The UK has completed the biggest-ever transfer of community energy assets, meaning solar farms with a collective capacity of 36MWp and potential profits of £20m have gone into community ownership.
The transfer will see five community businesses across England and Wales coming together to form a partnership called Community Energy Together (CET) as they take ownership of eight solar farms, which between them generate enough energy to power almost 13,000 homes.
The deal, which was announced today by social impact investor Big Society Capital, will increase England’s community solar capacity by 20%.
It also means that some £20 million of profits will now be given directly to the local community, where it can be used to fund a range of local issues and initiatives such as combatting fuel poverty and climate action.
Big Society Capital investment director Joe Shamash said: “This transfer is testament to the potential that community energy has to help the UK reach its net zero targets in a way that benefits local communities throughout the country.”
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The transfer aligns with the Labour party’s energy plans, which encourage community ownership of small-scale projects, cleaner power, money being reinvested in communities and utilisation of private investment as part of the GB Energy policy.
The landmark solar deal was managed by Community Owned Renewable Energy (CORE), a partnership between Big Society Capital and independent trust Power to Change.
Power to Change CEO Tim Davies-Pugh said: “Bold, collaborative approaches are needed to rapidly grow community energy at scale, opening new markets and bringing in institutional investment, while remaining embedded in local communities.”
“As a key partner in this innovative scheme, we stand ready to share the lessons, particularly as the Labour Party further develops its approach to community energy through its Local Power Plan.”
