Community energy schemes

Community energy is a model where local people come together to generate, own, and manage renewable energy projects. These projects are designed to provide environmental, social, and financial benefits to the local community rather than external shareholders.

Types of community energy

1. Community-owned generation

Groups raise funds (often through community share offers) to install solar panels on local schools or community buildings, or even build their own wind turbines.

  • Benefit: The income from selling the electricity is used to fund local community projects or provide “energy advice” services.

2. Local energy sharing

A model where neighbours share the electricity generated by local renewables.

  • Benefit: Allows people who cannot install their own solar panels (like renters) to access local green energy at a lower price.

3. Collective switching

Communities come together to negotiate a better energy deal from a supplier for all their members.

  • Benefit: Bulk-buying power leads to lower bills for everyone in the group.

Why community energy matters

  • Democratic ownership: Local people have a say in how their energy is produced and used.
  • Economic retention: Money spent on energy stays in the local community rather than going to large corporations.
  • Education and awareness: Projects often include educational programmes for schools and residents.
  • Fuel poverty relief: Many community energy groups use their profits to provide grants or insulation for low-income residents.

How to get involved

  1. Find a local group: Check the Community Energy England or Community Energy Scotland directories to see if there is already a group in your area.
  2. Invest in shares: Many groups offer “community shares” that provide a small annual return while funding new green energy projects.
  3. Start your own group: If there isn’t one near you, you can bring your neighbours together to start a new project. There is significant support available from organisations like Community Energy England.

The Ripple Effect: Some companies, like Ripple Energy, allow you to buy “shares” in large wind or solar farms across the UK. You then get a credit on your electricity bill based on how much your portion of the farm has generated.

Case Studies and Examples

  • Brighton Energy Co-op: Has installed over 3MW of solar across dozens of sites in Sussex.
  • Westmill Wind Farm: One of the first 100% community-owned wind farms in the UK.
  • Bath & West Community Energy: Uses its surplus to fund a “Health & Housing” programme to help people in fuel poverty.