The value of shared ownership
Shared ownership offers more than just a financial return – it represents a genuine opportunity for communities to participate in decision making and shape the energy projects in their local areas. Research shows that renewable energy projects with shared ownership models often enjoy higher levels of acceptance and trust from local people compared to projects with only community benefit funds. This is because shared ownership creates a sense of fairness and inclusion, allowing communities to move beyond being passive recipients to becoming active partners.
The benefits extend beyond money. Participation in shared ownership enables communities to develop skills in governance, project management, and technical knowledge – skills that empower them to lead future initiatives and strengthen local capacity. Examples across the UK highlight how shared ownership can deliver tangible social and environmental outcomes, from supporting fuel poverty initiatives to enhancing biodiversity projects.
Barriers limiting shared ownership uptake
Despite these advantages, shared ownership remains out of reach for many communities. Regen identifies several key barriers that must be addressed if shared ownership is to become a widespread and effective part of the energy transition.
Firstly, financial barriers are significant. Communities often face difficulties in securing affordable debt finance and bridging funding gaps between initial investment and long-term financing. Without access to low-cost finance, many are priced out of meaningful participation.
Secondly, capacity constraints limit engagement. Many communities lack the technical, legal and financial expertise needed to negotiate and manage shared ownership arrangements. This is especially true for low-income or marginalised groups, who may also struggle to commit the time required to engage with lengthy and complex project development processes.
Thirdly, the voluntary nature of shared ownership offers little incentive for developers to proactively involve communities. Without clear policy drivers, shared ownership projects are often an afterthought, if offered at all. Administrative complexities and the absence of standardised frameworks add further challenges for both developers and communities.
Policy action needed to unlock shared ownership
Regen believes that unlocking shared ownership at scale requires a clear and coordinated government approach that combines commercial incentives with robust community support. Key measures include:
- Immediate introduction of strong commercial incentives for developers, with a phased mandate for shared ownership on projects post-2030 to ensure genuine delivery
- Embedding community and shared ownership as material considerations within the planning system, supported by clear definitions, safeguards and transparent processes
- Prioritisation of shared ownership projects in grid connection queues, recognising their social and economic value
- Comprehensive financing support, including no or low-cost finance, loan guarantees and bridge funding to help communities overcome financial barriers
- Establishment of capacity-building programmes that provide expert guidance, technical support and standardised templates to reduce administrative burden and streamline processes
These measures are essential to ensure that shared ownership is not just a policy ambition but a practical reality that benefits communities and supports the pace of renewable energy deployment.
Our ongoing commitment
At Regen, we remain committed to supporting the development of shared ownership models that deliver meaningful community benefits and strengthen local capacity. We will continue to work with government, developers and community partners to ensure that shared ownership contributes to a just and inclusive energy transition, where communities are empowered to play a full role in shaping their energy future.
To read our thoughts on community benefits, which was also explored in the DESNZ working paper, click here.
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