Community energy is one of the less-talked-about but genuinely exciting parts of the UK energy landscape. These locally owned renewable projects let ordinary people invest in clean energy and earn returns while reducing their community’s carbon footprint.

What Is a Community Energy Scheme?

A community energy scheme is a renewable energy project — typically solar, wind, or hydro — that is owned or co-owned by local people rather than a large energy company. Members invest (usually £250-£5,000 minimum) in exchange for a financial return, typically 4-7% annual interest paid over 5-20 years. The energy generated is fed into the national grid and sold, generating the income used to pay investors.

Types of Community Energy Projects

• Solar farms: The most common — large arrays of panels on farmland or rooftops, feeding into the grid
• Wind cooperatives: Community-owned turbines, often in rural areas
• Hydro schemes: Small-scale run-of-river projects, particularly in Scotland and Wales
• Local energy hubs: Newer models where community-generated power is sold directly to local homes at a discount

How to Find and Join a Scheme

The best starting point is Sharenergy (sharenergy.coop) and Community Energy England (communityenergyengland.org), which both list active investment opportunities. Many schemes open funding rounds for a limited period — often just a few weeks — so signing up to their newsletters is the best way to stay informed. Investments are not FSCS protected and are illiquid (you cannot withdraw early), so they suit patient investors who believe in the project.

The Wider Benefits

Beyond financial returns, community energy schemes typically reinvest a portion of profits into local community funds — village halls, school projects, and local environmental initiatives have all benefited. If you want your money to do more than sit in a savings account, community energy is worth exploring. Compare energy deals while you research your options.