The Community Power Agency (CPA) has launched the Community Energy Incubator, a national program designed to help community groups move from renewable energy concepts to investment-ready solar and battery projects.
The initiative responds to the growing interest from communities wanting more control over their energy supply, while tackling the barriers that have long slowed the progress of mid-scale renewable projects.
“Community groups are competing in a system built for big energy players, yet there’s huge momentum and demand from communities to participate in renewables themselves – and their role doesn’t have to be limited to rooftop scale,” said Community Power Agency Director Kim Mallee, who co-led the country’s first community solar garden, Haystacks Solar Garden.
Bridging the ‘Missing Middle’
Since 2011, CPA has worked with more than 50 community groups to develop local clean energy projects. Yet mid-scale initiatives—those larger than household systems but smaller than utility-scale plants—have often struggled to find their place. These projects sit in what CPA calls the “missing middle” of the energy system, where grid access, financing and policy gaps have slowed progress despite strong community interest.
The Community Energy Incubator aims to bridge that space by providing structured mentoring, governance training, and up to $10,000 in starter funding for at least five community-led projects. The selected groups will be supported from early feasibility through to investment readiness by mid-2027.
Projects will also be aggregated into a shared investment portfolio to attract blended finance—combining community, government, and private investment—to prove the model’s financial and social value.
Local Control, Local Benefit
One of the first groups to welcome the initiative is the Southcoast Health and Sustainability Alliance (SHASA), which has led renewable energy efforts across Eurobodalla for more than a decade.
“Our community has wanted to develop a mid-scale solar farm for years, but there’s no support to level the playing field in the utility-scale space,” said SHASA President Kathryn Maxwell. “The Incubator is exactly what’s needed – practical, hands-on support to help communities realise their energy ambitions.”
Building Capacity and Confidence
The Incubator’s design reflects a maturing public understanding of renewable energy. Communities across regional and urban Australia have become increasingly open to local solar and battery projects, viewing them not just as environmental initiatives but as practical tools for resilience and cost stability.
By placing ownership and governance in community hands, these mid-scale projects also encourage local investment and strengthen trust in the energy transition. For energy professionals, the model represents a decentralised approach that complements large-scale renewables and supports grid diversity.
Applications Now Open
Expressions of Interest are now open for councils, local partnerships and community organisations within the National Electricity Market. Applications close on Friday, 16 January 2026, with selected groups beginning the program in March 2026.
