Community Energy Plan unlocks £1bn pipeline for local green energy projects

The government has launched an investment in community-owned energy with the publication of its Local Power Plan, which includes up to £1 billion in funding to be made available for locally-delivered renewable energy projects across the UK.

Backed by Great British Energy, the plan is expected to boost construction of these schemes across hundreds of towns and cities, with up to 1,000 schemes set to be developed. These could range from rooftop solar arrays on community buildings to ground-mounted installations in urban and rural locations. The announcement represents a significant pipeline of potential work for contractors, consultants, and supply chain partners with expertise in small to mid-scale energy infrastructure.

The programme is already underway, with 53 projects approved in England, including solar installations on places of worship in Leicestershire, a solar farm in Wiltshire, and work on heritage buildings in Rotherham. Further investment has gone to mayoral combined authorities and devolved governments, with funded work including energy upgrades to fire stations, leisure centres, NHS facilities, and schools.

Construction firms with expertise in renewable energy delivery will find particular opportunity as the Local Power Plan addresses barriers to delivery, offering not just direct funding through grants and loans, but also technical support and new business models to help local groups get schemes off the ground. The plan includes:

* Capital funding for local authorities and community groups to appoint contractors and design teams

* Capability building and advice to streamline the procurement and build process

* Regulatory reforms to reduce complexity and improve power-sharing models at local level

With clean energy projects eligible for funding including solar PV systems, small-scale wind, battery storage and energy retrofits, there is significant scope for contractors to secure repeat work in towns and cities across the UK.

The first regional partnerships have been announced with combined authorities including West Midlands, Greater Manchester, East Midlands, West Yorkshire, London, and York & North Yorkshire, with more areas expected to follow.

Construction firms interested in delivering future projects are encouraged to engage with local authorities and Great British Energy, which will act as a central coordinator and “one stop shop” for community energy delivery.

Energy Secretary Ed Miliband said the plan would:  “Give local people the chance to take control of their energy,” while creating jobs and building long-term economic resilience at community level.

With additional investment also flowing through the government’s £5 billion Pride in Place programme, the Local Power Plan is expected to fuel a new wave of community-driven development.