Ownership Models Explained

When a renewable energy system is built in a remote community, one of the most important decisions is who owns it. Ownership determines who receives the revenue from power generation, who makes decisions about the system, and where the long-term economic benefit flows. There are three main models.

Model 1: Utility ownership

Under this model, the state utility — Horizon Power in Western Australia — owns the solar panels, batteries and associated equipment. Horizon Power builds the system, maintains it, and sells power to residents at standard tariffs. The community benefits through lower bills and improved reliability, but the generation asset and its revenue belong to Horizon Power.

This is the model used in the Kimberley Communities Solar Saver (KCSS) program and the ReGen standalone power system rollout. It requires no capital contribution from the community and no technical expertise. The trade-off is that the community has no equity stake and no direct share of generation revenue.

Model 2: Community ownership

Under this model, the community — through its Aboriginal corporation or a subsidiary — owns the generation asset. The community builds the system (typically using government grants and co-equity from partners like IBA), operates it, and sells power into the local grid under a power purchase agreement (PPA) with Horizon Power.

Revenue from power sales flows to the community corporation, creating a long-term income stream that can fund services, employment and community development for decades. This is the model being pioneered by Djarindjin Aboriginal Corporation with its Aalga Goorlil Sun Turtle project, and by the Ngardara cooperative in the Northern Territory.

Community ownership requires more capability, capital and governance than utility ownership — but the economic return is transformative. Over 20 years, a community-owned solar system can generate hundreds of thousands of dollars in revenue that stays in the community rather than flowing to an external utility.

Model 3: Shared ownership / partnership

A hybrid model where the community holds an equity share alongside an energy developer, a government co-investor like IBA, or a specialist Aboriginal energy company. Risks and revenues are shared according to ownership percentages. This model reduces the capital requirement and technical burden on the community while still delivering a share of long-term revenue.

The East Kimberley Clean Energy Project uses a partnership model, with three Traditional Owner groups and clean energy investor Pollination each holding 25% equity. The Capacity Investment Scheme now requires developers to offer at least 5% equity or equivalent revenue sharing to First Nations peoples from 2026.

Community benefit agreements

Regardless of ownership model, a community benefit agreement (CBA) can be negotiated to ensure the community receives tangible benefits from any energy project on or near its Country. Benefits might include lease payments, employment targets, training programs, community funds, or revenue-sharing arrangements.

The Kalumburu Community Energy Fund, where Horizon Power reinvests diesel savings into a community fund of $15,000 per year for 10 years, is an example of a benefit agreement under utility ownership.