Community energy projects: Empowering local communities in the UK.
Community energy projects in the UK have emerged as a powerful catalyst for local collaboration and support. These initiatives, often driven by passionate community members and charitable organisations, serve the local area with a range of helpful energy services - from energy efficiency advice to renewable electricity generation. Each project contributes to a range of vital nationwide goals, such as aiding the transition to renewable energy and reducing fuel poverty. They play an important part in supporting government efforts by transforming targeted neighbourhoods with impactful energy support tailored to their needs. As the UK continues its transition to renewable energy and a net zero future, these grassroots efforts are leading by example and demonstrating the measurable benefit of their strategies on real communities.
What is a community energy project?
Small yet powerful - a community energy project is any energy initiative that is owned (or part owned) by a local community organisation. They are often non-profit projects, where any profits made are invested back into the initiative or other local community projects.
Community energy projects fall broadly into two categories: energy generation and demand reduction.?
Energy generation projects invest in various ways to generate electricity or heat for a local community. They focus on renewable energy sources to improve energy security and help decarbonise local energy in support of UK Net Zero. These projects may include:
- Wind or solar farms. Large scale renewable electricity generation projects with significant up-front investment1. Usually, these large scale projects sell the power back to the grid, directly supporting the UK transition to renewable electricity. However, some projects, such as Ripple Energy, allow local households to own a share of their wind turbine or solar panels within the project and benefit directly from the renewable power generated. Wind and solar electricity generation produce little to no carbon emissions, making them clean energy sources too - helping decarbonise the grid by relying less on fossil fuel generated power.
- Solar panel roof installations. Small scale renewable electricity generation projects installing individual solar panel arrays on homes within the community2. These targeted investments help individual households transition a significant amount of their electricity use to renewable sources. Plus, it helps to lower the household’s energy bills by generating their own electricity - reducing the amount of power they need to draw from the grid. This is a popular initiative as it is more affordable than a large-scale project, and has an immediate direct benefit to members of the local community.
- Community heat generation. Large scale heat generation projects with high upfront costs3. They can range in size, providing heat to multiple buildings from one central source. Biomass generators and air or ground source heat pumps are common heat generators in community projects. Heat pumps in particular produce very low emissions compared to gas boilers?. Community heat generation could be used to heat residential areas, businesses, and/or important local services (such as hospitals and schools).
- Home heating upgrades. Upgrading inefficient home heating in local households with efficient renewable alternatives, such as air source heat pumps?. Much like solar roof installations, this targeted approach is more affordable than large scale projects with an immediate benefit for local community members who receive the installation. However, heat generation technology is generally more expensive than electricity generation tech and so may not be as widely available from community projects.
Demand reduction projects support community members by helping them to reduce their individual energy use. This helps to reduce household energy bills, but also improves UK energy security by reducing the demand on the grid - particularly at peak times when nationwide energy use is high. At a national level, reducing demand also means we are more likely to avoid needing to rely on carbon intensive backup power generation - such as from coal power plants. These community projects may include:
- Retrofitting local homes to improve energy efficiency.
- Running energy saving workshops and cafes.
- Providing energy monitoring for local households.
- Offering building assessments to identify opportunities to improve home energy efficiency.
- Advice and support on installing renewable energy tech.
- Funding advice for home energy improvements.
- Fuel poverty reduction through grants and loans.
- Energy switching advice to help households make informed decisions about their energy supply.
Making a difference to local communities.
Community energy projects may be small, but they can have a big impact. Take a look at some of the most recent published highlights from Community Energy England, Scotland, and Wales’ State of the Sector survey 2022, to see the real power of collaboration.
- Renewable electricity. There is 331 MW of community owned renewable electricity generation in the UK. This generates 506 GWh of electricity a year - enough to power 174,000 UK homes. Better yet, this community generated renewable electricity avoids an estimated 143,000 tCO2e annually. The majority of community owned generation comes from small (5-50kW) solar panel roof installations.?
- Heat generation. There is 4.7 MW of community owned heat generation in the UK. Biomass and heat pumps make up the majority of community heat generators, improving access to renewable heat sources.
- Low carbon transport (LCT). Just over half of low carbon transport community projects involved investing in electric vehicles or EV charging stations, supporting the transition to EVs ahead of the 2035 government ban on the sale of new petrol and diesel vehicles. Other LCT initiatives include providing e-bikes and car sharing networks.
- Retrofitting UK housing stock. Over the year, ï¿¡510,160 was spent providing energy efficient building improvements, benefitting more than 20,000 UK households. The most common improvements were switching to LED lighting, draught proofing and insulating homes.
- Energy saving. ï¿¡3.35 million was saved on UK energy bills thanks to energy efficiency interventions.
- Financial support. Community energy organisations provided financial support to over 4,500 people over the year, with energy efficiency grants totalling ï¿¡470,000. These grants helped to alleviate fuel poverty through fuel vouchers, contributed to the cost of energy efficient home improvements, and funded the training of local energy champions.
- Supporting local economies. On average around 70% of spending from community energy organisations was spent locally. This helps to boost the local economy and support local businesses.
How to get involved.
There are more than 300 community energy organisations across the UK2. If you would like to support a project local to you in England, check out the National Map of community organisations from Community Energy England (CEE). For Welsh residents, you can view the Members Map from Community Energy Wales. And for those living in Scotland, there is the Project Portfolio from Community Energy Scotland.
In the most recent State of the Sector survey, community organisations reported that more time and capacity would be the most helpful support they could get for their project. So if you have a passion for community collaboration, renewable energy, or supporting vulnerable households, reach out and get involved. Your time is the most valuable asset local projects can receive.?
Volunteers are a crucial part of many community energy projects - but you can also keep an eye out for paid roles. In 2021, community energy projects created the equivalent of 183 full-time jobs3. Try checking local job boards for the latest opportunities in your area, reaching out to specific projects you’re interested in, and following organisations here on LinkedIn.
Can’t find a local project or have a brand new idea? You can set up your own community energy project. Take a look at CEE’s guide to getting started with community energy for a helping hand with everything from planning your business model to running an organisation. Plus, you can join their network of members to connect with like-minded individuals and organisations for advice and support.
Financial support for community energy projects.
The government recognises the importance of community projects in supporting Net Zero 2050, improving energy security, and providing crucial help to reduce fuel poverty across the UK. If you run a community energy organisation or are thinking of getting started, you may be eligible for government funding.?
The Community Energy Fund was set up in Autumn 2023 to provide grants for community groups and eligible third party organisations in England. ￡10 million of funding was allocated at the scheme’s launch to help kickstart local projects. Applications must be made through your local Net Zero Hub. Community Energy England has collected countrywide guidance and application forms for each Net Zero Hub, including the application deadlines for each region. Round 2 is currently open for most regions, but deadlines may be approaching soon in your area - so it’s a good idea to act fast.
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You can also find the latest information on additional funding opportunities for community organisations in England on the CEE funding hub.
For help with funding in Wales, check out the finance hub on Community Energy Wales. There you can find current funding opportunities available to organisations across Wales.?
If you are in Scotland, you can contact Community Energy Scotland directly for help identifying eligible funding opportunities and support throughout the funding application process.
Supporting communities at E.ON Next.
As part of the wider E.ON group, we are delighted to have entered a strategic energy partnership with Coventry City Council. This 15-25 year partnership is the first of its kind in the UK, and will involve multiple projects to benefit local residents and businesses, and support Coventry’s net zero goals. Our initial planned projects include:
- Creating a 30 MW solar farm?.?
- Bringing solar into schools?.?
- Decarbonising Council depots and fleets?.
- Insulating thousands of local homes?.
We hope to deliver even more projects to the community through this strategic partnership. Our aim is to help retrofit commercial and residential properties in the city, and expand the electric vehicle infrastructure to support the transition to EVs. Learn more about our strategic energy partnership with Coventry.
It’s not just Coventry that we’ve partnered up with. The existing E.ON partnership with Nottingham’s Queen’s Medical Centre (QMC) has been extended with a 15-year energy efficiency programme. E.ON plans to install an innovative onsite heating and cooling system using geothermal heating and high efficiency heat pumps. The heating network is expected to reduce carbon emissions by around 10,000 tonnes a year - the equivalent of taking around 2,200 cars off the road?. Plus, work has already begun replacing up to 18,000 m2 of windows with double glazing, helping to reduce heat waste and maximise the benefits of the new heating system. The medical centre is a vital pillar of the local community, and it is our hope that through our partnership we can improve the comfort of patients, visitors, and staff, whilst also reducing the carbon footprint of the centre.
We cannot underestimate the power of community. The many incredible community energy projects across the UK demonstrate how we can all make an impact when we work together towards a common goal. Investing in local projects, whether it’s your time, money, or expertise, makes a meaningful difference in the lives of the people around you. In many ways, these local energy projects have the most visible benefits to us, by helping the very community of people you share your life with every day. Just one of the reasons they are such an immensely rewarding cause to take part in. Take pride in your community and build towards a better energy future for everyone by getting involved with your local community energy projects.