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Community Energy for the Future

For too long, we’ve relied on energy produced and owned abroad – empowering oligarchs while multinational oil and gas companies make record profits all whilst our communities face higher bills which force them to make impossible decisions.

With prices reaching record highs, there has never been a more important moment to invest in cheap, clean renewable energy produced and owned right here in the UK.

At the Co-operative Party, we know that ownership matters. And that’s why we back community-owned energy, where local people own and control renewables like solar panels and wind farms that power their communities because we know that community energy organisations can play an instrumental role in tackling the crises the UK faces today – including the ongoing cost-of-living and energy crisis – the collective action taken by organisations has the unique ability to bring people together, to involve them in the project, allow them the opportunity to take control of assets and also, educate.

We know that many of the solutions to the energy crisis require a less centralised approach – ones which are owned locally and where communities can see the benefits. We are calling for a massive investment in community energy to deliver transformative change to the energy system, by building renewable energy capacity and putting communities in control.

Community energy schemes across the UK are empowering local people so they not only have more say on how energy is produced and where any profits are invested but they increase resilience and, in most cases, have more awareness of the key issues being felt locally meaning they are in a better position to adapt and support the most vulnerable members. 

Many of those community energy organisations also look at energy saving – educating their members and local people on what they can do to become more energy efficient. Co-operative networks of households, community organisations and businesses can be highly effective in engaging households and communities on energy saving and retrofit with them encouraging take-up as well as behavioural change. For many this is because of trust, these initiatives are owned and run by the community, which they know has the interests of that area at its heart. Unlike multinational corporate companies who rip off communities only to move on to the next one, local community energy organisations have the trust to support local people and bring about real change. 

And we know for many households across the country, the quality of housing can impact the cost of energy. With notoriously draughty, damp, and cold homes which are increasingly expensive to heat. It is estimated that 19 million homes in the UK fail to meet the basic energy efficiency standards. That is 19 million households who are paying higher bills, are potentially putting their health at risk from living with damp and cold and are unintentionally contributing to the climate emergency. 

Upgrading our homes through retrofitting is one of the best ways we can tackle the ongoing issues regarding energy consumption and efficiency. By ensuring buildings are properly insulated we can help reduce the cost of energy whilst future-proofing homes all while doing our bit for the climate.

Linking in what the idea that a key benefit of community energy companies is the trust they provide – Ireland’s home retrofit program tells us that establishing ‘one-stop-shops’ within communities is critical and can be the key factor in supporting local people to make these changes.

They can provide that advice, advocacy, and retrofit to make it happen. And it is important to remember when we talk about retrofitting, it is not always on the large scale such as full-house refit, in half an hour through low-cost measures you can save a household 10% of their energy use. 

Across the country, co-operatives like Retrofit Works, Carbon Co-op, and Loco Home are already in communities showing us how it can be done – educating local people and acting on retrofitting but we need one in every community. 

Recognising the difference local community energy companies and project are already making to areas is crucial but we want to see more of them up and down the country.

Making that a reality will take political will and resources – our sister party, the Labour Party’s proposed ‘Local Power Plan’ will prioritise expanding access to cheaper, cleaner power across the country through the creation of GB Energy which would allocate resources to support local power in partnership with communities and create a million new owners of energy in the UK.

At the Co-operative Party we are supporting that work and empowering our members to act locally to support the growth of community energy. Whether it is by contacting their local elected politicians to resource community energy or make it easier for projects to get off the ground, getting involved locally if they have schemes in their area or spreading the word of how community energy is already benefiting people and why it is important, we increase the accessibility of it.

Community energy has the power to tackle the crises we face as a society today – including the cost of living and climate change by providing cheaper and cleaner alternatives all whilst empowering local people and creating a more democratic way of working where people can see the benefits to the local economy.


Emma Hoddinott

Emma is the Assistant General Secretary of The Co-operative Party

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Wanted: A Long Term Plan for Home Energy Efficiency

Anthony lives in a 1970s bungalow owned by his local housing association in Greater Manchester.  His home was part of an energy efficiency pilot scheme, where the housing association installed solar panels, triple glazed windows, new doors and cavity wall insulation.  The retrofit works have brought his home up to Energy Performance Certificate B, which means, in energy performance terms, his 1970s bungalow is now pretty much good as new.

It’s clear from talking to Anthony – on a visit with his local Labour MP – that the work had made a real difference to him. Not just cost savings, but also the benefits to his health. He told us:

“The solar panels are great – some days the smart meter hardly moves and it’s keeping my payments down. The triple glazing is amazing; it’s so quiet now, where it was noisy before.
“Overall I feel like the heat stays in my house and I haven’t needed to have it on as much.
“This work has changed my life completely.”

You hear stories like Anthony’s whenever you visit residents who’ve benefitted from investment in the energy efficiency of their homes. And there’s an increasing number of them.  In a quiet revolution, housing associations and councils across England have spent the last few years piloting ways to make homes cosier and greener.  We’ve now got approaches that work in a range of circumstances; what we need is the support to roll these out to more homes.

That means a long-term plan for home energy efficiency.  The reason retrofit has never reached scale before is the stop-start, feast and famine approach to funding that consecutive Governments have adopted.

The Social Housing Decarbonisation Fund, which contributes to the cost of energy efficiency upgrades in council and housing association homes, is a good example. Last Autumn’s bidding round offered up to £800m of match-funding to councils and housing associations.  The round this Autumn is worth just £80m.  A welcome top-up, but not the long-term, predictable funding that councils and housing associations need.

Why do we need support from Government?  Simply, because the cost of energy efficiency works is huge. The housing association sector alone is planning to invest £70bn by 2050 in the fabric, heating systems and components of their existing homes. But fully decarbonising all housing association homes – vital to deliver on net zero ambitions like Labour’s green power mission – will cost at least a further £36bn.

Government support helps us fill that gap.  Every penny the Government invests in energy efficiency is a penny that doesn’t have to come out of budgets for much-needed new social housing.

And there’s consensus across our sector on what’s needed.  We want to see the current Government bring forward the balance of their pledged £3.8bn for social housing decarbonisation as soon as possible.  That would create the certainty our sector needs to continue their good work.

In the longer-term though, we need a much more ambitious plan to deliver energy efficiency improvements in social housing – and in other tenures, too.  There’s broad consensus across those working on greening our housing that a commitment of at least £6bn per year is what’s required to roll-out energy efficiency improvements at the scale needed to tackle our cost of living, energy security and climate change crises.

That’s why – at Labour Housing Group’s retrofit fringe in Liverpool – we were pleased to hear Shadow Minister for Clean Power and Consumers, Jeff Smith MP, reiterate Labour’s commitment to delivering a £6bn per annum warm homes plan by the end of a Labour Government’s first term.

Our homes are fundamental to our health and wellbeing. Decent and affordable homes like Anthony’s must be available for everyone, but right now they’re not.

The lack of a long-term plan for housing has led to the housing crisis we are living through today. The issues we face around housing are systemic. If we don’t act to fix the housing crisis, things will get much worse for people living in England.

A sustained commitment to funding energy efficiency works at scale is a vital part of the long-term plan for housing that we need.

Social housing has a retrofit model, we know what works, but we need the support to roll out that model at scale.  It can start in the social rented sector but moving quickly into the private rented sector, where standards are worst, and into the owner-occupied sector.

So we need support from all political parties to invest in energy efficiency.  It’s the biggest single thing parties can do to make sure that more people benefit from works like those to Anthony’s home; improvements that – in his words – have changed his life.


Rhys Moore

Rhys is the Executive Director of Public Impact at the National Housing Federation

Tracy Harrison

Tracy is the Chief Executive of the Northern Housing Consortium