Community energy groups are revolutionising local energy production while improving resilience against energy price volatility. With rising Net Zero commitments and government incentives supporting local energy generation, businesses and community organisations that invest in renewable energy now,  could secure long-term financial and environmental advantages.

What is Community Energy?

Community energy refers to energy projects that are owned and managed by local groups, often involving renewable sources such as solar, wind, or biomass. These initiatives focus on local ownership, ensuring that the benefits of energy production stay within the community. By prioritising sustainability, community energy projects help cut costs, increase resilience, and provide a reliable long-term energy source.

The Benefits of Community Energy Projects

Community energy projects offer a wide range of advantages, including:

• Local Economic Growth – Local energy projects create jobs and stimulate the economy by keeping investments within the community.
• Energy Independence – Reducing reliance on external energy suppliers protects businesses from fluctuating energy costs.
• Environmental Sustainability – Utilising renewable energy lowers GHG emissions, supporting Net Zero targets.
• Financial Incentives – Businesses can access schemes like:
  • Rural Community Energy Fund (RCEF) – Feasibility grants for early-stage projects.
  • Energy Company Obligation (ECO) – Support for energy efficiency initiatives.
  • Local Authority Green Grants – Funding for sustainable projects at the community level.
• Social Cohesion – Collaborative projects foster a sense of unity and shared purpose within local communities.
• Educational Opportunities – Community energy projects provide practical learning experiences about sustainability and energy management.

Businesses that fail to transition to community energy solutions face higher energy levies, supply chain restrictions, and reduced access to government contracts.

Overcoming Challenges in Community Energy

While community energy projects provide benefits, they also present challenges:

1. Navigating Regulatory Requirements

Community energy projects must align with UK Net Zero Strategy, SECR regulations, and Smart Export Guarantee (SEG), which allows organisations to sell excess renewable energy back to the grid. Additionally, businesses working within community-led energy schemes can benefit from the Contracts for Difference (CfD) programme, which supports long-term renewable investment. Failure to comply with these policies may result in financial penalties, missed grants, and limited business opportunities.

2. Securing Funding and Investment

Accessing capital for community energy projects can be difficult. However, businesses and community groups can utilise government-backed grants, private investment opportunities, and cooperative ownership models to fund their initiatives. Tomson can help support applications and provide tailored funding advice.

3. Technical Expertise and Infrastructure

Developing and managing energy projects requires specialist knowledge. Partnering with expert consultants, like Tomson, ensures that community energy systems are planned, installed, and managed effectively.

4. Engaging the Community and Stakeholders

Public engagement is crucial for successful projects. Educating residents and businesses on the benefits of community energy can drive participation and long-term sustainability.

Innovative Approaches to Community Energy Solutions

To maximise the impact of community energy projects, adopting innovative strategies is essential. Here are some approaches that have proven effective:

• Utilising Waste as Fuel – Waste-to-energy solutions provide sustainable heating and electricity while reducing landfill waste.
• Hybrid Energy Systems – Combining solar, wind, and battery storage enhances energy reliability.
• Digital Platforms for Engagement – Community apps and smart grids enable real-time energy monitoring and consumer participation.
• Innovative Financing Models – Cooperative ownership, power purchase agreements (PPAs), and crowdfunding can help make projects financially accessible.
• Smart Grid Integration – Enables better energy distribution, reduces waste, and enhances efficiency.

Practical Steps to Implement Community Energy Solutions

A structured approach ensures long-term success:

1.Short-Term (0-12 months)

• Have Tomson Conduct a Feasibility Study – Assess energy needs, infrastructure requirements, and funding options.
• Have Tomson Provide Support to Secure Initial Funding – Apply for RCEF, ECO, and local authority grants.
• Have Tomson Help to Engage Stakeholders – Build partnerships with local businesses and residents.

2.Medium-Term (1-3 years)

• Develop Renewable Infrastructure – Install solar panels, wind turbines, or bioenergy systems.
• Integrate Smart Grids – Enhance energy reliability and efficiency.
• Create a Governance Model – Establish a cooperative or community-led management system.

3.Long-Term (3+ years)

• Expand Renewable Projects – Scale up microgrids and peer-to-peer energy trading.
• Ensure Continuous Improvement – Monitor performance, refine strategies, and future-proof projects.

Waste-to-Energy in Action

A prime example of community energy innovation is waste-to-energy heating systems. Several UK communities have established waste-to-energy plants, converting waste materials into sustainable heating for homes and businesses.

Key Advantages:

• Waste Reduction – Diverts waste from landfills, reducing pollution.
• Reliable Heating – Provides a steady and cost-effective energy supply.
• Economic Benefits – Creates local jobs and economic opportunities.
• Environmental Impact – Reduces GHG emissions by replacing fossil fuels.

Moving Forward with Community Energy

Community energy is a powerful tool for local economic growth, sustainability, and energy independence. However, its success depends on strategic planning, regulatory compliance, and financial sustainability.

Tomson provides expert guidance on funding applications, regulatory compliance, and implementing community energy solutions. Whether you're launching a new energy initiative or optimising an existing one, we ensure seamless implementation, financial optimisation, and compliance alignment.

Take control of your community's energy future! Contact Tomson today for a tailored renewable energy strategy.