Community energy is entering a new chapter in the UK.
With the publication of the government’s Local Power Plan and up to £1 billion of new public funding through Great British Energy, communities across the country will be able to own and control their own clean energy projects, cutting bills, generating income and keeping value local.
This represents the largest public investment in community energy in UK history, and a significant opportunity for towns, cities and local organisations to take control of their energy future.
What is community energy?
Community energy refers to locally owned and controlled energy projects, such as solar panels installed on community buildings like:
- Libraries and leisure centres
- Community halls and social clubs
- Places of worship
- Cooperative and not-for-profit spaces
Rather than profits flowing out of the area, revenue generated is reinvested locally supporting services, maintaining buildings and strengthening community resilience.
What the Local Power Plan means for communities
The Local Power Plan is designed to unlock community-led clean energy by addressing the barriers that have historically held projects back, including limited funding, lack of advice and complex delivery routes.
Backed by up to £1 billion in funding, the plan will support locally owned renewable generation, helping communities to:
- Reduce long-term energy costs
- Generate reliable local income
- Gain greater control over energy supply
- Build long-term community wealth
Ownership is central to the approach, giving people a direct stake in the infrastructure that powers their local area.
Proven success, untapped potential
Community ownership is already delivering results across the UK. From pioneering energy projects in Bristol, Oxfordshire, Wales and the Scottish islands, to the wider cooperative movement behind community-owned pubs, libraries and leisure centres, local ownership has shown its power to protect assets and strengthen places.
Internationally, the model is even more established. In Germany, around 40% of renewable energy capacity is citizen-owned, demonstrating what’s possible when communities are properly supported.
Until now, the UK’s community energy sector has lacked the scale of funding and coordination needed to reach its full potential. The Local Power Plan aims to change that.
Why this matters now
Energy costs remain a major pressure for households, community organisations and public buildings. At the same time, communities are looking for ways to create sustainable income, reduce reliance on external funding and play an active role in the transition to clean energy.
Community-owned energy offers a practical solution delivering lower bills today while building long-term local prosperity.
Turning opportunity into action
While funding is critical, successful community energy projects still require expert planning, technical insight and long-term strategy to deliver real value.
At Nero Energy, we support organisations and communities in understanding how local energy projects can work in practice from early feasibility and energy performance, through to cost reduction and long-term energy planning.
As investment in community energy scales up, the opportunity to build local wealth and power has never been greater.
