Power to the people: how community energy is lighting the way

Written by Lori Campbell on 6th Oct 2025

This article is part of a three-part Good Money Week series exploring how Ethex investments are driving positive change – from community-owned energy to fairer finance and building community wealth.

As the UK looks to cut carbon while keeping bills down, one bright spot is shining through: community-owned energy. Across the country, local groups are proving renewable power doesn’t have to be the preserve of big corporations. They can be run by, and for, the communities who benefit from it.

Much of the recent growth comes from platforms that connect local projects with everyday investors. One of the longest-running is Ethex, which has helped raise more than £120 million for community initiatives, including over 80 renewable schemes since 2013. 

Its sister initiative, Energise Africa, applies the same impact investing model overseas, enabling UK investors to fund solar that brings affordable power to families in sub-Saharan Africa. Together they show how ‘people power’ can drive the transition at home and abroad.

From solar on school settings, to community-owned solar farms, projects are multiplying, and reinvesting surpluses locally.


Why direct impact investing matters now more than ever


A movement that’s growing fast

Community energy has moved far beyond a niche idea. Community Energy England says the sector saved almost 166,000 tonnes of CO₂ and contributed nearly £13 million to local economies in 2023. It also delivered £4.4 million in bill savings. This is crucial when households and community organisations are under financial pressure.

Since 2017, more than £240 million has been raised by community groups from people who want their money to have a positive impact.

Image: Energise Barnsley

What does community energy look like?

The model is diverse. Kent Community Energy, for example, is currently raising funds to install rooftop solar panels on community buildings across the county, cutting carbon emissions, reducing bills and delivering long-term local benefits.

Meanwhile, the Big Solar Co-op has a bond offer to help transform a former opencast mine into a clean energy site, using a mix of ethically-sourced and recycled solar panels.

And when communities take ownership of larger assets, such as existing solar farms, the impact goes further still. Revenues are reinvested locally, supporting food banks, mental health services, biodiversity projects and insulation upgrades for village halls.


What you need to know about: Ethex


Why people are backing it

For many investors, the appeal is clear: community energy offers a double dividend. You can seek a fair return while making a measurable difference, from cutting carbon to supporting local initiatives you recognise.

Lisa Ashford, CEO of Ethex, calls it “power to the people in every sense of the word.” Investors can point to projects and say ‘my money helped make that happen’. Energise Africa offers the same connection, with UK investors helping families access clean, safe electricity.

This reflects a wider shift, with savers increasingly wanting their money to align with their values. Community energy provides exactly that, combining financial, environmental and social impact.

The future is local

Momentum around community energy is building. With new government support through the Community Energy Fund, and the enthusiasm of communities and investors, the sector looks set to grow. 

The 2030 vision – to power over two million homes with community-owned renewables and save millions of tonnes of carbon – is ambitious but achievable. 

What makes the model stand out is how inclusive it can be. 

Unlike large infrastructure projects, community energy opens the door for anyone to take part, whether by investing a few hundred pounds in a share offer or by benefiting from lower bills in their area.

At a time when energy often feels expensive and beyond our control, these local initiatives show there are alternatives. They highlight how tackling climate change can also strengthen communities, cut costs and build trust.



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