As of January 2025, here's a list of suitable funding models for community energy projects in the UK:
Crowdfunding Models
Rewards-based Crowdfunding
Supporters receive non-financial rewards or incentives for their contributions
Example: Discounted energy rates or other community benefits
Equity Crowdfunding
Investors receive shares in the community energy project
Platforms like Ethex have raised over £70m for community enterprises[2]
Peer-to-Peer (P2P) Lending
Community members lend money directly to the project
Often facilitated through online platforms
Donation-based Crowdfunding
Pure donations with no expectation of financial return
Suitable for smaller community projects or initial fundraising stages
Bonds
Community Municipal Bonds
Local authorities issue bonds to finance green infrastructure projects
Abundance Investment platform facilitates these bonds[1]
Green Bonds
Debt securities specifically for financing environmental projects
Can attract institutional investors and environmentally conscious individuals[3]
Grants
Community Energy Fund (CEF)
£10 million fund for kickstarting community energy projects
Covers urban and rural areas, supporting various renewable energy initiatives[2][9]
National Lottery Community Fund
Ongoing national grant programmes for community projects[4]
Bristol City Leap Community Energy Fund
Grants ranging from £500 to £50,000 for local energy projects[2]
West Yorkshire Community Climate Grants
Offers up to £50,000 for climate-friendly schemes[2]
Private and Other Investments
Community Shares
Local people invest directly in community energy projects
Community Shares Booster Scheme offers up to £100,000 match-funding[2]
Institutional Investments
Private equity firms and venture capital funds providing capital for larger projects[3]
Corporate Partnerships
Collaborations between community energy groups and corporations seeking to reduce carbon footprints[3]
Triodos Bank UK Loans
Provides loans from £1 million to £20 million for community energy projects[2]
Thrive Renewables Community Bridge Financial Model
Offers financing for communities to acquire renewable energy technology[2]
Pure Leapfrog Community Energy Fund
Draws on credit facility from Big Society Capital for community energy projects[2]
Younity Community Energy Kickstart
£1.5m bridging loan fund in collaboration with Octopus Energy and Midcounties Co-Operative[2]
These funding models reflect the diverse range of options available for community energy projects in the UK as of early 2025. The choice of funding model often depends on the project's scale, community engagement, and specific local circumstances.
Some Project Types and Models
Community-owned solar farms
School solar installations
Community building solar projects
Leisure centre renewable energy systems
Large-scale community wind projects
More Project Types
Energy Efficiency
Energy efficiency and heating upgrades
Virtual power plants (VPPs)
Battery storage initiatives
Community-scale Projects
Community-scale microgrids
Rural heat solutions
Urban community energy initiatives
Integrated Systems
Social housing energy projects
Multi-technology integrated systems
Local energy markets
Innovative Energy Solutions
Local flexibility markets and schemes
Community-led electric vehicle (EV) charging networks
Fuel poverty alleviation schemes
Community energy visioning projects
These innovative solutions are transforming local energy landscapes across the UK.
Sustainable Transport and Energy Generation
Low-carbon transport initiatives
Promoting sustainable travel options within communities
Hydroelectric schemes
Harnessing the power of water for clean energy generation
Solar carparks (following the French model)
Combining parking facilities with solar energy production
Virtual batteries (aggregated home battery systems)
Leveraging distributed energy storage for community benefit
Community Energy Innovations
1
Demand-side response programmes
Optimising energy consumption based on grid demands
2
Peer-to-peer energy trading platforms
Enabling direct energy exchange between community members
3
Community-owned district heating networks
Providing efficient, localised heating solutions
Technologies in Use
Smart Energy Management
1
Smart building management systems
Optimising energy use in buildings
2
LED lighting
Energy-efficient lighting solutions
3
Electric vehicle charging points
Supporting sustainable transportation
4
Smart meters and energy monitoring systems
Real-time energy consumption tracking
Renewable Energy Technologies
1
2
3
4
5
1
Solar & Battery
2
Clean Heat
3
Virtual Power Plants
4
Demand response
5
EVs / Charging etc
These technologies form the backbone of many community energy projects for sustainable energy capture & use
Some Advanced Energy Solutions
1
2
3
4
1
Compressed air energy storage
2
Rooftop wind turbines
3
Solar thermal collectors
4
Combined heat and power (CHP) systems
These innovative technologies are pushing the boundaries of local & community energy projects, offering solutions for energy collection and storage.
Future Smart Grid and Efficiency Technologies
Smart grid technologies
Enabling efficient energy distribution and management across communities
Vehicle-to-grid (V2G) systems
Utilising electric vehicles as mobile energy storage units
Energy-efficient appliances and equipment
Reducing energy consumption in households and businesses
More Energy Technologies
Insulation materials (for building retrofits)
Mechanical ventilation with heat recovery (MVHR)
Solar carports with integrated EV charging
Tidal energy systems (in coastal areas)
Geothermal energy systems
AI and machine learning for energy optimisation
Internet of Things (IoT) devices for energy management