Community energy can help build a cleaner, fairer energy system, but without the right policy, market and regulatory support, many community-led projects still struggle to get off the ground. That’s why the Centre for Sustainable Energy, CSE, gave evidence to parliament’s Unlocking Community Energy Inquiry last year, setting out the reforms needed to help the sector grow and deliver lasting local benefit.

We’re really pleased to see that in the committee’s latest report, released yesterday, many of our recommendations and those from other witnesses have been taken onboard. These proposals would help to level the playing field for community energy and make the government’s target of 8GW by 2030, a 20-fold scaling up of the sector, more achievable.

The issues we raised

In our consultation response last year, we stressed that without a clearer route to market and price security, like that available to larger commercial projects, community energy projects will continue to struggle to attract investment.

We also highlighted that renewable energy projects developed by local communities are materially different from commercial projects as the benefits they provide are greater, the public are more supportive about them, they require more support from governmental bodies, and their access to at risk capital is low with a low ability spread risk across multiple projects.

How the report responds to these challenges

The report highlights several practical changes that would make a meaningful difference. We’re pleased to see that many of our recommendations have been taken on board.

The new reports suggests the creation of a new Community Energy Export Guarantee to give projects a clearer route to market and greater revenue certainty.

Another key recommendation is the emphasis on shared ownership. This was a major talking point at yesterday’s Community Energy England conference, where sector leaders highlighted both the huge opportunity shared ownership presents for scaling community energy, and the significant support community groups will need to engage effectively with commercial developers.

It also calls for regulatory reform so that community energy generators can sell electricity directly to local consumers, alongside giving community schemes priority in grid connection queues.

A clearer definition of community energy is recommended to distinguish these organisations from commercial developers and ensure that community benefits can be treated as material considerations in planning processes.

The report also emphasises the need for targeted capacity‑building, co‑designed with community energy organisations and grounded in the expertise already present in the sector.

The committee encourages stronger collaboration between community energy groups and local authorities, supported by procurement and planning changes that make partnership working easier.

It also stresses the importance of implementing the existing right for communities to take a minimum 20% stake in local renewable energy projects.

Finally, the committee calls for clear roles and responsibilities across government, regulators, agencies and industry to deliver the 8GW target, and recommends that a defined proportion of the £1bn Local Power Plan funding be ringfenced specifically for community energy projects rather than absorbed into wider local authority spending.

Why these recommendations matter

We welcome the recognition that community energy projects are materially different to commercial projects; and to level the playing field with the commercial sector, community energy projects should be treated differently, in grid queues, planning processes and support mechanisms.

Our Policy Officer, Dan Stone, said:

The government isn’t agnostic when it comes to supporting community energy – and for good reason. Community energy builds support for the clean energy transition and delivers tangible benefits to or local communities. Our energy markets, regulatory and planning systems should recognise that value too.

Without these reforms, the 8GW ambition in the Local Power Plan will be very difficult to meet. We heartily endorse the committee’s recommendations and hope the government acts upon them.