Energy sharing communities are a win-win for UK businesses

UK businesses are increasingly trying to become more sustainable, and with good reason. 

There is of course the obligation we all have to reduce emissions and fight climate change, but in many areas finding more ecologically responsible ways of working is now not only the right thing to do, it’s good business. 

For example, the cost of solar panels has been falling consistently for the last 50 years, and according to the Department for Energy Security and Net Zero (DESNZ), combined offshore and onshore wind is set to be 61.4% cheaper than natural gas in 2025, making renewables a more economical option than fossil fuels. There is also evidence that a majority of consumers would rather buy from sustainable businesses, and are willing to pay more to do so. 

In short, making an effort towards sustainability can help businesses save money, increase profits, and improve their brand profile with customers. And there may now be a way for them to do all three at once. We call it an Energy Sharing Community. 

Saving money and improving brands through energy sharing 

An Energy Sharing Community is where a building such as a school, hospital, or church installs solar panels on its roof to generate free electricity, and then sells surplus power to surrounding households. This provides energy to local consumers at a good price while raising funds for vital public services and building greater ties between them and the surrounding community, but these benefits are also open to businesses. 

Using supermarkets as just one example, there are more than 2,500 stores in the UK with a footprint larger than 1,400m2, and an additional 5,000 with between 280m2 and 1,400m2. Add car parks in which solar-supporting structures could be built, as well as acres of unused warehouse roof space, and it’s clear how just one kind of UK business could generate a substantial amount of renewable power. 

This could not only help them meet their own significant power needs – supermarkets consume around 3% of the UK’s total production and Iceland alone is reported to have spent £70m on energy bills in 2021 – but add value to their business through selling cheap, clean electricity while building better relationships with customers. 

In a nationally representative poll of 2,000 people that we commissioned from YouGov, a staggering 93% supported the idea of energy sharing communities generally, but 57% said they would be more likely to shop at supermarkets that help power the local community with rooftop solar. Using separate YouGov research for comparison, this ranks only slightly below “lower prices” as a reason for choosing a supermarket, and above almost every other factor including “carrying the products I need,” “high quality products,” and “brand loyalty.” 

For consumers, supermarkets, and any other kind of business that has unused roof space, energy sharing communities could be a win-win. 

How the UK can unlock energy sharing for businesses 

One of the most promising aspects of Energy Sharing Communities for public services, consumers, and businesses is that the UK is already only one step away from unlocking their potential. 

At the moment, locally generated solar electricity is subject to the kinds of transmission costs and other levies that would be charged if it had been sent to the high voltage grid before reaching consumers, but this doesn’t reflect what is actually happening. In reality, electricity takes the path of least resistance, and would flow directly from the “prosumer” (a supermarket or other business) to the end user. 

By taking the straightforward step of removing these unnecessary costs, policymakers could incentivise energy sharing for thousands of businesses across the UK. That’s why we’re currently working to set up pilot communities that will prove this model’s massive potential for the country’s energy sector, public services, and businesses. Given the chance, energy sharing  could connect customers to cheaper, greener energy, and  continue to help businesses connect with their customers. 

To find out more about Energy Sharing Communities, take a look at: How we hope to empower communities across the UK.