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Government Announces £1bn Boost for Community Energy

UK Government Pledges to Spend £1billion on Community Energy Schemes in Biggest Public Investment Ever Made 

On Tuesday 10th February, the UK government announced in their Local Power Plan that it is pledging £1 billion in new funding to Community Energy. This is the biggest investment in community energy history and is set to have a huge impact in supporting local communities and driving change in the energy sector. 

We take you through who Community Energy are, what they do, and how this funding will support vital work across the country. 

 

What is Community Energy? 

Community Energy is a nationwide movement made up of community-led projects that give local people the opportunity to own, control, and directly benefit from local energy projects. These projects typically focus on renewable energy generation, such as solar panels, wind turbines, and other low-carbon infrastructure. 

Unlike traditional energy providers, Community Energy organisations operate on a not-for-profit basis. They are run for the benefit of local residents, and they often work in partnership with local authorities and housing associations to develop and manage projects. 

The movement has grown over the last few decades, when the first Community Energy organisation was established in 1997. Today it is comprised of over 600 organisations across the country, all playing a vital role in the transition to renewable energy whilst keeping ownership and decision-making power at a local level. 

To date, over 411 MW of community owned renewable assets have been introduced to the UK enabling significant contribution to local economies. Approximately £1.86 million has been invested directly into poverty reduction initiatives, helping to combat fuel poverty and support vulnerable communities.  

By enabling communities to generate and manage their own energy and infrastructure, Community Energy lets residents take control of their energy and contributes to the country’s wider sustainability goals. 

What Does This New Funding Mean for Community Energy England? 

The government’s £1 billion commitment is the biggest public investment in community energy in UK history; a landmark moment for Community Energy England and the wider movement. For years, community-led projects have operated with limited resources and significant structural barriers, but this funding comes as a welcome uplift.  

The funding is expected to help cut energy bills whilst generating revenue for local institutions, including community centres, social clubs, libraries, leisure centres, miners’ welfare clubs and places of worship. By installing locally owned renewable energy systems, such as solar panels, wind turbines and heat pumps, these buildings can reduce their operating costs and reinvest savings directly back into their services. 

The £1 billion Local Power Plan is designed to address the barriers that have historically held community energy projects back. These challenges include lack of funding and expertise as well as complex regulatory requirements. 

By providing structured funding and support, the government can boost projects that may have previously been halted. 

Energy Secretary Ed Miliband said: 

“Local and community energy is at the heart of our government’s vision. This government is saying to every local community: we want you to be able to own and control clean energy so the profits flow into your community not simply out to the big energy companies.” 

The UK appears to be following the lead of European models of citizen-led energy. In Germany, for example, around two-fifths of installed renewable energy capacity is citizen-owned, turning profits away from large energy corporations and back into regional economies. 

If the UK replicates this, it could fundamentally reshape how energy infrastructure is financed and owned. For Community Energy organisations, this represents more than funding, it also signals a shift in the future of Britain’s clean energy. 

Ennovus’ Partnership with Community Energy England 

At Ennovus, we’re proud to be a Community Energy England Partner Member, working alongside a national network of organisations committed to supporting the growth of locally owned clean energy. 

As a recommended consultancy, we support community groups and local organisations in turning energy ideas into deliverable, viable projects. From early-stage feasibility assessments to business case development, funding support and turnkey project development. 

Our partnership with Community Energy is built on shared values of collaboration and sustainability. Community energy is not just about installing solar panels or generating renewable power, it’s about empowering people and ensuring the transition to net zero works for everyone. 

Ennovus’ Project Engineer, James Towell says: 

“Ennovus welcomes the UK government’s Local Power Plan announcement, which marks a major step forward for the community energy sector. The commitment to expanding community‑owned renewables in every part of the country will empower local people to take control of their energy future. The benefits of community energy are clear — delivering a fair and inclusive transition as the UK moves away from fossil fuels while keeping economic and social value within communities. Ennovus is proud to support community energy groups at every stage of their journey, from early scoping to full project delivery, offering clear advice, robust technical expertise and a genuinely supportive, partnership‑led approach” 

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