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Community projects could generate between 0.5GW and 3GW of power by 2020, according to a government strategy published on Monday.
By 2015, commercial developers should be routinely offering people “some level of ownership” of energy projects in their area, according to the Community Energy Strategy.
The Department of Energy and Climate Change (Decc) is also planning to double the size of project eligible for a feed-in tariff, from 5MW to 10MW. That is expected to make it easier for communities to finance schemes.
As well as energy generation, the strategy encourages communities to get involved in cutting consumption, managing demand and collectively switching tariffs to save money or carbon emissions.
Decc is setting up a Community Energy Unit to build the principles of the strategy into future policy.
Greg Barker, climate change minister, called for a “decentralised energy revolution” to increase competition. He said: “We want to help more consumers of energy to become producers of energy and in doing so help to break the grip of the dominant big energy companies.”
Energy secretary Ed Davey focused on the opportunity for people to cut their energy bills. He said: “We’re at the turning point in developing true community energy.
“The cost of energy is now a major consideration for household budgets, and I want to encourage groups of people across the country to participate in a community energy movement and take real control of their energy bills.
“Community led action, such as collective switching, gives people the power to bring down bills and encourage competition within the energy market.”
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