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, when a handful of large corporations owned and controlled our energy system. Community energy means clean generation that reduces carbon emissions and is owned by, and benefits, the local community.
Community groups use their local knowledge to identify sites for solar. 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, typically at around 5% per year. There’s usually 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 love?
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 contributing ideas to spend surplus funds in creative and environmentally beneficial ways. Indeed, the social value these projects bring to our communities is beyond a doubt.