Historic Funding Boost for Community Energy Announced by UK Government

Image Credit: UK Government/Flickr

Last week the UK Government announced its plans to deliver the biggest ever public investment in community energy to cut bills, create revenue and support jobs in local communities.  

Allocating £1 billion, communities will be given the autonomy to develop clean energy projects that they will own and control, generating funds for local people and redirecting profits from large energy companies.  

As part of the Local Power Plan, which was announced last week, community centres, places of worship and social clubs will all have the opportunity to submit plans to be considered by Great British Energy (GBE) working with the Department for Energy Security and Net Zero (DESNZ). 

Complementing the Government’s Pride in Place agenda, it is hoped that through devolving power to local communities, people will have a greater sense of ownership and a stake in the places they live, generating pride, respect and local prosperity.  

Taking influence from other countries that already have this process in place, such as Germany, the model is proven to work. Backed by £1 billion investment, over 1,000 clean energy projects will be supported by 2030.  

Unleashing the untapped resources and enthusiasm of local communities, the Local Power Plan has the potential to be transformative for areas that for many years have been significantly underinvested.  

With £5 billion also allocated for the Government’s Pride in Place programme, which was recently extended, 284 communities will take control of £20m each over the next decade. 

As a champion for former industrial communities throughout the UK, we hope to see this investment making the positive impact on those that have for many years been left in the shadows.  

Founder and CEO of TSC, Kate Hutchinson, comments: “It is no secret that we use our growing platform to champion former industrial communities throughout the UK. After all, the clean energy sector is a perfect opportunity to turn the fortunes of these communities around.  

“The announcement about the Local Power Plan is a huge step in the right direction. Not only does it provide investment for some of the most deprived communities in the country, it also gives them the chance to generate ongoing wealth through community energy projects.  

“With support and guidance from Government and complemented by the Pride in Places initiative, communities will be given the autonomy to take control and to showcase what is possible when the right infrastructure is in place. 

“In our experience, these towns and villages simply want an opportunity and the chance to reinvent themselves. They are ready to make a positive difference. They have the passion and the willingness to develop innovative ideas, backed by the investment they will need, they can now put this into practice allowing them to thrive.”  

By 203o it is hoped that every community in the UK should have the opportunity to own a local energy project. Developed through a mix of grants, loans, direct investment and hands-on support, Greater British Energy will allocate up to £1 billion. 

Targeting underserved areas, further schemes are set to launch later in the year. The plan has four pillars; direct funding and finance for projects; capacity and capacity building; build repeatable business models and unlock wider investment; and policy and regulatory changes.  

Throughout 2026, shared ownership guidance and templates will be shared with the first partnerships announced and the first grant scheme launched. In summer, pilot projects will begin before Great British Energy’s local product portfolio is launched.  

An Expression of Interest process will be run by Great British Energy giving communities and local government the opportunity to share ideas and needs.  

Energy Secretary Ed Miliband said: “Britain’s drive for clean energy is about answering the call for a different kind of economy that works for the many, not just the wealthy and powerful in our society. Local and community energy is at the heart of our government’s vision.   

“With the biggest ever investment in community energy in Britain’s history, this government is saying to every local community: we want you to be able to own and control clean energy so the profits flow into your community not simply out to the big energy companies.  

“By giving local people the chance to take control of their energy, this government is making a fundamental choice to transfer wealth and power back to communities across Britain.” 

For further information about the Local Power Plan, please visit: Local Power Plan. 

Energy policy and community energy projects will be topics at our upcoming events, including the Clean Industrial Growth Investment Summit and Clean Energy 2026.