Shared Self-Consumption – Community Solar Projects

As the United Kingdom moves towards a more sustainable and decentralised energy system, shared self-consumption is emerging as an effective model to help communities generate and consume their own clean electricity. With the growing popularity of solar photovoltaic (PV) systems and a strong policy push for renewable energy adoption, this approach offers an inclusive, practical and cost-effective solution for both urban and rural environments.

Shared self-consumption enables multiple individuals or households to benefit from a single solar power installation. Rather than equipping each property with its own panels, a centralised solar system is set up in a shared location—such as the roof of a block of flats or a community-owned field—and the electricity generated is distributed among participants. This model enhances energy equity, reduces costs and fosters a sense of community ownership and cooperation.

In the UK, where many residents live in shared buildings or homes without suitable rooftops, the potential for shared solar schemes is significant. Recent government initiatives, local council programmes and community energy groups have all contributed to the growing momentum behind this model.

What Is Shared Self-Consumption?

Shared self-consumption refers to the collective use of electricity produced by a single renewable energy source, usually solar panels, by a group of users. These could include residents of the same apartment block, neighbours living in close proximity, or members of a housing cooperative. The electricity generated is shared in line with predefined agreements, often tracked by smart meters and digital energy management platforms.

There are different ways this energy sharing can be structured. It may involve physical energy distribution within a local microgrid, or it might operate through virtual systems that allocate portions of the electricity generated to individual user accounts, as reflected in their electricity bills.

This model is especially useful for people who cannot install solar panels on their own homes, such as renters, flat-dwellers, or those living in shaded or conservation areas. By pooling resources and infrastructure, communities can gain access to renewable energy that would otherwise be out of reach.

The UK Context: Why Shared Solar Makes Sense

The UK has seen significant growth in solar power over the last decade, yet access remains uneven. A substantial portion of the population lives in rented accommodation or buildings with shared ownership, where individual installations may not be viable. Here’s where shared self-consumption steps in as a powerful alternative.

Government programmes such as the Smart Export Guarantee (SEG) and various Local Energy Hubs have laid the groundwork for community-based renewable energy initiatives. Moreover, the Climate Change Committee and Ofgem have both recognised the importance of democratising access to clean energy as part of the UK’s net-zero transition.

As part of the Levelling Up agenda and in line with social equity goals, local authorities are increasingly supporting projects that prioritise low-income households and under-served communities. Shared solar schemes have already been piloted in cities like London, Bristol, and Edinburgh, often led by community energy organisations or housing associations.

Financial Advantages of Shared Self-Consumption

A major driver for shared self-consumption is the opportunity to reduce energy bills in a reliable and sustainable way. By investing collectively in solar installations, communities can significantly lower the upfront costs per household. Maintenance costs are also shared, making the overall investment more manageable and efficient.

Additionally, electricity generated on-site and consumed locally reduces transmission losses and grid reliance, which further improves the economics of solar energy. Participants can enjoy long-term savings, predictable pricing, and resilience against market volatility.

Some shared solar schemes are linked to local supply models where surplus electricity is sold to the grid, generating revenue that can be reinvested in community projects or used to offset participant bills. In many cases, these schemes are eligible for grants or low-interest financing from local councils, social enterprises or national programmes.

Environmental and Community Benefits

The environmental advantages of shared self-consumption are significant. Every kilowatt-hour of solar electricity used replaces electricity that would have otherwise been generated from fossil fuels, contributing directly to emissions reductions and improved air quality.

But beyond the environmental gains, there are important social and community impacts. Shared solar initiatives encourage collaboration among residents, promote energy literacy, and help build stronger, more connected neighbourhoods. They also create opportunities for community engagement and job creation in the green sector.

In addition, shared self-consumption can support vulnerable populations who may struggle with fuel poverty. By giving these households access to low-cost renewable electricity, the model contributes to a more just energy transition.

Solar Installations in Flats and Housing Blocks

One of the most promising applications of shared self-consumption in the UK is in multi-residential buildings. A growing number of council estates and housing associations are exploring ways to turn unused roof space into productive solar generators that serve all residents.

Typically, solar panels are installed on the roof of the building, and the electricity is distributed either physically through internal cabling or virtually through energy billing platforms. Residents benefit from discounted electricity rates or fixed allocations of clean energy, depending on the model used.

In projects like these, coordination and transparent communication are key. Agreements must clearly define how energy is allocated, how costs are shared, and what happens when a resident moves out. Technological tools such as building energy management systems and smart metering are essential to make these schemes work seamlessly.

Neighbourhood Solar Projects

Shared solar doesn’t have to be limited to single buildings. Neighbourhood-wide initiatives are also gaining popularity, particularly in suburban or semi-rural areas where there is space for larger installations.

In these setups, a central solar array—often situated on a community centre, local school, or public building—provides electricity that is then virtually shared among participating households. This model is supported by community benefit societies or local energy cooperatives that manage operations and finances.

Cities like Oxford and Nottingham have implemented community energy programmes where neighbours collectively invest in renewable projects. The energy produced is either used locally or sold through partner energy suppliers who return the value to the participants via bill credits.

Policy, Regulation and Challenges

While the concept of shared self-consumption is promising, several regulatory and logistical challenges still need to be addressed. One of the key issues in the UK is the lack of a unified legal framework that specifically facilitates energy sharing between households on a small scale.

Although the Smart Export Guarantee (SEG) supports selling excess solar energy to the grid, it doesn’t yet provide robust mechanisms for multiple users to share and benefit from one system. Also, current metering infrastructure and supplier regulations can make it difficult to implement real-time energy sharing across different accounts.

To overcome these hurdles, several advocacy groups and policy think tanks are calling for reforms. Suggested measures include the legal recognition of energy sharing arrangements, support for virtual power purchase agreements (PPAs), and better integration of local supply models.

Technical barriers, such as outdated grid infrastructure and limitations in data management, also pose challenges. However, smart grid innovations and digital platforms are rapidly evolving to support these new models.

The Role of Local Authorities and Community Energy

Local councils across the UK are uniquely positioned to support shared self-consumption initiatives. By leveraging public buildings, offering planning support, and facilitating funding applications, they can enable more projects to take root and thrive.

Many councils are already working with community energy organisations to pilot shared solar schemes, particularly in areas with high levels of fuel poverty. These partnerships allow for the creation of scalable, replicable models that can be tailored to the needs of different communities.

Community energy groups, such as Repowering London and Energy4All, play a critical role in delivering education, organising stakeholders, and maintaining transparency. Their experience ensures that projects are not only technically sound but also socially inclusive and democratically governed.

Looking Ahead: A Future with Shared Solar Power

The momentum behind shared self-consumption in the UK is building. With supportive policy reforms, continued innovation and strong community engagement, it’s possible to see a future where every neighbourhood, no matter its income level or housing structure, can benefit from clean, local energy.

Advances in battery storage, energy tracking apps, and peer-to-peer trading platforms will further enhance the value of shared solar. As more homes electrify their heating and transport, the demand for flexible, decentralised energy systems will only grow.

To fully unlock this potential, a coordinated national effort is needed—combining legislative updates, infrastructure investment, and public awareness campaigns. If done right, shared self-consumption could become a cornerstone of the UK’s energy transition, blending environmental responsibility with social equity.

FAQs about Shared Self-Consumption

1. What is the difference between shared self-consumption and community solar?
Community solar typically involves off-site solar farms with subscribers receiving bill credits. Shared self-consumption usually refers to on-site or nearby installations where the electricity is directly shared among participants.

2. Can renters participate in shared self-consumption schemes?
Yes. Many schemes are designed to include renters and those without ownership of their property, provided there’s an agreement with the building owner or housing provider.

3. How is energy allocated in shared systems?
Energy is distributed based on agreed percentages, usage patterns, or financial contributions. Smart meters and digital platforms help monitor and adjust allocations in real time.

4. Are there government grants for shared solar projects?
Yes. Local councils, devolved governments, and national schemes like the Green Homes Grant (where available) may offer support for eligible projects.

5. What happens if a participant moves house?
Most schemes include flexible terms. In some cases, a participant’s share can be transferred to a new address or reassigned to a new resident within the building or scheme.