The Department of Energy and Climate Change (DECC) has launched a £10m fund to back the Urban Community Energy Fund, reNews has reported.
The fund allows groups to bid for grants of up to £20,000 or loans of up to £130,000 to kick-start projects.
The community energy sector will also see its first major shake-up since the launch of the Community Energy Strategy in January this year with projects to get further support under the feed-in tariff scheme.
Changes include registered charities being entitled to the same benefits as other community groups and two community projects (or one community project and one commercial project), each up to 5MW, being able to share a single grid connection and receive separate FiTs.
The FiT will also now be guaranteed for an extra six months, giving communities more time to get projects up and running.
In addition to the changes, a Register of Community Benefits and Engagement for onshore wind projects has been launched to help communities get the most out of proposed wind developments in their area.