Great British Energy has launched the first £30 million wave of funding for community-led clean energy projects across the UK, giving local authorities and community energy groups access to grants to develop and build their own renewable energy assets.

The funding is the first step towards a wider programme of up to £1 billion announced earlier this year, with the government aiming to support more than 1,000 local and community-led clean energy projects. The projects are intended to be owned by community energy groups or local authorities, allowing local areas to retain a share of the benefits generated by the clean power they produce.

The UK Department for Energy Security and Net Zero said the projects could range from solar panels on local buildings to community-owned wind farms and hydropower schemes. The government says the initiative is designed to help communities reduce energy costs, generate local economic benefits and support the transition away from fossil fuels.

Three funding streams

The main component of the package is the £20 million Community Fund, which will provide grants to community organisations in England, Wales and Northern Ireland to test, develop and build community-owned clean energy assets.

Projects receiving support must demonstrate that the community will hold a defined legal and financial interest in the project and that a defined share of its benefits will be retained for, or delivered to, the local community.

A further £5 million Partnerships Grant will support local authorities in England and community energy organisations working together to accelerate joint clean energy projects with lasting local benefits.

Great British Energy is also providing £1.8 million to the Scottish Government to support community energy projects in Scotland through the existing Community and Renewable Energy Scheme (CARES). This builds on more than £10 million in funding provided earlier this year for Scotland's community energy support schemes.

In addition, up to £2.9 million will support advice services across England, Wales and Northern Ireland, helping local groups develop community energy initiatives.

Community ownership

Alongside the new grants, the UK government said it will set out further details this autumn on plans to offer community energy groups an ownership stake in renewable energy projects.

The proposed model is intended to create partnerships between communities and renewable energy developers, with a share of the proceeds from clean power flowing back into local areas.

The government said the approach would bring Britain closer to models already widely used in countries including Germany and Denmark, where communities can have a direct ownership interest in local renewable energy projects.

Energy Secretary Miatta Fahnbulleh said the initiative would give communities a greater role in the country's energy transition, allowing them to benefit from lower bills, reduced emissions and the reinvestment of project proceeds in local areas.

Great British Energy CEO Dan McGrail said the organisation's vision was for every community to have the opportunity to build and own its own renewable energy, with the new grants providing practical support to community organisations and local authorities.

£50 million in potential savings

The new community energy funding comes alongside Great British Energy projects already being deployed across England's Mayoral Combined Authorities.

The government said more than 150 renewable energy projects have now been switched on for public buildings, with further projects planned. Together, these projects could generate up to £50 million in total energy bill savings that could be reinvested in local services.

Separately, Great British Energy has already provided up to £16 million to all Mayoral Combined Authorities in England to help local services reduce their energy bills. This support has resulted in 157 new rooftop solar projects being installed on public buildings, including fire stations and leisure centres.

The government has also said that Great British Energy is seeking information from investors to help determine the size and scope of future funding products.

Community Energy England CEO Dr Matt Vickers welcomed the Community Fund as the first step in the wider £1 billion investment programme, saying it would enable community enterprises to develop projects aimed at reducing bills and retaining the benefits of energy generation within the communities where it takes place.