Local authorities and community energy groups across the UK are being handed new opportunities to develop their own renewable energy projects, following the launch of a £30 million funding programme from Great British Energy.
The investment marks the first tranche of a wider commitment of up to £1 billion announced earlier this year. The initiative is designed to support more than 1,000 community and locally led clean energy schemes, ranging from solar panels on public buildings to village-owned wind farms and hydroelectric projects.
The funding will enable communities and councils to take greater control of their energy future, with ownership of projects remaining in local hands. Ministers say this approach will ensure the financial benefits of renewable energy stay within communities, helping reduce energy costs for public services while generating income that can be reinvested locally.
The announcement comes after a summer marked by record temperatures and extreme weather events, which have intensified concerns about climate change and the need to accelerate the transition away from fossil fuels.
By supporting locally owned renewable energy generation, the government hopes to empower communities to cut emissions, strengthen energy resilience and play a more active role in tackling climate change.
Prime Minister Andy Burnham said:
“I know many people are worried about climate change and feel like they’ve got no control over where their energy comes from, or how they can actually make a difference.
“Today we’re changing that by giving people power. Whether it’s solar panels on a local library or a community-owned wind farm, we’re letting people decide what clean energy projects they want and making sure they feel the benefits of the clean energy transition in their pockets too.”
Energy Secretary Miatta Fahnbulleh highlighted the role communities can play in responding to climate change. She said:
“All of us felt deep concern for our climate during the record-breaking temperatures we experienced this summer.
“Ahead of New York Climate week, we are putting power in the hands of people and places, so more communities can take action.
“Everyone deserves a stake in our energy future and through these local power projects, communities can reap the full benefits of clean energy – reducing emissions, cutting bills and reinvesting profits to benefit local areas, instead of big energy companies.”
Alongside direct support for local renewable energy schemes, the government has confirmed it will publish further details this autumn on plans to offer community energy groups ownership stakes in larger renewable developments.
The proposal is intended to strengthen partnerships between local communities and energy developers, ensuring a greater share of clean energy revenues remains in the areas where projects are built.
If implemented, the model would mirror successful approaches already used in countries such as Germany and Denmark, where community ownership has become a key part of the renewable energy landscape.
The announcement also coincides with progress on existing Great British Energy programmes. More than 150 renewable energy projects serving public buildings across England’s Mayoral Combined Authorities have now been completed and switched on.
According to ministers, these installations could generate up to £50 million in energy bill savings, allowing public sector organisations to redirect funding into frontline services and local priorities.
As pressure grows on councils and public services to reduce costs while meeting net-zero targets, the latest funding offers an opportunity for communities to take a direct stake in the UK's clean energy transition while delivering tangible local benefits.
Image credit: iStock
