Egni Co-op, a community energy organisation developing rooftop solar, has secured a loan of almost £1.4m from the Development Bank of Wales to deliver around 2MW of new community-owned rooftop solar projects across Wales.
The money will support the construction and commissioning of new rooftop solar on sites including schools and public buildings, helping reduce energy costs, lower carbon emissions and generate long-term community benefits.
The co-op – full name Egni Cydweithredol Cyfyngedig – says the project is expected to generate approximately 1.9 GWh of renewable electricity annually, with around 65% consumed directly on-site by host buildings.
Existing Egni solar projects have saved over £1m in electricity costs so far for the sites, the co-op says, helping organisations reinvest money back into local communities.
The investment will also support Welsh-based contractors and suppliers while contributing to carbon reduction targets, says the Development Bank. Over the lifetime of the assets, the installations are expected to reduce carbon emissions by approximately 4,500 tonnes.
The funding has come from the Local Energy Fund, a Welsh government-backed initiative managed by the bank, which 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 manager, Welsh Government Energy Service, played an important role shaping the initial proposal, the bank added.
Egni Co-op, which was set up and is managed by Awel Aman Tawe (AAT), has already installed more than 5MWp of rooftop solar across over 100 sites in Wales. It has raised more than £5m through a community share offer alongside previous support from the Development Bank and Welsh government.
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-ops.
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As a legally structured not-for-profit co-operative, Egni reinvests 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.
“This investment is hugely important because it enables community organisations like ours to continue delivering renewable energy projects at meaningful scale across Wales,” said Egni’s development manager Jenny Carlisle.
“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.”
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.”
The £12.5m Local Energy Fund is financed by Welsh government through the climate change, energy and planning directorate. Loans of up to £2m are available with terms up to 20 years for Community groups, social enterprises, local ownership models and SMEs.
