform local economies. In many rural areas, residents see renewable infrastructure but do not benefit financially from it. By contrast, community-owned projects create local income and improve energy resilience.
The funding signals the UK government’s push to combine clean energy expansion with local economic benefits. As a result, community ownership could become a key pillar of the country’s energy transition strategy.