A significant paradigm shift

For decades, the UK's energy landscape has been dominated by large-scale, centralised power generation. While efficient, this model has often left local communities as passive consumers, vulnerable to global fossil fuel price volatility and distant decision-making.

However, on February 9, 2026, the UK government, in partnership with Great British Energy (GBE), launched the Local Power Plan. Described as the "largest public investment in community energy in British history," this transformative strategy aims to unlock the potential of local, renewable energy, turning villages, towns, and cities into active participants in the Net-Zero transition.

Backed by up to £1 billion of funding, the Local Power Plan is not just a policy document; it is a blueprint for community wealth, energy resilience, and a cleaner, more democratic energy system.

What is the Local Power Plan designed to do?

The Local Power Plan is a comprehensive strategy focused on scaling up community and local government-owned clean energy projects across the UK. The ultimate vision is that by 2030, every community in the UK will have the opportunity to own a local energy project, whether that be through rooftop solar, onshore wind, or hydro schemes.

The plan is designed to turn the tide on community energy, which has historically been held back by a lack of funding, technical expertise, and supportive regulation.

The Local Power Plan's Key Objectives:

• Cutting Bills: Directly reducing energy costs for community buildings, businesses, and residents.
• Growing Community Wealth: Reinvesting the profits from clean power back into local priorities.
• Strengthening Energy Security: Enhancing resilience by generating power closer to where it is consumed, reducing reliance on external markets.
• Empowering Communities: Giving local people ownership and decision-making power over their energy future.

The Four Pillars of Support

To achieve these ambitious goals, the Local Power Plan brings together four key strands of support, designed to address the specific market failures that have previously hindered local energy projects:

1. Direct Funding and Finance

The £1 billion in funding is targeted at all stages of project development. This includes grants for feasibility studies and planning, as well as construction and operational loans. A key feature is the new Local Investment Fund, which aims to help "crowd-in" private capital, allowing for larger, more impactful projects.

2. Capacity and Capability Building

Many community groups have the ambition, but lack the technical or commercial expertise. The plan introduces a new advisory service and a "Community Energy in a Box" toolkit, providing templates, guidance, and expert support to turn community ideas into investable schemes.

3. Business Model Development

GBE is working with the sector to develop "bankable and repeatable" business models. This moves away from reliance on short-term grants and towards self-sustaining projects. These models include shared ownership, community co-operatives, and smart local energy systems.

4. Regulatory and Policy Reform

The government is working with Ofgem and the National Energy System Operator (NESO) to remove barriers, such as complex grid connection processes, that are easy for large developers, but difficult for local volunteers. This includes consulting on a mandatory shared ownership offer in 2026, ensuring that communities get a slice of larger commercial projects.

Real-world impact: what does this mean for your area?

The Local Power Plan isn't just theory - it is already getting underway. As of February 2026, GBE has invested £5 million for new community energy projects in England, with 53 projects already approved, ranging from solar panels on village halls, to community-owned wind ventures.

Case Study: Caxton Village Hall, Cambs.

We knew we could make a good case for the importance of Caxton Village Hall, and easily show the value of installing low-cost energy here. We found the funding window was open, so we went for it and applied with the mindset, “If you don’t ask, you don’t get.

Case Study: Energise Barnsley

The plan highlights successes like Energise Barnsley, which supported 321 council-owned homes to receive free solar PV assets. In the first year, tenants saved over £40,000 in electricity bills, demonstrating how local energy can directly fight fuel poverty.

Benefits of local ownership

The evidence annex to the plan shows that locally owned energy projects offer superior benefits, compared to commercial alternatives. A study on a 30MW solar farm in Devon showed that while the community-led approach might have slightly higher initial costs, it could generate over £15 million in net local economic value over a 20-year lifetime, compared to lower returns from commercial options. These projects create well-paying, skilled jobs that are dispersed across the country, rather than concentrated in specific industrial hubs.

A New Era of "Plug-in" Solar, and Local Trading

The launch of the Local Power Plan coincided with exciting developments in energy accessibility. The government recently announced that "plug-in" solar panels would be available in shops within months, offering households a simple way to cut their energy bills.

Furthermore, the Plan paves the way for local energy trading. This allows local power projects to deliver direct benefits, moving beyond a model where developers simply provide a small contribution to a village hall, to one where the community directly owns and profits from its own energy.

An invitation to act

The Local Power Plan represents a fundamental, positive change in the UK’s energy strategy. By placing the tools for green energy generation in the hands of the people, the government is building a more resilient, fairer, and cleaner country - from the ground up.

As the government invites community groups and local authorities to come forward with proposals for their areas, 2026 looks set to be the year that community energy finally steps into the light.

💡Does your community have a project idea? It is time to start building your own energy future. Express your interest here. Good luck 👌

Carl Dodd, Property Revolutions Ltd.