Insight
The evolution of Community Energy, and what to consider when taking Community Energy into the mainstream
Bath and West Community EnergyBWCE’s Head of Marketing and Communication, Julia O’Connor caught up with Managing Director, Pete Capener, to discuss the evolution of Community Energy, and what to consider when taking Community Energy into the mainstream – see the Q&A below.
Q/ Pete you’ve been involved in community energy for many years. Can you reflect on what has changed the most since you first became involved?
A/ When Bath & West Community Energy was founded in 2010, we had the Feed-in-Tariff (FiT a government-backed policy that paid renewable energy producers a guaranteed, above-market price for electricity they generate and feed into the grid).
This meant that we had long-term contracts to sell electricity and good prices. The FiT was removed in 2019, since then it has been a lot harder to develop new renewables projects, although we are starting to make headway. On the other hand, community energy has seen rapid growth in innovation and new services, covering local energy supply and home energy efficiency services. We have also seen a significant growth in interest in community energy and at last are getting political support that is starting to feed into practical resources, and hopefully policy and regulatory change.
Q/ What do you see as the major challenges between now and 2030 in community energy becoming a mainstream part of the UK’s energy system?
A/ We still need improvements in the core business model for developing community renewables projects. Our projects suffer from having to compete in a market with massive offshore and onshore renewables; a small-scale community project cannot compete with their economies of scale. The market doesn’t currently recognise the additional social, environmental and economic value that community energy generates. On top of which, large scale renewables can draw on guaranteed long term pricing through the national auction process run by government. There is no equivalent for community scale renewables.
Q/ Community energy is often described as local. Can it become large scale without losing what makes it special?
A/ Yes, but it needs to be done with care. This is an ongoing tension; we need scale to create a skilled community energy workforce that can deliver high-quality outcomes as well as deliver significant impact. We also need to keep contact with the grassroots community networks that make community energy what it is. This is a funding challenge as well as just a scaling issue. The social value and community benefit delivered by deep community engagement needs recognition alongside the local economic impact of community energy’s radically different approach to business on energy.
Q/ What misconceptions about community energy and renewable energy would you most like to challenge?
A/ Community energy – many believe that it’s all voluntary based, marginal, nice to have and will never amount to anything significant, rather than it being viewed as a serious community business.
Renewable energy – the lights won’t go out when the sun doesn’t shine and the wind doesn’t blow!
We will need to address these in our communications and within the community conversations we have, sharing the impact and innovations within the sector.
Q/ How does BWCE/the community energy model differ to commercial operations?
A/ As a not-for-private-profit and democratically controlled organisation that recycles surplus back into local communities, we can offer accountability and local control. We can build profile, trust and participation in a way that commercial organisations cannot. As a locally based organisation, we are closer to our community and understand its local area and the community networks within it. We can deliver an integrated community offer that links generation, supply and demand in a way that is more difficult for remote commercial organisations. An integrated offer that has the potential to drive active participation in the energy transition by linking energy and the climate to day-to-day concerns around the cost of living.
Q/ How does community energy create different attitudes towards renewable energy and to energy use?
A/ We know that people with solar panels on their roof adapt their energy use to take full advantage of their self-generated solar electricity, because it’s cheaper and saves them money on their electricity bills.
Community energy can create a similar relationship with local renewables through investment and/or the purchase of cheaper electricity.
We are looking to build a connection for people locally: that’s ‘our’ wind turbine on the hill or ‘our’ solar panel in the nearby field.
Our members tell us that they are taking action on climate as a result of joining BWCE, but we are also keen to test the degree to which a different and more positive relationship with local renewable energy can help shift people’s attitudes and behaviours around energy.
Q/ In your experience how do we move people from supporting community energy in principle to becoming investors, volunteers, champions or members?
A/ The problem is the lack of awareness of community energy and the challenge of how to communicate it in a compelling and engaging way.
However, once we get in conversation with people about the community energy model, with its approach to sharing benefit locally rather than seeing it leak out of the area into the balance sheets of multinational corporates, we find the story can be compelling. We often get asked, where’s the catch? This gives us the opportunity to evidence the local impact of our radically different way of working.
Investing in community energy, for those that can afford to, also provides ethical opportunities to support local action on climate change, benefit local communities and receive a modest return.
Q/ What advice would you give someone setting up a community energy project today?
A/ Talk to lots of people locally, it can’t be done by one or two people. Make sure the people you get closely involved have the skills and experience you need – technical, commercial, legal, communications and community backing. Decide what you want to have achieved over five years, whether big or small and plan accordingly. Make sure you have the right partnerships to make that vision work across public, private and community sectors.
According to Community Energy England’s State of the Sector report 2025 there are 614 Community Energy organisations across the UK, a growing sector with a 24% increase in organisations since 2021. This means there is a wealth of knowledge, skills and experience across the UK, and it’s a sector that welcomes collaboration and partnership working with a will to see projects succeed.
Q/ If we’re sitting here during Community Energy Fortnight in 2036, what would you hope we’re celebrating – and what would have to happen between now and then to make that vision a reality?
A/ Community renewables contributing 10% of all new onshore wind and solar and engaging with millions of households across the UK in delivering lower fuel bills and carbon reduction.
Q/ BWCE have held several screenings of the film People’s Emergency Briefing on Climate and Nature within our team and our local community, something we would recommend others to do if they haven’t already. Presenter Chris Packham finishes his summing up of the film’s findings with the line ‘now it’s over to you!’ If you were to advise people of one impactful action they could take, what would it be?
A/ Talk to family, friends, neighbours and work colleagues about community energy and get involved with local community energy action.
We’re all in this together so we may as well act together to increase our impact for our local communities and the planet. #UpTheEnergy #CEF26
BWCE believe The Future of Energy is Local!