1The Local Power Plan launched in February 2026 with up to £1 billion of funding represents the biggest public investment in community energy in UK history.
2Community shares typically offer 4-7% annual returns while directly funding local renewable energy. Minimum investment is often just £100.
3In 2025, 35MWp of solar capacity passed into community ownership – the largest ever transfer of community energy assets in the UK.
4Over 200 energy cooperatives now operate across the UK. Projects like Westmill Solar have returned an estimated 10% average to members since 2012.
Community solar is experiencing a transformation in the UK. In February 2026, the government launched the Local Power Plan, backed by up to £1 billion of funding from Great British Energy, representing the biggest public investment in community energy in the country’s history. The ambition is to support over 1,000 community-led clean energy projects by 2030, putting solar on schools, leisure centres, community buildings, and enabling local people to invest in and benefit from renewable energy generation in their areas.
The UK already has a strong foundation to build upon. In July 2025, eight solar farms totalling 35MWp passed into community ownership in the largest transfer of community energy assets ever in the UK, increasing community solar capacity in England and Wales by one-fifth. Projects like Westmill Solar Co-operative in Oxfordshire, the first community-owned solar farm in the UK when it launched in 2012, demonstrate what is possible. Over 200 energy cooperatives now operate across the country, with active share offers allowing individuals to invest from as little as £100 in local solar projects.
This guide explains how community solar works in the UK, covering the different ownership models, how to invest, the new Local Power Plan funding, existing UK projects, the benefits to communities, and how to start or join a community energy scheme.
Community Solar at a Glance
Local Power Plan fundingUp to £1 billion
Target by 20301,000+ community projects
Energy cooperatives in UK200+
Largest transfer (2025)35MWp across 8 farms
Typical investment range£100 to £100,000
Typical returns4-7% annually
What Is Community Solar?
Definition
Community-owned solar
Solar installations owned collectively by local people through shares
Community benefit solar
Commercial projects with community benefit funds or shared ownership options
Rooftop solar on community buildings
Panels on schools, village halls, leisure centres owned by local groups
Shared solar farms
Ground-mount arrays owned by cooperative or community benefit society
Schools, leisure centres, libraries, places of worship
Support Offered
Type of Support
Details
Grants
Direct funding for community projects
Loans
Finance for larger installations
Technical advice
Consultancy for communities wanting to install
Commercial support
Help developing sustainable business models
Skills development
Building capacity in the sector
Regulatory reform
Tackling grid connection and market access barriers
Early Achievements: The GBE Community Fund has already provided £5 million to 60+ community energy projects. The Mayoral Renewables Fund has allocated £16 million for solar on public buildings across 14 Mayoral areas, with ~£50 million in lifetime savings expected.
Community Ownership Models
Legal Structures
Structure
Description
Example
Community Benefit Society (BenCom)
Registered with FCA; run for community benefit
Many community energy groups
Cooperative Society
Registered with FCA; owned by members
Westmill Solar Co-operative
Community Interest Company (CIC)
Limited company with asset lock
Some community energy groups
Charitable Incorporated Organisation
Charity structure
Associated trusts
How Community Shares Work
Minimum investment
Typically £100 to £250
Maximum investment
Often £100,000
Voting rights
One member, one vote (regardless of investment size)
Returns
Interest paid annually; typically 4-7%
Capital repayment
Usually over 15 to 25 years
Risk
Capital at risk; not FSCS protected
How to Invest in Community Solar
Finding Share Offers
Platform
Description
Community Energy England
Lists current share offers from member groups
Ethex
Direct impact investing platform; hosts many community energy offers
Community Shares
Information on community share offers across sectors
Local community energy websites
Individual groups advertise their own offers
Current Share Offers (Examples)
Organisation
Project
Target Return
Minimum
Kent Community Energy
Rooftop portfolio
6%
£100
Bath and West Community Energy
2MW Compton Dando solar farm
5.75%
Varies
BHESCo (Brighton)
Neighbourhood solar and battery
5%
Varies
Big Solar Co-op
Large rooftop installations
5%+
Varies
Low Carbon Hub
Community energy fund
Varies
£100
What to Consider Before Investing
Risk
Capital at risk; not covered by FSCS
Liquidity
May be difficult to withdraw early
Returns
Not guaranteed; depends on project performance
Term
Typically 15 to 25 year investment horizon
Tax relief
Some offers may qualify for tax relief schemes
Local impact
Consider community benefit alongside financial return
UK Community Solar Projects
Case Study: Westmill Solar Co-operative
Project Details
Established2012
Capacity5MW
Homes powered1,600
Generation4.8 GWh/year
Investment
Members2,374
Share price£250-£20,000
Historical return~10% average
Community benefit1% revenue to WeSET charity
Pioneering Projects
Project
Location
Details
Westmill Solar
Oxfordshire/Wiltshire
5MW; first UK community solar farm (2012); 2,374 members
Ray Valley Solar
Oxfordshire
19MW; at one time largest community-owned; adding 3MW/12MWh battery
Brixton Energy Solar 1
London
First cooperatively owned solar in London (2012)
Ovesco
Lewes
Solar on Harveys warehouse (2011); pioneering rooftop model
Regional Community Energy Groups
Organisation
Region
Focus
Bath and West Community Energy
Somerset/BANES
Schools, community buildings, solar farms
Brighton Energy Co-operative
Sussex
Rooftop solar on community buildings
Low Carbon Hub
Oxfordshire
Schools, community buildings, solar farms, battery
Kent Community Energy
Kent
5MW solar farm; rooftop portfolio
Isle of Skye Renewables Co-op
Scotland
Wind and community projects; £1.5m distributed since 2008
Benefits of Community Solar
For Investors
Financial returns
Typically 4-7% annual interest
Ethical investment
Money directly funds renewable energy
Local impact
Benefits visible in own community
Democratic ownership
One member one vote regardless of investment size
Potential tax relief
Some schemes may qualify for SITR or similar
For Communities
Benefit
Details
Reduced energy bills
Host buildings save on electricity
Community benefit funds
Surplus reinvested locally
Local jobs
Installation and maintenance employment
Energy awareness
Educational visits; engagement with climate
Community cohesion
Brings people together around shared purpose
For Host Buildings
Building Type
Typical Benefit
Schools
50% electricity savings; freed budget for other priorities
Community centres
Reduced running costs; more sustainable operation
Village halls
Lower bills; potential income
Leisure centres
Significant savings on high energy use
Places of worship
Reduced costs; environmental witness
Starting a Community Solar Project
Key Steps
Step
Actions
1. Form a group
Gather interested local people; establish steering group
2. Identify sites
Find suitable rooftops or land; assess feasibility
3. Legal structure
Register as community benefit society or cooperative
4. Feasibility study
Technical and financial assessment of project
5. Planning permission
If required for ground-mount; usually not for rooftop
Grants, loans, technical support (Local Power Plan)
Big Solar Co-op
Training; support for volunteers to deliver solar
International Comparison
Denmark has 50%+ of wind citizen-owned. Germany has ~50% of solar citizen-owned. The UK has historically lagged but the Local Power Plan aims to close this gap significantly by 2030.
Summary
Community Solar – Key Facts
Government support£1 billion Local Power Plan; biggest ever public investment
Target1,000+ community projects by 2030
Current sector200+ energy cooperatives; 1.9GW in pipeline
InvestmentFrom £100; typical returns 4-7%
BenefitsLocal jobs; reduced bills; community funds; climate action
Major transfer35MWp to community ownership (2025)
Community solar in the UK is entering a new era. The Local Power Plan, launched in February 2026 with up to £1 billion of funding from Great British Energy, represents the biggest public investment in community energy in the country’s history. The ambition is transformative: every community should have the opportunity to own or participate in a local energy project by 2030, with over 1,000 community-led projects supported in the first phase.
The sector is already demonstrating what is possible. The 2025 transfer of 35MWp of solar capacity to community ownership through Community Energy Together increased community solar in England and Wales by one-fifth, with over £20 million expected in community benefit funding. Groups like the Isle of Skye Renewables Co-op have distributed over £1.5 million to members and local projects since 2008. Schools and community buildings across the country are reducing their energy bills by 20-50% through hosting community-owned solar installations.
Investing in community solar offers individuals a way to earn returns of typically 4-7% while directly funding renewable energy in their area. Unlike commercial projects where profits flow to distant shareholders, community energy keeps money local, reinvesting in community benefit funds that have paid for playgrounds, orchards, Scout groups, and energy efficiency improvements. The democratic structure means every member has an equal vote regardless of investment size, and the benefits are visible in the community.
Challenges remain, particularly around grid connection delays and the reliance on volunteers in early-stage development. However, the combination of unprecedented government support, growing public awareness, and a proven track record from existing projects suggests community solar will play an increasingly important role in the UK’s energy transition.
