Tim O'Brien, Net Zero Officer for the Yorkshire North & East Methodist District, said: "This is about building a smarter, more community-focused energy system.
"Instead of relying on energy being pushed in from far away, we can generate it here in Knaresborough, and use it here – saving money and cutting waste."
He suggested the scheme could also reduce the need for major infrastructure, such as pylons and underground cables, which are typically required to carry electricity over long distances.
Local residents can find out more about the scheme at an exhibition at the church on Saturday 7June, as part of the Great Big Green Week.
"In a world that often feels uncertain, this is something positive and grounded," said Mr Hay.
"It's not about grand statements. It's about doing the right thing – for your neighbours, your town, and your future."