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Energy at home

Community energy explained

Community energy is all about people coming together, taking action and using local resources to reduce, manage or generate their own energy.

Are there public buildings in your community like schools or sports clubs that could have solar panels on the roof? Or do you have a natural resource nearby, like a river or a windy hilltop? You could use those to generate electricity with a hydroelectricity project or a wind turbine.

A community energy project can happen anywhere, from remote villages to city neighbourhoods. And it doesn’t have to involve large-scale renewable energy installations, either. For example, you could run an awareness campaign about energy efficiency to help people in your local area.

What are the benefits of community energy?

Community energy has huge potential in reducing the nation’s carbon footprint and reaching net zero. Community-owned renewable energy projects can help reduce the UK’s reliance on fossil fuels by generating clean, low carbon electricity.

One of the best things about community energy projects is that, because they’re owned by the community, you feel the benefits locally. Community benefits include:

  • Creating a connection between the community and their renewable energy project, so they feel empowered.
  • Inspiring the community to work together and solve other local issues, like improving transport connections.
  • Taking positive action to tackle the climate emergency, showing everyone that positive change is possible.
  • Lower energy bills and more income to fund local projects.

How do I get involved in a community energy project?

Are you ready to start using the power of your community to experience the benefits of generating your own energy? You can get support and advice on:

  • setting up groups
  • conducting feasibility studies
  • financing projects

Depending on where you are, you can find more information about community energy projects in your area from these organisations and schemes:

For more information, see how how we can support your community energy project.

Examples of community energy projects

There are many rural areas that have wind turbine and hydroelectricity projects. Threse let more remote communities make the most of their natural resources to become more self-sufficient.

But more communities in urban areas are developing renewable energy projects too. For example, by putting solar panels on the rooftops of public buildings to improve their neighbourhood.

Here are some examples from across Great Britain of community energy projects we’ve helped with through different programmes.

A wind turbine in Wales against a blue sky with a few clouds

Wind turbines across Wales

The Welsh Government Energy Service has supported community groups in PembrokeshireCarmarthenshire and Neath Port Talbot to install wind turbines. These provide enough clean energy to power thousands of homes every year.

Support involved conducting feasibility studies and helping with buying land and planning permission.

The Welsh Government Energy Service also provided support with accessing the (now closed) Feed-in Tariff Scheme. This means the communities get a secure income from generating renewable electricity – income that can be reinvested in other local projects.

6,000 solar panels in Newport

Working with community organisation Egni Co-op, the Welsh Government Energy Service supported the installation of 6,000 solar panels on the rooftops of public buildings across Newport. These included schools, care homes and a council .

These solar panels have the potential to lower the council’s carbon footprint by 348 tonnes of CO2 a year.

Solar panels being installed on the roof od a school in Scotland, surrounded by scaffolding.

Solar panels at an Edinburgh school

The Community and Renewable Energy Scheme (CARES) supported Friends of Duddingston Primary School to install 30KW of rooftop solar panels, reducing the school’s energy bills and its carbon footprint.

CARES provided funding through a development loan and offered support with accessing the Feed-in Tariff Scheme. This let the school sell extra energy to the grid and generate £40,000 in extra income over 25 years.

This income will be used to benefit the school and the wider community, improving the school grounds and enabling pupils to take part in activities. Isla, P6, said: “I’m really happy we are doing something at school that will make an actual difference.”

Greener community centre in Fife

With support from CARES, the development trust Greener Kirkcaldy kitted out their community centre with 19.2 KW of rooftop solar panels. It also installed a battery energy storage system and an electric vehicle charging point.

The project cuts CO2 emissions by 6.4 tonnes and saves £1,850 in energy bills every year. And with 12,000 annual visitors to the centre’s cookery school, café and events space, it shows the power of renewable energy to the community.

Wind turbine in the Highlands

CARES provided funding and support to the Coigach Community Development Company in the installation of a 500kw wind turbine. Through the Feed-in Tariff Scheme, it has generated around £500,000 in three years for community projects

During the Covid-19 pandemic, this income was used to provide immediate financial support for local families, whose tourism livelihoods had disappeared overnight.

Ofgem Energy Redress Scheme

We run the Ofgem Energy Redress Scheme in England, Scotland and Wales. The programme collects funds from companies that have breached energy rules and redistributes them to charities and community groups.

Part of the programme is the Just Transition Fund that’s dedicated to supporting community energy projects. So far, this fund has distributed £3.5 million in grants to develop 110 megawatts (MW) of renewable energy capacity.

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Last updated: 16 July 2025