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The European Commission has introduced various policy initiatives and guidance measures to assist Member States in combating energy poverty, which continues to affect millions across the EU amidst recurring energy price crises. These initiatives include formal recommendations published in 2020 and 2023, with a third scheduled for release at the end of 2026.

While the role of community energy in driving an equitable transition is widely acknowledged, vulnerable and lower-income households remain largely absent from energy communities. Disadvantaged populations, such as the 20 million households in public and non-profit rental housing, often lack the capital and agency to establish or participate in these renewable energy projects. The brief highlights that energy communities structurally combat energy poverty through collaboration and democratic governance, making them an immediate, structural solution that the EU must promote.

Main Recommendations

The brief outlines actionable frameworks to foster inclusivity and scale the impact of energy communities across three key pillars:

1. An Enabling Framework for Energy Communities

  • Reward inclusiveness: Governments should offer tax incentives, fast-tracked administration, or priority grid access to energy communities that meet diversity targets (e.g., including at least 10% vulnerable households).
  • Prioritise energy poverty actions in funding calls: Manage funding calls (such as those guided by the Cohesion for Transitions initiative) to directly support actions addressing energy poverty.
  • Leverage the 2028–2034 EU Budget: Member States should use National and Regional Partnership Plans (NRPPs) to invest in community energy projects that tackle energy poverty.
  • Capacity building & data-sharing: Support communities with targeted guidance through national federations and housing providers. And implement standardised, qualitative, and quantitative monitoring tools to identify vulnerable households effectively.

2. An Enabling Framework for Households

  • Assess structural barriers: Map and eliminate structural obstacles, such as the "Welfare Dilemma" where joining an energy community might trigger a loss of public welfare benefits.
  • Deliver default-based support: Simplify participation by enacting policies like automatic, opt-out membership or automatic subsidies for vulnerable groups.
  • Financial subsidies: Cover 100% of membership and investment costs for vulnerable groups using instruments like the Social Climate Fund or zero-interest loans.
  • Foster meaningful dialogue: Move past procedural compliance to implement genuine, multi-level co-creation in energy policies.
  • Focus on empowerment: View human-centered indicators, such as dignity, comfort, and personal agency, as ends in themselves rather than just economic metrics.

3. An Enabling Framework for Allies

  • Strengthen trusted intermediaries: Provide dedicated, long-term funding and training to municipalities, NGOs, and social services so frontline workers can help households navigate the energy transition.
  • Create integrated support: Build cross-sector coordination so eligibility for one social welfare program automatically streamlines access to energy benefits.
  • Support Local Hubs & Financing: Fund local coordination platforms to centralise information, and create de-risking partnerships between energy communities and municipalities or housing providers to overcome upfront capital barriers.