The Local Power Plan will be run by the government-backed Great British Energy (GBE) and the Department of Energy Security and Net Zero (NESNZ) to expand local and community ownership of renewable energy plants across the UK.
February 11, 2026
The government will pledge up to £1 billion to support community ownership of new clean energy projects.
The Local Power Plan will be run by the government-backed Great British Energy (GBE) and the Department of Energy Security and Net Zero (NESNZ) to expand local and community ownership of renewable energy plants across the UK.
It will offer direct funding through a combination of grants, loans and local investments to community energy groups, local and devolved governments and community members in what Energy Secretary Ed Miliband called “the biggest public investment in community energy in this country’s history.”
GBE said it is currently “exploring” financing models for the scheme, which include grants for early-stage project development targeting both community energy groups and partnerships between those groups and local governments; loans for construction and operations, including a Shared Ownership loan; and a “Local Investment Fund” to identify and fund viable project opportunities.
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“Our ambition must reach every part of the UK. That is why we have set the bold target of supporting over 1,000 local and community projects in the first phase of our strategic plan to 2030,” said Dan McGrail, CEO of GB Energy.
Alongside direct financing, the government said GBE would offer expertise and consultancy for communities wanting to install energy projects and DESNZ will “tackle policy and regulatory barriers” to developing local energy. This will include changes to grid interconnection policies and market access for small-scale renewable energy projects. DESNZ said it is working with Ofgem and DNOs to address the grid connection process as a “key reason for project delays.”
“This is about working hand in hand with community groups, local authorities and the devolved governments right across the UK to realise a bottom-up vision not just of publicly owned power, but of power owned and controlled by communities themselves,” Miliband said.
As part of the Local Power Plan, DESNZ will review a “mandatory shared ownership” offer for renewable energy projects, which could require that local communities are given the option to own a portion of energy infrastructure in their area.
“Ownership is a transformative tool to build the wealth of local areas—giving people a stake in the places they live and generating pride, respect and local prosperity that can’t be dismantled,” Miliband added. Communities already own energy projects across the UK, with around 1.9GW of projects already under construction or development by grassroots groups, according to Solar Energy UK.
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The plan has been met with broad support from a number of energy sector bodies. “It’s encouraging to see a clear commitment to provide funding and finance for communities, which will be crucial to help them kick start the development and delivery of local projects,” said senior project manager at the Energy Saving Trust, Graham Ayling. The organisation’s head of external affairs, Stew Horne, added that the plan “sets out a strong and ambitious vision”.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said that the plan “has real potential to help bring down bills while keeping the benefits of clean power rooted in local places.”
In a statement, Solar Energy UK welcomed DESNZ’s plans for “reforming the costly red tape surrounding grid connections, driving more community energy installations on public sector buildings and making it easier to sell power to the grid at scale.”
Chris Hewett, head of Solar Energy UK, said: “The £1 billion local power plan is going to bring renewables into the heart of communities all over the country. So that means lower bills for schools, for community centres, village halls and many more. Our members look forward to advising community energy companies on potential projects and delivering them, to everyone’s benefit.”
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However, Solar Energy UK – a representative group for solar and energy storage companies – said it had “concerns” about the potential shared ownership mandate.
“We are worried that forcing developers to hand over part of their projects will disincentivise investment, just at the time that the UK needs to grow its renewable energy generation capacity at an unprecedented rate,” said Gemma Grimes, Solar Energy UK’s director of policy and delivery. “Coming on top of the recent change in indexation for legacy subsidy payments and expectations of a mandatory framework for community benefits, the proposal does not send the right signal to the industry.”
The government has been exploring mandatory community benefit frameworks, including funds, since May. Plans were discussed to set minimum community benefit fund amounts based on the size of infrastructure projects, which would go towards new facilities, investments and transport links.
Community engagement and opposition are a major part of the development process for solar projects, particularly as political rhetoric in the UK has turned broadly against large renewable energy developments.
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Will Norman
Senior Reporter, Informa
Will is a senior reporter who primarily covers the policy and geopolitics behind the energy transition, with a particular focus on manufacturing.
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