After Hackney Council set a decarbonization target for the London borough in 2019, a central component focused on improving the energy efficiency of its publicly owned housing, referred to as council estates.
However, for the borough and the wider United Kingdom, the installation of solar-powered microgrids to boost efficiency and cut expenses proved more challenging in practice than in theory.
Although microgrids were functional in commercial and industrial environments, regulations prevented tenants in apartment buildings from easily changing their energy providers. This restriction meant solar energy could only power shared areas, with any resulting savings going solely to the property’s landlord.
Reg Platt, the CEO of the energy service company Emergent Energy, had a deep understanding of the issue from his long career in energy policy and regulation. “My driving goal has always been to accelerate the deployment of these technologies,” he states. “We must develop a financing model for solar PV and other domestic energy technologies that operates independently of government support.”
He established Emergent in 2016 to link apartments and low-income housing with solar energy advantages. He also campaigned for regulatory reforms to permit his firm to supply power directly to consumers from nearby solar installations, enabling them to access more affordable, cleaner energy.
In late 2024, Emergent finalized a contract with Hackney Council to initiate a pioneering U.K. pilot program, now supplying solar power to 10% of the estate’s residents. The aim is to extend this to 60% of residents through ongoing outreach. Participants have already reduced their energy bills by 15%, according to Sarah Young, the borough’s cabinet member for climate change, environment, and transport.
This represents a significant development in the U.K., where energy prices are still approximately one-third higher than before the energy crisis in Europe, triggered by Russia’s invasion of Ukraine.
Microgrids enable a more direct energy supply to consumers, which reduces costs. “A microgrid functions as a miniature version of national or state electricity networks,” explains Ronan Bolton, a sustainable energy professor at the University of Edinburgh. “It creates a more direct link between the energy producer and the consumer, bypassing the traditional supplier. This generates greater economic value by avoiding the retail markup on electricity.”
Community-driven clean energy initiatives are gaining popularity. Data from Community Energy England shows 614 such organizations were active in the U.K. in 2024—a 24% increase since 2021. For instance, a resident-led group in a low-income Bristol area secured £4 million in 2022 to construct a wind turbine. This project, also started without state funding, was partly motivated by resident concerns over escalating energy costs.
The Hackney initiative is council-owned, shielding it from price fluctuations dictated by private energy firms. “The residents receive all the advantages,” says Young, adding that the council anticipates a full return on its £2 million ($2.6 million) investment. She expresses hope that future expansion could allow surplus energy to be used for other green projects, such as battery storage or EV charging points.
The solar project currently covers 27 buildings comprising 750 apartments. However, Platt indicates potential for expansion to the 4.5 million social housing units across the U.K., plus millions more residential apartments.
In January, Edward Miliband, Britain’s Secretary of State for Energy Security and Net Zero, introduced the Warm Homes Plan. This £15 billion ($20 billion) investment aims to reduce bills and emissions by retrofitting millions of homes with insulation, heat pumps, and solar panels. The plan was announced at the Hackney project site. The government also recently pledged £1 billion ($1.3 billion) for community clean energy projects on public buildings like libraries and recreational centers.
Platt is optimistic that this funding will facilitate the project’s growth. “We believe our work is perfectly in line with the government’s objectives,” he remarks. “We offer a method to rapidly scale up solar energy, assist social housing and low-income residents with savings, and simultaneously bring energy assets under public control.”
Furthermore, broad adoption would ensure affordable, clean energy is accessible to all, not just the wealthy. “We are committed to a just transition to net zero,” Young emphasizes. “Therefore, it is critical that the benefits of the energy transition are not limited to those who can afford to pay for it.”
This article was presented by DBT, a sponsor of the TIME Earth Awards, which will be held in London on March 26.