The UK government has announced up to £1bn in funding for community-owned green energy projects, aiming to tackle growing opposition to renewable developments and grid upgrades. Energy Secretary Ed Miliband said the initiative would help democratise the energy system, boost local wealth, and potentially reduce energy bills.
The funding, overseen by state-owned GB Energy, will support solar, wind, hydro and biomass projects owned by local communities. The government claims this is the largest ever investment in community energy in the UK, with money shared among the devolved administrations. GB Energy hopes to back 1,000 projects through grants or loans, and allow communities to buy shares in larger private schemes.
Projects could include solar panels on public buildings, churches and schools, or small windfarms whose profits fund social housing, subsidised buses or village halls. The move comes amid criticism of new pylons, wind farms and solar arrays, with opponents accusing developers of industrialising the landscape and funnelling profits to private investors.
Community energy groups welcomed the funding but noted it falls short of the £1bn per year promised in Labour’s 2024 manifesto. GB Energy said the money is part of a broader multibillion-pound strategy, with new solar and onshore wind projects to be announced this week. No capacity targets have been published yet, but a detailed prospectus is expected later this year.
Data from community energy umbrella groups shows the sector has grown steadily since 2017, with installed capacity up 81% and membership rising from 30,000 to nearly 85,000. Local councils have also begun investing in public energy schemes, such as Edinburgh’s solar co-op and Orkney Islands’ £62m wind turbine project.
Zoe Holliday, chief executive of Community Energy Scotland, called the funding “truly transformative” but stressed the need for grid upgrades to carry the new power. “Many people in rural areas look at huge turbines on the horizon but don’t see positive benefits for the community,” she said.
