Across the UK hundreds of groups have come together to work towards a clean, democratically owned supply of energy: ‘Community energy’.
We share this bold vision for the future. In fact, we helped develop it, having installed the very first community-funded installation in Oxford in 2008. It’s a vision that’s very different from the past century. Historically a handful of massive corporations owned and controlled our power system, creating pollution along the way. A community energy approach means clean generation that is owned by, and benefits, the local community.
There are now hundreds of community energy groups across the country, where people have come together to take meaningful action to reduce carbon emissions. As well as work on energy efficiency, many community groups are also developing their own renewable energy generating assets.
Community groups can use their local knowledge to identify sites. Schools are an obvious example, but other community buildings and local businesses are also viable as host sites. The community group then raises the finance to fund the scheme. Once built, the host site purchases the generated electricity from the community group at a subsidised rate, through a contract known as a Power Purchase Agreement. The community group then uses this income to pay back their investors, usually at about 5% per year. There’s typically a surplus fund produced that can then fund other environmental projects within the local area. It’s a win for the investors, a win for the host site, and a win for the wider community. What’s not to like?
Members of the local community can get involved in any number of ways. They can simply invest in the scheme, get involved in finding sites and developing projects, or finding ways to spend surplus funds in creative and environmentally beneficial ways.