The Department of Energy and Climate Change (DECC) Urban Community Energy Fund will allow groups to bid for grants of up to £20,000 or loans of £130,000 to kick-start projects.

Community groups can create renewables "power hubs" in their area, says DECC.

"Communities can play their part in generating renewable power at a local level. This is all about investing in renewable energy sources, creating jobs and changing the way renewable energy is developed in the UK," says energy secretary Ed Davey.

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