Community energy – shared ownership
Published 4 November 2026
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This publication is available at https://www.gov.uk/government/publications/energy-independence-bill-factsheets/community-energy-shared-ownership
Factsheet relating to the Energy Independence Bill.
Summary
Shared ownership is a type of community energy where a community energy group has the opportunity to invest in a renewable energy project, and where the community’s share of the development is then considered community owned. This gives communities a greater say over the project, and a chance to earn revenues which can be spent on local priorities, like cutting bills or supporting local schools, services and social clubs.
To increase shared ownership in new clean energy projects, we are legislating to amend the Infrastructure Act 2015 (IA2015) to enable the Secretary of State to require designated promoters and operators of qualifying renewable electricity generation facilities of 1 megawatt (MW) generation capacity or more to offer up to 20% ownership of a facility to local individuals and communities through subsequent secondary legislation. These changes will extend opportunities for community participation and ownership across a wider range of energy projects.
Why are we legislating?
In the Local Power Plan published this year, government committed to develop detailed proposals on the use of existing powers in the IA2015, which would give individuals in a community, or groups connected with a community, the right to invest in new generation facilities being developed in their area.
The IA2015 established powers for the Secretary of State to introduce a Community Electricity Right, enabling regulations that would give individuals and community groups the right to purchase a stake in qualifying renewable electricity generation facilities located in or near their community.
The policy originated from the 2014 Community Energy Strategy and the work of the Shared Ownership Taskforce. It was intended as a backstop power if voluntary shared ownership arrangements failed to deliver. It was not taken forward following the change in administration in 2015.
The government considers that the existing cap of 5% may not provide communities with a sufficiently meaningful opportunity to participate in and benefit from renewable energy projects.
What are the government’s objectives with this measure?
Government is committed to increasing shared ownership in new clean energy projects, so that communities can benefit directly and play a meaningful role in the transition to net zero.
Ownership is a transformative tool to build the wealth of local areas—giving people a stake in the places they live and generating pride, respect and local prosperity that can’t be dismantled.
How will this measure deliver these objectives?
The Bill amends the Infrastructure Act 2015 to enable the Secretary of State to make secondary legislation requiring a minimum offer amount of up to the equivalent of 20% of the capital costs of development of the qualifying facility, an increase from the existing minimum of 5%. The precise percentage to be required would be determined through secondary legislation and developers would remain free to offer a larger stake voluntarily if they wished.
The Bill also amends the Infrastructure Act 2015 to enable Secretary of State to reduce the threshold of projects that will be required to offer stakes in their facility from 5 MW generation capacity to 1 MW generation capacity. Reducing the threshold will enable a wider range of renewable electricity projects to fall within scope of future shared ownership requirements, thereby increasing opportunities for local communities to participate in the energy transition.