Community energy: shared heat, power and planning
A community energy system is a source of heat, electricity or both that serves a group of buildings or a whole neighbourhood, instead of each building having its own equipment. In Canada the term covers district energy loops, shared solar, community-owned renewables and local microgrids, usually backed by a municipal or cooperative owner.
What counts as a community energy system?
The label is broad. Some systems share heat: a central plant sends hot or cool water through buried pipes to many buildings, as in district heating in Canada. Others share electricity, such as a solar array or wind turbine owned by residents, a cooperative or a utility. Some do both, or add storage and local controls and become a microgrid.
The common thread is shared infrastructure and shared governance. Someone must own the equipment, set the rates and keep it running, whether that is a municipality, a utility, a cooperative, a non-profit or a private operator.
What are the main types?
- District energy. Heating, and sometimes cooling, supplied from a central plant or a ground-source field. The case for sharing is weighed in district energy versus individual heating.
- Shared solar. One array serves several households or buildings. Ownership and metering rules differ by province, a point developed in shared solar ownership and metering.
- Community-owned renewables. Cooperatives or local investors fund solar, wind or small hydro, and sell the output to the grid under the province's rules.
- Thermal storage networks. Heat is stored in tanks or the ground and shared, as at Drake Landing.
- Microgrids. A local network that can supply some load even when the main grid is down.
The difference between a solar-heated community and a neighbourhood of rooftop panels is explained in community solar heating versus rooftop solar.
Why do communities build them?
The motives vary. Some want lower emissions and a way to use local resources such as waste heat, geothermal or biomass. Others want price stability, local jobs or more resilience when the grid goes down. Shared plants can also be more efficient than many small ones, because one large unit can run steadily and be maintained by specialists.
Planning matters as much as hardware. Many municipalities write a community energy plan that maps heat and power demand, local resources and emissions targets, then uses it to guide zoning, new development and public buildings. Whether such a plan exists for your area is a question for the municipal planning or sustainability office.
What did Drake Landing show about community energy?
Drake Landing Solar Community in Okotoks, Alberta, was built as a demonstration of a solar-heated neighbourhood. Fifty-two homes shared 800 collectors on garages, an Energy Centre and a district heating loop, with heat stored in 144 boreholes under a nearby field. Monitoring reported 97 percent of space heating from the sun by 2012 and 100 percent in the 2015-16 heating season. See the how it works page for the full design.
It also showed the hard parts. A community system needs an owner, an operator, a plan for ageing equipment and rules for who pays. The community was wound down from about 2020, with decommissioning from 2024, and the lessons are discussed in could Drake Landing be replicated today and Canadian solar heating pioneers.
How can you check what exists near you?
Start with the municipality: ask whether a district energy system, a community energy plan or a shared solar program exists or is planned. Then ask the electric and gas utility how local generation connects under the provincial rules. Funding for community-scale projects changes, so check the Government of Canada energy pages and your provincial energy ministry for current programs and eligibility. A town like Okotoks, covered in Okotoks energy and climate, shows how one local government approached the question.
Quick answers
What is a community energy system?
It is shared heat or electricity infrastructure serving several buildings or a neighbourhood, such as a district heating loop, a shared solar array or a local microgrid.
Who owns community energy systems in Canada?
Owners include municipalities, utilities, cooperatives, non-profits and private operators. The owner sets the rates and is responsible for operation and renewal.
Can a homeowner join one?
Only where one is already available or planned nearby. Ask the municipality and the local utility what exists in your area.
Are there grants for community energy projects?
Funding programs for community-scale projects do exist at federal, provincial and municipal levels, but terms change. Check current offers with the Government of Canada energy pages and your provincial ministry.