What is a Renewable Energy Community, in plain words
Citizens, businesses and public bodies sharing renewable energy produced close to home. Here is how an energy community works and who can join.
Published on 2 min read
A Renewable Energy Community (REC) is a group of people, businesses and public bodies that come together to produce and share energy from renewable sources in the same area. It is not a new supplier and it is not a plant: it is a legal entity, with bylaws and rules, that connects those who produce clean energy with those who consume it, close to where it is produced.
Who can join
Citizens, families, blocks of flats, small businesses and public bodies can join, as long as they are within the community’s geographical area and meet the requirements set by the law and the bylaws. The area is defined by the electricity grid: connections must be linked to the same primary substation.
Three profiles live side by side in the community:
- Producers, who make the energy of a renewable plant available, for example solar PV.
- Consumers, who have no plant and use the energy shared by the other members.
- Prosumers, who produce and consume at the same time.
You do not need a plant to join: you can take part simply as a consumer.
What “shared energy” means
Energy does not travel on private cables: everything stays on the public grid. Shared energy is the share of renewable energy that the community’s plants feed into the grid and that, in the same hour, is consumed by the members. The more consumption shifts to the hours when the plants are producing, the more energy is shared. It is this share that generates the incentives.
What does not change for you
You do not need to change supplier or meter: you keep receiving your bill from the company you already have a contract with, and you are free to choose it. Membership is voluntary and, if you move house or leave, it ends as set out in the bylaws, without losing the benefits accrued up to that point.
Why it pays off
The purpose of an energy community is not to make a profit, but to bring environmental, economic and social benefits to its members and the local area. In practice: incentives on shared energy, more conscious energy spending and more renewable energy used close to where it is generated. The real value depends on how much energy is produced, how the members consume it and the sharing rules the community chooses: that is why it is worth running the numbers before you start.
Want an independent opinion?
We have no plants to sell: our only interest is that you make the right choice. If you want to know what sharing energy could be worth in your case, start with an analysis with Lampo AI. If you are thinking of starting or running a community, see how we support you with energy communities.
