How is the energy generated from a community solar programme distributed?

Community solar programmes in the UK generate electricity from solar farms owned and managed by local groups or communities rather than individual households. The distribution of this energy and its benefits happens through several structured ways designed to reach UK homeowners, small business owners, and the wider community.

Direct Electricity Supply and Grid Export

• The solar panels convert sunlight into electricity onsite.
• This electricity can be used directly within local community buildings or homes connected to the solar installation.
• The surplus energy generated, beyond local consumption, is exported to the national electricity grid.
• This means the generated power feeds into the wider UK grid, helping to supply clean electricity to other homes and businesses nearby.

Energy Credits and Financial Benefits for Participants

• Community solar participants, such as homeowners and small businesses who buy shares or subscriptions in the solar project, receive credits or payments based on the amount of electricity the community solar farm produces.
• These credits often appear as reductions on energy bills or direct financial returns, reflecting the energy generated for them.
• This system allows participants who cannot install solar panels on their own property (e.g., renters, flats, or shaded homes) to benefit from renewable energy.

Community Benefit Funds and Local Projects

• Importantly, many UK community solar farms operate as community benefit societies.
• They generate surplus revenue by selling electricity and reinvest this surplus into local projects.
• These projects might include addressing fuel poverty, improving energy efficiency in homes, supporting education, or climate initiatives.
• For example, a portfolio of eight solar farms recently brought into community ownership across England and Wales is expected to generate around £20 million in surplus funds over their lifetime, funding local programmes such as homelessness support and food aid.

Practical Examples in the UK

• The Kent Community Energy solar farm near Sittingbourne, a 5 MW facility, is community-owned and supplies renewable power both locally and into the grid.
• In 2023, several solar farms (total 36 MWp capacity) were transferred to community ownership, boosting community-owned solar capacity by 20% in England and Wales.
• These farms collectively power nearly 13,000 homes and contribute to significant carbon emission reductions, showing how distributed solar energy supports local residents and businesses.

Key Pros and Cons of Community Solar Distribution

Pros:

• Provides access to renewable energy for those unable to install solar panels themselves.
• Generates local green electricity, reducing dependence on fossil fuels.
• Offers financial returns and energy bill savings to participants.
• Funds community programmes improving social and environmental well-being.
• Supports the UK’s net zero emissions goals by decentralizing clean energy generation.

Cons:

• Participants do not receive electricity directly to their properties but benefit financially or via credits.
• Initial investment or subscription fees may be required.
• Distribution depends on efficient grid connections and local infrastructure.
• Community solar projects can take time to develop and require management from the community.

Common Mistakes to Avoid

• Assuming community solar means direct physical electricity supply to your home; it is usually through the grid and realised financially.
• Overlooking membership requirements or community share purchase commitments.
• Expecting immediate returns; community solar benefits often build up over time.
• Neglecting to check the credibility and governance of community solar projects before investing.

Practical Advice for UK Homeowners and Small Businesses

• Explore opportunities to join local community solar schemes or co-operatives as shareholders or subscribers.
• Review the terms of the community benefit society to understand how surplus funds and energy credits are allocated.
• Consider community solar as part of a broader energy strategy that might include energy efficiency improvements.
• Stay informed about UK government support and policies encouraging community energy, such as recent commitments of funding to community energy groups.

Pooling resources and distributing generated energy through the national grid coupled with financial and social benefits, community solar programmes enable UK homeowners and small businesses to share in clean energy generation—even if they cannot install solar panels themselves. This model strengthens local communities while contributing significantly to national green energy targets.