Unlocking community energy at scale

Energy Security and Net Zero Committee Open Inquiry
Opened: 11 Nov 2024 Parliament page
The Committee has launched an inquiry into community energy. The Committee aims to: identify potential solutions to the financial and regulatory barriers facing community energy projects, including how to establish local supply; consider the role of the Local Power Plan in supporting community energy; and assess how reforms to the … Read more
11 Recommendations
13 Conclusions
1 Report
5 Oral sessions
5 Events
Activity timeline 6 events
28 Jan
2026
Oral evidence
12 Nov
2025
Oral evidence
22 Oct
2025
Oral evidence
2 Apr
2025
Oral evidence
12 Mar
2025
Oral evidence
Oral evidence sessions 5 sessions
Oral evidence
Emma Floyd · Department for Energy Security and Net Zero Helen Seagrave · Great British Energy Marzia Zafar · Ofgem Michael Shanks MP · Department for Energy Security and Net Zero Victoria Moxham · Elexon
Oral evidence
Councillor Emily O'Brien · Lewes District Council and UK100 Climate Leadership Academy Graduate Dan Stone · Centre for Sustainable Energy Eleanor Radcliffe · Carbon Co-op Jenny Wigley, KC · Landmark Chambers Robbie Calvert · Royal Town Planning Institute (RTPI) Tanuja Pandit · Power Up North London
Oral evidence
Alex Lockton · Empowered Dr Calum MacDonald · Point and Sandwick Trust Dr Mairi Brookes · Low Carbon Hub Finley Becks-Phelps · Nadara Mark Askew · Southern and Scottish Electricity Networks - Distribution Matt Magill · National Energy System Operator (NESO) Sarah Jeffery · National Grid Electricity Distribution
Oral evidence
Afsheen Kabir Rashid MBE · Repowering London Alistair Macpherson · Plymouth Energy Community Benedict Ferguson · Community Energy Wales/Ynni Cymunedol Cymru Dr Mary Gillie · Energy Local Pete Capener MBE · Community Energy England Stephen Harris · OVO Energy Steve Shaw · Power for People
Oral evidence
Helen Martin · Bristol Energy Cooperative Hugh Goulbourne · CO2Sense Jake Burnyeat · Communities for Renewables Louise Marix Evans · Rossendale Valley Energy Marna McMillin · Energy4All Matthew Clayton · Thrive Renewables Zoë Holliday · Community Energy Scotland
Recommendations & Conclusions
24 results
1 Conclusion
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The lack of a pricing mechanism that makes community energy projects financially viable is one...
The lack of a pricing mechanism that makes community energy projects financially viable is one of the biggest barriers to the future growth of the sector. The closure of the Feed-in Tariff significantly limited the opportunities for community energy organisations … Read more
Department for Energy Security and Net Zero
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2 Conclusion
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For the Government to achieve its ambition for community- scale rooftop solar in the achievement...
For the Government to achieve its ambition for community- scale rooftop solar in the achievement of the UK’s energy targets, it is essential to develop a stable price mechanism that makes selling electricity to the grid financially viable. Reliance on … Read more
Department for Energy Security and Net Zero
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3 Conclusion
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Reliance on Power Purchase Agreements demonstrates the barrier that financial viability currently poses to the...
Reliance on Power Purchase Agreements demonstrates the barrier that financial viability currently poses to the growth of community rooftop solar. For the Government to achieve its ambition for community-scale rooftop solar in the achievement of the UK’s energy targets, it … Read more
Department for Energy Security and Net Zero
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4 Recommendation
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The Government should, as a matter of urgency, provide clearer guidance on the application of...
The Government should, as a matter of urgency, provide clearer guidance on the application of procurement rules, and if necessary, reform the rules themselves, to make it easier for local authorities and community energy 45 organisations to work together and … Read more
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5 Recommendation
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The Government should replace the Smart Export Guarantee with a Community Energy Export Guarantee, with...
The Government should replace the Smart Export Guarantee with a Community Energy Export Guarantee, with a negotiated floor price guaranteed over 15–20 years and underwritten by the Government. (Recommendation, Paragraph 22)
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6 Recommendation
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The Government must ringfence a defined proportion of the £1bn Local Power Plan funding specifically...
The Government must ringfence a defined proportion of the £1bn Local Power Plan funding specifically for community-owned (not merely “local”) projects, with a published GW sub-target. (Recommendation, Paragraph 23) Local supply
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7 Conclusion
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Complex market rules are a major impediment to scaling up local supply and local energy...
Complex market rules are a major impediment to scaling up local supply and local energy markets. The supply regime cost and complexity of obtaining a supply license are prohibitive for small community projects and licence exemption rules are not fit … Read more
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8 Recommendation
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We recommend that the Government produces, within six months, a regulatory framework to allow community...
We recommend that the Government produces, within six months, a regulatory framework to allow community energy generators to sell electricity to local consumers. Modification of P441 is a good step to clarify rules and uncertainties and should be approved by … Read more
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9 Recommendation
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If P441 is not approved and implemented by the end of summer 2026, the Government...
If P441 is not approved and implemented by the end of summer 2026, the Government should bring forward legislation equivalent to the Local Electricity Bill to establish a proportionate local supply licence. (Recommendation, Paragraph 32) 46 Grid connections Read more
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10 Conclusion
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The grid connection reforms process has not benefitted community energy.
The grid connection reforms process has not benefitted community energy. The regulatory framework disproportionately disadvantages community energy projects compared to commercial developers and jeopardises their financial viability. The lack of a regulatory definition, ownership agnosticism and the absence of clear … Read more
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11 Conclusion
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The lack of progress towards the delivery of the 8GW of community energy by 2030...
The lack of progress towards the delivery of the 8GW of community energy by 2030 highlights the need for the Government to reduce the disproportionately high costs and long delays community energy projects face when seeking grid connections. (Conclusion, Paragraph … Read more
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12 Recommendation
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The 8 GW target explicitly recognises the central role of community energy in the Clean...
The 8 GW target explicitly recognises the central role of community energy in the Clean Power Mission. A commitment to delivering it requires shifting away from ownership agnosticism to grant community energy a special status and help community energy projects … Read more
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13 Conclusion
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The Government and Ofgem must agree a regulatory definition and clear criteria for community energy...
The Government and Ofgem must agree a regulatory definition and clear criteria for community energy projects to allow them to be differentiated from commercial developers. (Recommendation, Paragraph 50) Planning
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14 Conclusion
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The National Planning Policy Framework needs to be reviewed to enable local authorities and planners...
The National Planning Policy Framework needs to be reviewed to enable local authorities and planners to differentiate community energy projects from commercial developers in planning application processes. There is a need for more clarity on what projects should be prioritised … Read more
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15 Recommendation
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The Government must, this year, alter the National Planning Policy Framework to allow for community...
The Government must, this year, alter the National Planning Policy Framework to allow for community benefits from community energy to be material considerations in planning application processes. The current NPPF’s definition of community-led development would be a good starting point … Read more
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16 Recommendation
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Energy planning is too important to hope that local planners have the capacity and knowledge...
Energy planning is too important to hope that local planners have the capacity and knowledge to deliver to national targets. The Department for Energy Security and Net Zero must ensure stronger coordination between NESO high-level spatial planning strategies and local … Read more
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17 Recommendation
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The Government should legislate to make community ownership (as opposed to community benefit payments) as...
The Government should legislate to make community ownership (as opposed to community benefit payments) as an express material consideration, distinguishing equity stakes from donations. (Recommendation, Paragraph 67)
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18 Conclusion
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GB Energy’s new advisory service does not contain a dedicated planning function, despite the planning...
GB Energy’s new advisory service does not contain a dedicated planning function, despite the planning system being one of the most significant barriers our evidence identified. Our view is that it should. Planning constitutes both legal and technical expertise as … Read more
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19 Conclusion
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There is much appetite for shared ownership, but careful consideration is needed to ensure contracts...
There is much appetite for shared ownership, but careful consideration is needed to ensure contracts are mutually-beneficial and prevent free-riders. Scotland and Denmark provide examples of where the voluntary approach to shared ownership has failed and where mandating shared ownership … Read more
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20 Recommendation
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The Secretary of State should use the power granted by the 2015 Infrastructure Act to...
The Secretary of State should use the power granted by the 2015 Infrastructure Act to give individuals and/or communities the right to purchase a 20% stake in a renewable generation facility in their local area at a fair market price. … Read more
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21 Conclusion
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The governance of the sector is rapidly evolving with the influx of new actors such...
The governance of the sector is rapidly evolving with the influx of new actors such as NESO and GB Energy but their roles and interactions with diverse community energy organisations remain unclear. Too much focus on high- level planning and … Read more
Department for Energy Security and Net Zero
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22 Conclusion
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Community energy projects are very popular and can be used to demonstrate the value of...
Community energy projects are very popular and can be used to demonstrate the value of a new project in a different community. They have the potential to demonstrate the value of renewables and can deliver cheaper electricity. A stronger alignment … Read more
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23 Recommendation
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The Government must incentivise collaborations between community energy organisations and local authorities to strengthen local...
The Government must incentivise collaborations between community energy organisations and local authorities to strengthen local and place- based governance. This energy transition “from the ground up “ will also strengthen engagement with local communities hosting large renewable energy infrastructure, which … Read more
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24 Conclusion
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Capacity building initiatives must be targeted and co-designed with community energy organisations to build on...
Capacity building initiatives must be targeted and co-designed with community energy organisations to build on existing knowledge and expertise in the sector. Such an approach will ensure that interventions and support are guided by practices and context-specific knowledge and skills, … Read more
Department for Energy Security and Net Zero
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