Community stake in renewables should rise, MPs say

19 June 2026

Community-owned energy projects risk being left behind unless government takes urgent action to support them, according to a report by a parliamentary committee.

The Energy Security and Net Zero Committee said it was not convinced the government was on course to increase local and community energy generation from 411MW in 2025 to its target of 8GW by 2030, warning that an opportunity to strengthen public backing for the wider shift to clean power could be missed.

Its report said the current regulatory system places community schemes at a disadvantage compared with commercial developers. It argued that the cost and complexity of obtaining a supply licence, together with rules governing electricity retail markets, prevent smaller projects from offering cheaper locally generated power to nearby consumers.

The committee called for a series of reforms, including giving community energy projects priority in the grid connection queue and creating rules allowing them to sell electricity directly to local customers within six months.

It also urged the government to implement an existing right allowing communities to take a stake in nearby onshore and offshore renewable developments. The report said the minimum share offered by developers should rise from 5% to 20%.

Other recommendations included changing procurement rules to make it easier for local authorities and community energy groups to work together, introducing a new export guarantee to help projects secure finance and setting out clear responsibilities for organisations involved in meeting the 8GW target.

Bill Esterson, chair of the committee, said:

“Communities are an important part of the energy transition if the government is going to hit its targets. Across the UK, communities are putting in huge effort and resources to host large-scale renewable projects. But they face a system stacked against them, and too often they don’t share the benefits.

“This has real consequences for the UK’s clean energy targets and for our economy. Public support for the energy transition and local investment opportunities could be undermined, with the risk of energy bills staying higher than they need to for longer. 

“Our report is calling for urgent action through the new Energy Independence Bill. We’re asking the government to prioritise community energy projects for grid access, guarantee communities are offered the opportunity of a minimum 20% stake in local renewable energy development and make it easier for community generators to sell their energy locally.”

Read the report Get connected: How community energy can turbocharge the transition