MPs ‘unconvinced’ UK Government will meet community energy target

The UK Government must make changes to the law if it is to meet its targets on community ownership of energy, a cross-party committee of MPs has concluded.

The Commons’ Energy Security and Net Zero Committee urged ministers to designate community-owned projects as a strategic priority to speed up grid connections.

It has also said the minimum stake onshore and offshore renewable developers offered to communities should be lifted to 20 per cent, and implement the right for communities to take a minimum 20 per cent stake.

It warns such initiatives will be left behind without action, with MPs “unconvinced” the right frameworks are in place to deliver the target of 8GW coming from community energy generation by 2030.

Committee chair Bill Esterton said: “Across the UK, communities are putting in huge effort and resources to host large-scale renewable projects. But they face a system stacked against them, and too often they don’t share the benefits.

“This has real consequences for the UK’s clean energy targets and for our economy. Public support for the energy transition and local investment opportunities could be undermined, with the risk of energy bills staying higher than they need to for longer.”

The committee says the incoming Energy Independence Bill – which was announced at part of the King’s Speech – must promote community energy.

MPs are also seeking a regulatory framework to allow community energy generators to sell electricity to local consumers within the next six months; for GB Energy to provide financial, legal and technical advice; and for a framework to establish the roles and responsibilities for companies, regulatory bodies, agencies and organisations to achieve the target.

The UK Government made a commitment in its Clean Power Action Plan to deliver 8GW of locally and community-owned energy by 2030, well up from the 411MW produced in 2025.

The report concluded that the lack of a pricing mechanism for community projects was one of the biggest barriers to future growth, and urged ministers to develop a mechanism that makes selling to the grid financial viable.

It also said the smart export guarantee should be replaced with a community energy export guarantee to help raise finance for projects. This should be underwritten by government, it added.

The committee launched this inquiry in November 2024 in recognition of the relatively small community energy sector, despite strong public support for such projects.

Among others, MPs heard evidence the Point and Sandwick Trust about wind farms and battery projects on the Isle of Lewis. The largest community-owned windfarm in the UK, all of its dividends have been reinvested in community projects and organisations.