Welsh Solar Co-op Secures £1.4m to Accelerate Rooftop Solar Rollout

A Welsh community energy organisation Egni Cydweithredol Cyfyngedig (Egni Co-op) has secured a loan of almost £1.4 million from the Development Bank of Wales’s Local Energy Fund to deliver around 2MW of new community-owned rooftop solar projects across Wales.

The Local Energy Fund, a Welsh Government-backed initiative managed by the Development Bank of Wales provides development and capital finance to community-led, low-carbon and renewable energy projects designed to deliver economic, social, and environmental benefits. Paul Cowley, technical officer at the Welsh Government Energy Service, played an important role shaping the initial proposal to secure the latest funding. 

The £12.5 million Local Energy Fund is financed by the Welsh Government through its Climate Change, Energy and Planning Directorate. It offers loans of up to £2 million over terms of up to 20 years to community groups, social enterprises, SMEs and organisations developing locally owned renewable energy projects.

There are many benefits to community-owned solar. It provides clean renewable energy while keeping financial and social advantages local. Not only does it allow renters, low-income households, and those with unsuitable roofs to access solar, but it also generates local jobs, lowers energy bills, and funds community projects. 

The Welsh Government has recognised the important role community solar can play in reducing carbon emissions, lowering energy costs and keeping more of the financial benefit within local communities. Host sites can benefit from lower electricity costs, while co-op members and local communities may benefit through community returns, reinvestment and local ownership.

Surplus revenue can be kept local to support the local economy instead of leaving the area via major utility companies. Income generated from community projects can be used to fund grants, home insulation and fuel advice for vulnerable households. Community solar is ideal for renters, those living in flats, or homeowners whose properties don’t receive enough sunlight. You just need a utility account. Community shares allow residents to invest directly in local green infrastructure, providing an ethical financial return. Communities can take an active role in climate action, deciding exactly how their renewable energy is generated and where surplus funds are spent. 

These initiatives often create local construction/maintenance jobs and offer educational opportunities in the growing green industries. Most important of all, community solar helps tackle the climate emergency by lowering reliance on fossil fuels. Furthermore, localised generation reduces strain on the national utility network, lessening the risk of blackouts. Many community schemes also incorporate land-sharing principles, allowing grazing to continue and encouraging local biodiversity.

The Welsh Government established a state-owned energy company, Ynni Cymru in 2023 to promote community ownership of renewable energy. Just over a year ago the Welsh Government committed £10 million to supporting community-led projects via Ynni Cymru.

In the same way, the UK Government hopes Great British Energy, its new publicly owned energy company, will help drive a similar expansion in community and rooftop solar. The organisation has already supported the installation of rooftop solar PV systems at more than 100 schools and colleges across England, with around 250 expected to benefit by summer 2026.

Egni Co-op was set up by Welsh community energy charity Awel Aman Tawe and focuses on installing community-owned rooftop solar arrays. Based at Hwb y Gors in Cwmgors, Neath Port Talbot, Awel Aman Tawe was established in 1998. More than 1,500 people are now members of its renewable energy Co-operatives.

Egni Co-op has become one of the UK’s leading community rooftop solar organisations, having already installed more than 5MWp of rooftop solar across over 100 sites in Wales. The organisation has raised more than £5 million through a community share offer alongside previous support from the Development Bank and Welsh Government.

Existing Egni solar projects have saved over £1m in electricity costs so far for the sites, helping organisations reinvest money back into local communities. 

Nicola Griffiths, Senior Portfolio Executive at the Development Bank of Wales, said:

“Egni Co-op has already shown what community energy can achieve in Wales, delivering one of the largest portfolios of community-owned renewable energy projects in the UK while generating tangible economic, social and environmental impact. This investment demonstrates how the Local Energy Fund can help organisations bring forward ambitious projects that reduce carbon emissions, support local economies and generate long-term benefits for communities. Egni’s work is a strong example of how community energy can combine environmental action with education and local ownership whilst demonstrating a scalable and impactful approach to the net zero transition.” 

As Egni Co-op is a legally structured not-for-profit Co-operative, it reinvests any surpluses into community and educational activity linked to renewable energy and climate awareness. This includes employing an Education Officer who works with the children on energy education projects and funding an energy data platform, Energy Sparks, which helps schools and pupils better understand and reduce energy use.

The most recent £1.4 million investment will help fund the construction and commissioning of new rooftop solar photovoltaic (PV) installations on sites including schools and public buildings. The installations will cut energy costs, reduce carbon emissions and generate long-term financial returns that can be reinvested into local communities. It is anticipated that the project will generate approximately 1.9 GWh of renewable electricity annually, with around 65% consumed directly on-site by the host buildings. 

Jenny Carlisle, Development Manager at Egni Co-op, said:

“This investment is hugely important because it enables community organisations like ours to continue delivering renewable energy projects at meaningful scale across Wales.
These installations reduce carbon emissions, lower electricity costs for schools and public buildings, and create long-term community benefit. Importantly, the support available through the Welsh Government Energy Service and the Development Bank of Wales makes this type of large-scale community energy investment accessible in a way that would otherwise be extremely difficult for organisations like ours.

We are proud that the projects also support education, local supply chains and wider awareness around renewable energy and climate action. For us, community energy has always been about more than generating electricity. It should also create lasting value for local communities.”

The funding will also support Welsh contractors and suppliers while helping to deliver national carbon reduction targets. Over their lifetime, the solar installations are expected to cut carbon emissions by around 4,500 tonnes.

Egni Co-op's latest investment highlights the growing role community-owned renewable energy can play in Wales’s journey to net zero. By combining clean electricity generation with lower energy costs, local ownership and long-term investment in communities, projects like these demonstrate that the benefits of renewable energy extend far beyond reducing carbon emissions. As support for community energy continues to grow across the UK, initiatives such as Egni Co-op could help more schools, public buildings and local organisations take greater control of their energy future.