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Society and Governance in a Renewables-Based Economy

The transition towards a Renewables-Based Economy (RBE) is not only transforming how energy is produced and consumed; it is also changing how people access, own, afford, and participate in energy systems. As renewable technologies become increasingly distributed, they create opportunities to bring energy decisions closer to households, communities, businesses, and local institutions.

Within a renewables-based economy, society and governance therefore extend beyond electricity generation itself. Universal energy access, distributed renewable energy, local ownership, household affordability, community participation, and inclusive decision-making all influence whether the benefits of the energy transition are shared broadly across society.

The scale of this challenge and opportunity is reflected in several key indicators. Among 69 countries without universal electricity access, 53 countries had incorporated renewable energy into their access policies. Global off-grid solar kit sales reached 10.2 million units in 2025, while 63 countries had policies linking renewable energy and energy efficiency with household energy affordability. By March 2026, REN21 had also identified 114 policies across 41 countries supporting community energy or citizen engagement.

In this article, we examine the Society and Governance dimension of the REN21 Renewables-Based Economy Tracker 2026, focusing on renewable energy and universal access, distributed and off-grid energy systems, household energy affordability, local ownership, community participation, and the evolving governance structures needed to support a more inclusive renewables-based economy.

Renewable energy is expanding energy access, distributed generation, affordability and community participation worldwide.

1. Policies for Energy Access

Access to secure, reliable, and affordable energy services remains essential for social and economic development. Renewable energy is increasingly being integrated into national energy-access strategies, particularly where conventional grid expansion is difficult or costly and distributed solutions can bring electricity directly to underserved communities.

• Renewables are increasingly central to closing the electricity-access gap: Among the 69 countries that lacked universal electricity access as of 2023, 53 had incorporated renewable energy solutions into their national energy-access policies by early 2026, while 46 had established concrete targets to expand electricity access through renewables. Distributed renewable solutions are also highlighted in more than half of existing electricity-access policies.




• Sub-Saharan Africa remains at the centre of the global energy-access challenge: Around 85% of the world's energy-underserved population lives in Sub-Saharan Africa. National Energy Compacts published by African countries in 2025 identify solar mini-grids, micro-grids, and stand-alone solar systems as critical solutions for expanding electricity access, alongside bioenergy, geothermal energy, and small-scale hydropower where local resources support their use.




• Better policy and financing can significantly reduce renewable deployment costs: Financing gaps, high costs of capital, permitting delays, and grid uncertainty continue to restrict energy-access projects in developing countries. REN21 reports that well-designed energy-system support policies can reduce renewable deployment costs by around 30% in developing-country contexts, while blended finance and demand-led planning can help improve the viability of smaller projects such as mini-grids.




• Electricity access figures do not capture the full quality of energy services: The 69-country electricity-access baseline identifies where universal coverage has not yet been achieved, but connection alone does not show whether electricity is reliable, affordable, safe, or sufficient for productive activities. REN21 therefore highlights the need for more comprehensive indicators that can determine whether expanded energy access is producing meaningful social and economic benefits.

2. Distributed Renewables and Ownership Structures

Distributed renewable energy is changing both where electricity is generated and who can participate in the energy system. Rooftop solar, small-scale renewable systems, battery storage, and community projects allow households, businesses, and local communities to become energy producers and owners, while creating more decentralised alternatives to conventional utility-scale generation.

• Distributed solar has become a major part of global renewable deployment: Newly installed distributed solar PV capacity reached approximately 286 GW in 2025, compared with around 411 GW of centralised solar PV. Distributed systems therefore represented about 41% of the combined 697 GW of centralised and distributed solar additions reported for the year, demonstrating the growing scale of decentralised electricity generation.




• Distributed generation is already overtaking centralised solar in several major markets: In 2025, distributed solar additions exceeded centralised installations in markets including Australia, Brazil, Japan, South Africa, and established Western European rooftop PV markets. This growth reflects increasing self-consumption, prosumer participation, and demand for electricity generation located closer to consumers.




• Distributed renewables can create more diversified ownership structures: Smaller renewable assets can be owned by households, businesses, co-operatives, and communities rather than exclusively by large utilities and institutional investors. In Germany, private individuals owned around 30% of total renewable energy capacity in 2019, providing a measurable example of how renewable deployment can broaden participation in energy ownership.




• Policy frameworks are increasingly supporting distributed renewable participation: As of 2025, 92 countries had implemented at least one financial compensation mechanism for distributed renewable generation, including feed-in tariffs, net metering, or net billing. Around one-quarter of these countries combined multiple mechanisms, reflecting a shift from simply encouraging deployment towards integrating distributed generation while balancing system value and cost efficiency.




• Off-grid solar and PAYGo financing are extending distributed energy access: Global sales of off-grid solar kits reached approximately 10.2 million units in 2025, with more than 9 million kits sold in Sub-Saharan Africa. PAYGo financing also reached a record of around 5.1 million sales, moving to near-parity with cash sales globally and demonstrating how flexible payment models can expand access to distributed renewable energy where large upfront costs remain a barrier.

Distributed renewable energy is expanding through rooftop solar, community systems, local ownership, and supportive policy frameworks.

3. Energy Affordability (Consumer-Level)

Access to electricity alone does not ensure that households can afford the energy services they need. A renewables-based economy must therefore address the cost of heating, cooling, electricity, and transport, while using renewable energy and energy efficiency measures to reduce household exposure to high and volatile energy costs.

• Energy costs remain a significant burden even in high-income countries: As of 2026, more than 120 million households in high-income countries were spending over 10% of their income on heating and cooling. For the lowest-income population, this burden rises above 20% when spending on private transport is also included.




• Household energy affordability problems are visible across major economies: In the European Union, around 9% of the population was unable to keep their homes adequately warm as of 2024. In the United States, approximately 27% of households reported difficulty paying energy bills or maintaining safe indoor temperatures in the available 2020 data.




• Renewables and energy efficiency are increasingly being used to improve affordability: As of 2025, 63 countries had household energy-affordability policies incorporating renewable energy and energy efficiency measures. Fiscal and financial incentives were the most common instruments, supporting technologies such as rooftop solar PV, solar thermal systems, heat pumps, efficient appliances, and building renovations.




• Energy burdens can affect low-income households disproportionately: In the United States, energy expenditure accounted for around 6% of household income for low-income households, compared with approximately 2% for non-low-income households. This difference illustrates why renewable-energy and efficiency policies need to consider household income and affordability rather than focusing only on technology deployment.

Renewable energy and energy efficiency can help reduce household energy burdens and improve energy affordability.

4. Energy Governance in a Renewables-Based Economy

The decentralised nature of renewable energy is changing how energy systems are governed. Citizens, communities, co-operatives, businesses, and local institutions can increasingly participate in renewable energy planning, project development, ownership, and benefit sharing. Effective governance frameworks are therefore important for ensuring that local communities can participate meaningfully in the energy transition and share in the value created by renewable energy projects.

• Community energy and citizen engagement policies are expanding: As of March 2026, REN21 identified 114 policies across 41 countries supporting renewables-based community energy and citizen engagement. These policies demonstrate growing recognition of the role that communities and citizens can play in renewable energy planning, development, and ownership.




• Community energy governance continued to develop during 2025 and early 2026: Of the 114 policies identified globally, 9 policies were adopted in 2025 or early 2026. European countries account for the largest share, reflecting the influence of European Union legislation requiring enabling frameworks for renewable energy communities.




• Citizen participation in large-scale renewable projects remains much less common: REN21 identified only 9 existing policies specifically addressing citizen engagement in large-scale renewable energy deployment. These approaches include participatory project siting and local benefit-sharing mechanisms designed to strengthen community involvement and acceptance.




• Governance support remains concentrated in a relatively small number of countries: With community energy and citizen engagement policies identified in only 41 countries as of March 2026, the majority of countries worldwide still lack dedicated frameworks in this area. Expanding regulatory, financial, consultation, benefit-sharing, and co-ownership mechanisms will therefore be important for enabling broader citizen participation in a renewables-based economy.

Community participation, regulatory support and financial policies are strengthening inclusive renewable energy governance.

Related Articles

• Renewables-Based Economy (RBE) - 2026: Energy Systems and Energy Security


• Renewables-Based Economy (RBE) - 2026: Economy

Summary

The Society and Governance dimension of a Renewables-Based Economy shows that the energy transition extends far beyond replacing conventional generation with renewable technologies. Among 69 countries without universal electricity access, 53 had incorporated renewables into their access policies by early 2026, while distributed solar PV reached 286 GW of new capacity in 2025. At the household level, 63 countries had introduced affordability policies combining renewable energy and energy efficiency measures.

However, a successful renewables-based economy requires more than expanding renewable capacity. Energy must also be accessible, affordable, locally adaptable, and supported by inclusive governance. By March 2026, REN21 had identified 114 policies across 41 countries supporting community energy and citizen engagement, showing growing recognition of local participation, ownership, and benefit sharing as important elements of the energy transition.

Frequently Asked Questions

Q1: How can renewable energy help expand universal electricity access?

A1: Renewable energy can provide electricity through both grid-connected and distributed systems, particularly in rural and remote areas where conventional grid expansion may be difficult or expensive. Among the 69 countries without universal electricity access, 53 had incorporated renewable energy into their access policies by early 2026, while 46 had established concrete renewable-based electricity access targets.

Q2: What role do distributed renewables play in a renewables-based economy?

A2: Distributed renewables allow electricity to be generated closer to consumers and can expand participation by households, businesses, communities, and prosumers. Newly installed distributed solar PV reached approximately 286 GW globally in 2025, compared with around 411 GW of centralised solar PV.

Q3: How important is off-grid solar for expanding energy access?

A3: Off-grid solar provides electricity to households and communities beyond the reach of conventional grids. Around 10.2 million off-grid solar kits were sold globally in 2025, including more than 9 million in Sub-Saharan Africa, while PAYGo sales reached approximately 5.1 million systems.

Q4: How can renewables and energy efficiency improve household energy affordability?

A4: Renewable energy and energy efficiency can help households reduce energy consumption, improve building performance, and lower exposure to energy costs. As of 2025, 63 countries had household energy-affordability policies incorporating renewable energy and energy efficiency measures, including support for solar systems, heat pumps, efficient appliances, and building renovations.

Q5: How does renewable energy change energy governance and community participation?

A5: The decentralised nature of renewable energy can enable citizens, communities, co-operatives, and businesses to participate more directly in energy ownership and decision-making. As of March 2026, REN21 identified 114 policies across 41 countries supporting renewable community energy and citizen engagement, including regulatory frameworks, financial support, benefit sharing, and local participation.