In its second oral evidence session on “Unlocking Community Energy at Scale,” held on 2 April 2025, the Energy Security and Net Zero Committee heard a unified message from across the community energy sector.

From rooftop solar on schools to Energy Local clubs, the projects are ready. But the market conditions—export pricing, procurement processes, regulatory rules—are not. If the Government wants to deliver on its 8 GW ambition for community power, it will need to fix more than funding.

Key participants included Alistair Macpherson, Chief Executive Officer at Plymouth Energy Community; Pete Capener MBE, Interim Chair at Community Energy England; Afsheen Kabir Rashid MBE, Chief Executive Officer and Co-Founder at Repowering London; Steve Shaw, Director at Power for People; Dr Mary Gillie, Founder and Director at Energy Local; Benedict Ferguson, Co-Executive Director at Community Energy Wales/Ynni Cymunedol Cymru; Stephen Harris, VP of Energy Markets and Optimisation at OVO Energy.

Here are the key issues that dominated the session.

Community Energy Still Can’t Rely on Stable Export Revenues

Without the Feed-in Tariff, most community energy organisations have had to fall back on export Power Purchase Agreements (PPAs)—contracts to sell excess electricity to the grid. These PPAs, however, are short-term and offer little price stability.

“One-year PPAs that you purchase on the wholesale market do not give you the long-term security.” — Pete Capener, Community Energy England

“In the post-subsidy world… we have been dependent on power purchase agreements.” — Alistair Macpherson, Plymouth Energy Community

A Community Export Guarantee Is Needed—With a Floor Price

The current Smart Export Guarantee (SEG) is too limited. Witnesses called for a new mechanism that provides long-term price security to community-scale generators.

“If we had a community smart export guarantee, that would provide our project with a floor price and give us the revenue certainty.” — Alistair Macpherson

Local Authorities Are Eager—But Can’t Take the Risk Alone

Even where councils want to support local projects, they’re hesitant to enter 20–30 year deals without Government backing or underwriting.

“That deal looks like it gives the local authority a really good price for power in the first eight years… and the local authority is going, ‘Why do I take that risk?’” — Alistair Macpherson

Procurement Is Still a Major Obstacle

Despite available templates, legal and procurement teams in local authorities often repeat due diligence unnecessarily, slowing or stopping progress.

“It is just a waste of time, really.” — Afsheen Kabir Rashid, Repowering London

“Standardisation in both approaches… would help immensely.” — Pete Capener

Social Value Isn’t Reflected in Market or Procurement Logic

Community groups support education, local participation and those facing fuel poverty —yet those benefits aren’t captured in pricing or tenders.

“We deliver true meaningful benefit in the communities. That needs to be paid for.” — Afsheen Kabir Rashid

“People hear more of the energy than they hear about the community.” — Polly Billington MP

Energy Local Clubs Show What’s Possible—But Are Under-Supported

Schemes like Energy Local help households buy local clean power at fair prices—often saving vulnerable customers 25% or more. But regulatory barriers, a lack of supplier support, and limited implementation of key reforms like P441 continue to hold them back.

“It is a small number of residents involved in the trial, but they have seen up to 25% savings on their energy bills.” — Afsheen Kabir Rashid

“We are definitely seeing a change, and part of that is harnessing that community endeavour of using their network, their generation, and feeling that they are doing something together.” — Dr. Mary Gillie, Energy Local

Community Energy Can Deliver Grid Services—But Can’t Access the Market

From batteries to demand response, community groups are well-placed to provide flexibility—but current contracts and platforms don’t accommodate them.

“From a community perspective, it is quite difficult for us to access those markets.” — Pete Capener

There’s Already Money in the System—It’s Just Not Reaching Communities

OVO Energy pointed out that mechanisms like REGOs and supplier licence exemptions divert hundreds of millions in value—often without supporting new community energy generation.

“A very small proportion of that has gone to supporting new community schemes.” — Stephen Harris, OVO Energy

GB Energy Could Help Standardise and Scale the Sector

Witnesses supported creating a community energy unit within GB Energy to manage standard contracts, guidance, and replication models.

“GB Energy can clearly play an important role in a community unit.” — Pete Capener

The Local Electricity Bill Still Lacks a Government Response

Steve Shaw, Director of Power for People, closed the session by challenging the Government’s silence on community supply reform—despite wide parliamentary support.

“Since the election, we have not heard anything about it from them.” — Steve Shaw

Final Takeaway: This Is a Fixable Problem

The evidence was consistent: community energy is being blocked not by technology, or even capital, but by outdated market design and a lack of enabling infrastructure. As the Select Committee continues its inquiry, it now holds a clear picture of the tools needed:

– Long-term export price certainty
– Underwriting of local authority PPAs
– National procurement frameworks
– Recognition of social value
– Regulatory reform to allow local supply

The community energy sector has the capability and ambition to contribute significantly to the UK’s energy future. What is now required is the leadership to consolidate a clear framework to enable it.