Community energy projects are increasingly being recognised by local authorities across the UK as a powerful tool to advance net zero ambitions while delivering tangible social, economic, and environmental benefits. Supported by Innovate UK’s Net Zero Living Programme, the Carbon Trust highlights how locally led energy initiatives can reduce carbon emissions, lower energy bills, and strengthen community engagement in the energy transition.
Community energy typically refers to projects that are owned, governed, or led by local communities, spanning activities such as renewable energy generation, energy efficiency improvements, and low-carbon transport solutions. By involving communities directly in decision-making and delivery, these initiatives ensure that benefits such as job creation, cost savings, and emissions reductions are retained locally and shared more equitably.
Successful community energy projects tend to rely on several core factors, including strong local appetite, effective project management, active community engagement, access to expert advice, robust governance, sufficient funding, viable opportunities, and dedicated delivery resources. When these elements are in place, community energy schemes can scale effectively and deliver long-term impact.
Evidence from across Great Britain demonstrates the significant contribution of community energy in 2024, including millions of pounds in local investment and energy bill savings, the creation of hundreds of jobs, extensive volunteer engagement, substantial carbon reductions, and stronger social cohesion through widespread community participation.
Local authorities are uniquely positioned to catalyse these initiatives by acting as enablers, partners, and trusted guides. Their support can range from integrating community energy into local strategies and convening stakeholders, to identifying suitable sites, providing funding mechanisms, and sustaining long-term collaboration. The specific role played by each authority can be adapted to local capacity, resources, and ambitions.
Practical examples illustrate the impact of this approach, such as the Swansea Community Energy & Enterprise Scheme, which has delivered renewable energy installations on public buildings while reinvesting profits into local development. Initiated with local authority support, the scheme demonstrates how early public sector involvement can unlock community ownership, financial sustainability, and long-term social benefit.
To support wider adoption, the Net Zero Living Programme and the Carbon Trust have developed step-by-step guidance to help councils design and implement community energy support programmes. By defining community energy locally, mapping and engaging stakeholders, assessing needs, and shaping tailored interventions, local authorities can unlock the full potential of community energy as a driver of net zero progress and community empowerment.
