New £1bn plan to boost community ownership of renewables

10 February 2026

The UK government and state-owned Great British Energy are launching a major programme to boost community ownership of renewable energy, with up to £1 billion in funding set aside to support local solar, wind, hydro and biomass projects.

Grants and loans will be available to councils, community groups and individual investors, with profits from the projects intended to remain in local areas. Early allocations include £5 million for 53 community projects in England, and £21.5 million for initiatives across Scotland, Wales and Northern Ireland. Potential schemes include solar panels on schools, libraries, leisure centres and places of worship, as well as small-scale wind farms.

Great British Energy aims to back around 1,000 projects by 2030, giving communities the chance to develop local energy schemes or buy shares in larger renewable developments. Officials say the programme addresses barriers that have previously held back community energy in the UK, including high grid connection costs, regulatory complexity and limited technical support. The company will act as a “one-stop shop” for advice and funding, co-ordinating with councils, community groups and educational institutions to build local capacity.

Energy Secretary Ed Miliband said the initiative would “democratise the energy system” and ensure profits from clean energy flow to local communities rather than large energy companies. Ministers are also consulting on introducing mandatory shared ownership for future projects.

Community energy currently accounts for a small proportion of the UK’s renewable capacity, but evidence shows locally led schemes generate jobs, reinvest revenue locally, and foster civic pride. Officials hope the new investment will spur growth in community renewables, strengthen energy security, and build public support for wider clean energy infrastructure, including solar and onshore wind.

The programme forms part of a broader government drive to expand co-operatives and community investment schemes, aiming to give local areas greater control over wealth, energy, and sustainability initiatives.