Great British Energy Local Power Plan: Community Solar and Battery Schemes

If you rent, live in a flat, or own a listed building, rooftop solar has probably felt out of reach. The government's Local Power Plan — delivered through Great British Energy (GBE) — is designed precisely for situations like yours. It funds community-owned solar and battery projects that any local resident can benefit from, whether or not they can install anything at home.

This guide explains how the Local Power Plan works, what community battery storage looks like in practice, and what you need to know before getting involved.

What is the Local Power Plan?

Great British Energy is a publicly owned clean power company established by the UK government. Its purpose is to accelerate the country's energy transition by investing directly in renewable projects — not as a commercial operator chasing profit, but as a long-term anchor investor filling gaps that the private market leaves behind.

The Local Power Plan, published in February 2026, is GBE's vehicle for channelling energy investment into communities rather than large commercial sites. The plan commits:

• A £1bn fund to co-finance community and local energy projects
• A target of 1,000 projects by 2030
• Coverage across solar generation, battery storage, and local grid infrastructure
• Priority given to projects that deliver benefits directly to the surrounding community — lower energy bills, local employment, or shared ownership

Projects under the plan can include solar arrays on schools, libraries, sports centres, village halls, and other community buildings; ground-mounted solar on community-owned land; and shared battery energy storage systems (BESS) that multiple households can access.

GBE acts as a co-funder alongside community energy groups, local authorities, and housing associations. It does not build or operate projects itself — it provides the capital that makes marginal projects financially viable.

How community solar works

Community solar operates on a co-operative or community benefit society model. The structure is worth understanding before you consider getting involved.

The co-operative model

A community energy group — often constituted as a Community Benefit Society (CBS) or an Industrial and Provident Society — raises capital by offering shares to local residents. That capital, supplemented by GBE co-investment under the Local Power Plan, funds the installation of solar panels on a suitable community building.

The solar panels generate electricity. That electricity is either:

• Sold to the building's occupier (a school, leisure centre, or housing association) at a rate below grid retail — lowering their energy bills
• Exported to the grid via a Power Purchase Agreement (PPA) or the Smart Export Guarantee (SEG), generating income
• A combination of both

The income is used to pay operating costs, service any debt, and distribute returns to members who invested in the share offer.

What members receive

Members who invest through a share offer typically receive:

• An annual interest payment on their invested capital, usually 3–5% per annum (though this varies by project and is not guaranteed)
• The knowledge that their money is generating renewable energy locally
• In some cases, a community benefit fund contribution — a pot of money the group distributes to local charities or energy efficiency projects

Members do not receive cheaper electricity directly delivered to their home. The benefit to members is financial (the return on investment) and environmental. The benefit to the host building is reduced energy costs.

Community battery storage

Community battery storage — or community BESS (Battery Energy Storage System) — extends the co-operative model to include shared battery capacity. Rather than (or in addition to) solar generation, the scheme installs a large-scale battery that stores electricity bought at low-rate periods and dispatches it at higher-rate periods, or stores excess solar generation for use later.

How members benefit

In a community battery scheme, members may benefit in one or more of the following ways:

• Investment returns: as with community solar, returns are generated from energy arbitrage (buying cheap, selling or dispatching dear) and are distributed to members
• Bill reduction: some schemes offer members the ability to draw on community battery capacity at below-market rates — effectively giving flat-dwellers or renters access to the economics of battery storage without owning a battery themselves
• Virtual participation in a Virtual Power Plant (VPP): community batteries can be aggregated alongside household batteries to provide grid flexibility services, generating additional revenue

Worked example: Low Carbon Hub's Ray Valley facility

One of the most cited examples of this model in practice is Low Carbon Hub's Ray Valley community battery, located in Oxfordshire. The facility is rated at 3MW / 12MWh — capable of storing and dispatching substantial amounts of energy across the local grid.

Local residents can invest in the project with shares from £100. The battery earns revenue through electricity market participation and grid services. Returns are paid out to shareholders, and a community benefit fund receives a proportion of income.

This type of project illustrates exactly what the Local Power Plan is designed to enable at scale. GBE's £1bn fund is intended to replicate and expand models like Ray Valley across the country — particularly in areas where community groups lack the capital to build such facilities without public co-investment.

Who benefits most?

Community solar and battery schemes are particularly valuable for households that cannot benefit from conventional rooftop solar.

Renters

If you rent your home, you cannot install solar panels without your landlord's permission — and even with permission, you are unlikely to spend £5,000–9,000 on a system in a property you do not own. Community energy schemes offer renters a way to invest in and benefit from renewable energy, even without any installation at their own property.

Flat-dwellers

Flats present structural and practical barriers to rooftop solar. Roof access belongs to the building owner or a managing agent. Shared ownership of roof space is complicated. Leasehold restrictions often prevent any modifications. Community schemes sidestep all of this entirely.

Listed building owners

Listed buildings require Listed Building Consent for most external alterations. Solar panels on a Grade I or Grade II listed property are frequently refused or are subject to strict positioning requirements that make standard installations unviable. A community share offer asks nothing of your building.

People with unsuitable roofs

North-facing roofs, roofs heavily shaded by trees or neighbouring buildings, or roofs in poor structural condition may not be suitable for solar at all. Community energy offers a clean alternative route.

People who want to act but lack upfront capital

A community share offer with a minimum investment of £100–250 is accessible to a far wider range of people than a £6,000 household solar installation. For households who want to participate in the energy transition but cannot stretch to a full system, community schemes offer a proportionate entry point.

How to find a community energy scheme near you

The primary directory for community energy projects in England is Community Energy England (CEE). Their website lists active and upcoming share offers from community energy groups across the country, searchable by region.

In Scotland, Community Energy Scotland maintains a separate register and runs the CARES (Community and Renewable Energy Scheme) programme, which provides development funding to Scottish community energy groups.

In Wales, Community Energy Wales is the equivalent body.

Steps to explore what is available near you:

1. Visit Community Energy England (communityenergyengland.org) and search by region or postcode
2. Check your local council's website — some councils have partnered directly with community energy groups and publicise opportunities through their climate action or sustainability pages
3. Look for local energy co-operatives by searching "[your town or county] energy cooperative" or "[your area] community solar"
4. Watch the GBE website (greatenergy.org.uk) for announcements of newly funded projects under the Local Power Plan — the volume of projects is expected to increase substantially from 2026 onwards

How is this different from Solar Together?

The Local Power Plan and Solar Together are frequently mentioned in the same breath. They are fundamentally different models and it is worth being clear about the distinction.

Solar Together is a group purchasing scheme for homeowners who want their own installation at a negotiated discount. The Local Power Plan funds community assets that members invest in and receive returns from — with no installation at your own property required or implied.

If you own your home and have a suitable roof, exploring both routes is worth doing. Solar Together may be faster and more directly impactful on your bills. If you cannot install solar at home, the Local Power Plan route is the relevant one to explore.

Investment and returns

Before investing in any community energy share offer, it is important to understand the financial structure clearly.

Share costs

Most community energy share offers set a minimum investment in the range of £100–£250 and a maximum per member of £5,000–£20,000, depending on the size of the project. Some co-operatives offer different share classes with different terms.

Typical returns

Returns across the UK community energy sector typically fall in the range of 3–5% per annum, paid as interest on your invested capital. Some projects have historically delivered higher returns in periods of elevated electricity prices; others have delivered less in low-price periods. Past performance of other projects is not a guide to the return of any specific project.

Important financial considerations

• Returns depend on electricity prices, project performance, and operational costs — all of which can change over the lifetime of the project
• Community energy shares are not cash savings accounts. They are not covered by the Financial Services Compensation Scheme (FSCS)
• You may not be able to withdraw your capital immediately — most projects have a minimum hold period (often 5 years), and there is no guarantee of a secondary market for shares
• Projects can underperform for reasons outside anyone's control: reduced solar irradiation, equipment failure, changes in export tariff structures

How to get involved

Getting involved in community energy under the Local Power Plan is a step-by-step process — it is not a form you fill in at a government website.

Step 1. Find a scheme near you. Use the Community Energy England directory (or the equivalent body for Scotland or Wales). Look for projects that are either raising funds currently or are in development and expect to launch a share offer soon.

Step 2. Read the share offer document. Every legitimate community energy share offer publishes a formal document setting out the project details, financial projections, risk factors, and terms for members. Read it in full, particularly the risk section.

Step 3. Ask questions. Community energy groups expect potential investors to ask questions. Contact them directly — most have an email address and many hold public information evenings.

Step 4. Invest only what you can afford to tie up. Given the hold periods and the absence of FSCS protection, invest an amount whose absence you could tolerate for five or more years without difficulty.

Step 5. Keep an eye on the GBE website. As the Local Power Plan moves from planning to delivery, the volume of funded projects will increase. New schemes will launch in areas that currently have no local option. Registering interest with community groups before a share offer opens is a useful way to be notified early.

For further context on how community ownership fits within the broader solar landscape, see community solar schemes UK. If you are a renter exploring your options more broadly, solar for renters covers the full range of routes available without needing landlord permission or property ownership.

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