How community energy enables local authorities to engage and empower on net zero

Empowering people and cutting carbon and bills through community energy projects

Local authorities across the UK are increasingly recognising the transformative potential of community energy projects. On top of accelerating progress towards net zero, these initiatives can also deliver tangible social, economic, and environmental benefits at the local level.

What is community energy?

Although there is no single universal definition, it typically refers to energy projects that are owned, governed, or led by local communities. These projects can range from solar farms and wind turbines to energy efficiency schemes and low-carbon transport initiatives. The common thread is local involvement whether through ownership, governance, or active participation. This ensures that benefits such as reduced energy bills, job creation, and carbon savings are felt directly by the community.

Successful community energy projects typically have access to eight “key ingredients”:

• Appetite: Enthusiasm and commitment from local stakeholders
• Project management: Skilled leadership and coordination
• Community engagement: Active involvement and buy-in
• Expert advice: Technical, legal, and financial guidance
• Governance: Robust structures and processes
• Funding: Access to development and capital resources
• Opportunity: Viable sites, needs, or interests
• Delivery resource: Teams to support implementation

How big an impact can community energy have?

According to the Community Energy State of the Industry report for Great Britain, the impact of community energy in 2024 was substantial:

• Local Investment: £4.5 million of local community share investment
• Energy Savings: £1.86 million in bill savings
• Employment: Over 950 full time equivalent roles in Great Britain’s community energy sector
• Skills & Volunteering: Over 4,500 volunteers actively engaged in the sector, and 70+ organisations providing advice and guidance about the energy system and reducing energy use
• Carbon Reduction: Over 120,000 tonnes of CO₂ saved
• Social Cohesion: Over 200,000 members across hundreds of organisations

Local authorities are uniquely positioned to catalyse community energy initiatives. They can act as enablers who create conditions for community involvement; partners who work with citizens, businesses, and organisations; and trusted guides providing support to navigate complex challenges.

There are a number of ways that local authorities can provide support, ranging from knowledge management to opportunity provision to funding to relationship building. These include by educating communities and facilitating peer learning; integrating community energy into local strategies; convening stakeholders and championing initiatives; identifying sites and facilitating access; offering grants, loans, or match funding; initiating and supporting new projects; and sustaining collaboration for long-term impact.

The role that a local authority provides can be tailored to the needs and existing capacity of the local area, as well as the ambitions and resource available within the local authority itself.

Learnings from successful community energy projects

An example of a community energy project working with a local authority is the award-winning Swansea Community Energy & Enterprise Scheme (SCEES). SCEES developed and manages renewable energy assets designed to benefit local residents in deprived areas of Swansea, with any profits being reinvested into the local community.

The local authority initiated this development in 2015, and within a year the newly established community energy organisation was able to install solar PV panels on nine schools and one care home. These panels not only generate renewable and affordable electricity for their buildings but serve as a valuable educational resource for the community. Initially relying on a short-term loan from a community bank, the panels are now fully owned by SCEES and its members (with two-thirds based in the Swansea area), with members receiving an expected annual interest payment of ~6%. On top of this, profits are paid into a community benefit fund which is used to fund energy projects, skills and enterprise development locally.

Other notable community energy projects to check out include Plymouth Energy Community (PEC), Egni Solar PV Cooperative, Surrey Council’s Home Energy Advice Team, and West of England Mayoral Combined Authority’s Local Energy Scheme.

Guidance for local authorities

The Net Zero Living Programme in partnership with the Carbon Trust, has prepared step-by-step guidance for councils to develop their own community energy support programmes, enabling them to attract, initiate and support community energy activity in their local areas:

1. Define community energy locally: Tailor the definition to your area’s needs and ambitions.
2. Map stakeholders: Identify internal teams, community groups, public, private, and third sector partners, and local individuals.
3. Engage stakeholders: Use surveys, workshops, and direct outreach to understand needs and opportunities.
4. Assess needs and opportunities: Identify gaps and resources to inform your support programme.
5. Shape your programme: Develop specific actions – such as communications, learning networks, policy statements, funding schemes, and partnership models – aligned to local capacity and ambition.

Community energy offers a compelling pathway for local authorities to drive net zero ambitions while empowering residents and businesses. By adopting a structured, locally adapted approach – grounded in best practice and real-world examples – councils can unlock the full potential of community energy for their area.

To further explore the key ingredients for community energy project success, potential roles for local authorities, and a range of case studies, and to start developing your own local authority community energy support programme, using our step-by-step guidance: visit the Net Zero Living Programme page on supporting community energy locally and explore the full reports from the Carbon Trust.