Community Energy

There is no doubt that communities are key to decarbonising the UK economy, and I am glad that the Government is supportive of community energy. 

Community energy projects can have real benefits for the communities in which they are based, and I welcome that the Government is keen to ensure that they deliver value for money for consumers. That is why the Government has launched a new £10 million community energy fund, which expands on the success of the previous rural community energy fund, to enable both rural and urban communities across England to access grant funding to develop local renewable energy projects for investment.

The Government’s approach to community energy is set out in the Net Zero Strategy. This includes running the Community Energy Contact Group to provide a dedicated forum to discuss the role that community energy can play in the delivery of net zero with the sector. The approach also includes support for community energy projects from Ofgem, which welcomes applications from the sector to the Industry Voluntary Redress Scheme. 

Alongside our proposed fund, Ministers are committing to publishing an annual report to Parliament and to consulting on the barriers the sector faces when developing projects.

(January 2024)