What is community energy?

Community energy is about people and communities taking democratic control over our energy future. This can mean developing new renewable energy infrastructure owned by us, making our buildings more energy efficient, or working together to change the way we use energy.  

When an energy system runs entirely on fossil fuels, it’s controlled by a few big corporations which extract and sell those fuels for profit. We rely on them to power our daily lives, but we have no say and no connection to where our energy comes from. 

Community energy turns all that on its head, bringing local communities together to build their own solutions for a clean and affordable energy system. When our energy comes from the sun and the wind, we can harness that energy everywhere, and use it locally. Community energy groups all over the UK are establishing new solar, wind and other renewable energy projects, raising money through community share offers, which anyone can invest in. Investors get a modest return, and any surplus is used to benefit the community – for example by funding energy efficiency improvements or community projects. 

Community energy companies are not for profit and are run by local people.  

In 2024, community energy projects in England generated enough energy to power 213,000 homes, and contributed £24.5 million to local economies through their expenditure and community benefit funds. 

For a more detailed picture of community energy in England today, check out Community Energy England’s State of the Sector report.