UK Government Announces £1 Billion Investment to Boost Community Clean Energy Schemes
Major funding initiative forms part of the Local Power Plan
The UK Government, together with the publicly owned Great British Energy (GBE), has announced a landmark £1 billion investment aimed at transforming community clean energy across the country. This major funding initiative forms part of the newly published Local Power Plan, designed to enable communities to own, develop and directly benefit from renewable energy projects such as solar installations on libraries, leisure centres, schools and places of worship, as well as small‑scale hydro schemes and other locally led renewables.
At the heart of the plan is a commitment to empower local people to take control of their energy generation. The investment represents the largest public funding package for community energy in British history, demonstrating a strategic shift towards decentralised, community-owned clean power. The UK Government and GBE aim to support around 1,000 locally owned clean energy projects by 2030, helping to cut energy bills, boost energy security and ensure that profits remain within communities rather than leaving the local economy.
GBE has already laid important groundwork, investing £5 million in 53 community energy projects in England and delivering £16 million to mayoral authorities for renewable installations on public buildings such as leisure centres and fire stations. A further £21.5 million has been allocated to community and public sector energy projects across Scotland, Wales and Northern Ireland, highlighting the programme’s UK‑wide reach.
The Local Power Plan aims not only to increase the volume of clean energy projects, but also to establish more shared ownership models, enabling communities to buy stakes in renewable energy developments and build long-term wealth. The plan also outlines targeted support to overcome long‑standing sector barriers, including high grid-connection costs, limited technical capacity and challenges securing early‑stage finance.
The funding will be delivered through a combination of grants, loans, capacity-building programmes and business model development, supporting organisations at every stage, from feasibility studies to project construction and long‑term management. GBE will work closely with local authorities, community groups and devolved governments across the UK to ensure tailored regional support. This includes partnerships with combined authorities in England and ongoing collaboration with the governments of Scotland, Wales and Northern Ireland to expand community energy participation and ownership opportunities nationwide.
The investment also aligns with the UK Government’s wider Pride in Place agenda, which focuses on revitalising local areas, strengthening communities and supporting local institutions. Renewable projects funded through the initiative are expected to generate new income streams for community centres, libraries, sports clubs and social hubs, helping to stabilise vital community assets while accelerating the shift to a cleaner, fairer energy system. As GBE emphasises, local and community energy will play a central role in building a more secure, affordable and publicly accountable energy future for the UK.
From feasibility‑stage grants to construction‑phase finance and community ownership schemes, GrantFinder will ensure that councils, community groups and local organisations can access timely information to successfully secure funding and deliver clean energy projects in their area.
