Great British Energy Launches £30m People's Power Fund for Community Energy

Local authorities and community groups across the UK can now apply for a share of £30 million in new government grants to build and own their own clean power projects. Great British Energy opened the funding on 17 September 2026, describing it as the first instalment of the "biggest public community energy investment in UK history".

The £30 million is the initial payment on a larger commitment. Ministers announced in February 2026 that up to £1 billion would be made available through the Local Power Plan, aimed at putting solar panels, wind turbines and hydro schemes into the hands of the people who live near them rather than commercial energy companies.

How the £30 Million Community Energy Fund Is Being Split

The headline figure covers four strands of support. The largest is a £20 million Community Fund, open to community organisations in England, Wales and Northern Ireland, to develop and build clean energy assets the community itself will own. To qualify, a project must show the community holds a defined legal and financial interest in it, and that a set share of the benefits will be retained for, or delivered to, the local area rather than an outside investor.

Alongside it sits a new £5 million Partnerships Grant, helping English local authorities team up with community energy organisations to get joint projects off the ground faster. Scotland's sector is supported separately, with £1.8 million added to the Scottish Government's existing CARES programme, on top of more than £10 million already channelled through it earlier this year. A further £2.9 million funds advice services across England, Wales and Northern Ireland, recognising that many groups need practical guidance before they can even apply for a grant.

Why Ministers Want Villages and Councils to Own Their Own Power

The government's case rests on a simple idea, if a community owns the wind turbine or the solar array on its library roof, the money that energy generates stays local instead of flowing to a private supplier. Prime Minister Andy Burnham said the funding was designed to give people a direct say in "what clean energy projects they want" and to make sure they "feel the benefits of the clean energy transition in their pockets too". Energy Secretary Miatta Fahnbulleh, referencing the record temperatures seen this summer, said communities should be able to "reap the full benefits of clean energy, reducing emissions, cutting bills and reinvesting profits to benefit local areas, instead of big energy companies".

Ministers point to Germany and Denmark as evidence the model can work at scale. The Local Power Plan notes that more than half of Denmark's wind capacity and roughly half of Germany's solar capacity is citizen owned, a level of ownership the UK has not matched. Beyond this week's grants, the government says it will set out further detail this autumn on letting community groups take an ownership stake in projects built by commercial developers, creating a formal route for proceeds from privately developed wind and solar farms to flow back into the areas that host them.

157 Rooftops Already Switched On, But the Numbers Are Still Small

The £30 million launch follows an earlier phase of support that has already reached dozens of public buildings. Up to £16 million in Great British Energy funding has gone to England's Mayoral Combined Authorities, resulting in 157 new rooftop solar installations, from fire stations to leisure centres. Officials estimate that scheme could deliver up to £50 million in total bill savings, reinvested into local services rather than absorbed by rising running costs.

What Happens Next for Community Energy Groups

Great British Energy chief executive Dan McGrail said the organisation's "vision is that every community should have the chance to build and own its own renewable energy", describing the two grants as giving groups "the practical support they need to get clean energy projects off the ground". Community Energy England chief executive Dr Matt Vickers welcomed the launch as "the first step" in the wider billion pound commitment, but said his organisation had "long advocated" for exactly this kind of partnership fund, so councils and community enterprises could "work together to transform places".

Great British Energy has also said it is separately seeking information from investors to help size and scope future community energy products, suggesting the £30 million grants are meant to sit alongside loan finance and private capital rather than replace it. Community organisations and local authorities wanting to apply are being directed to the relevant funding stream depending on where they are based and the kind of project they are proposing.

The real test will be whether this first £30 million translates into projects actually built and generating power, rather than a funding announcement. With ownership stake details still to come this autumn, much of the plan's substance is yet to be tested.