Organised by Junee Community Power Inc, the fund will see solar PV panels installed on the Junee Community Centre Hall and Senior Citizens Hall with subsequent energy savings working to pay for the panels and continue to fund future projects interest free.

"Circular funds are an exciting new way to fund local projects and keep more money in our local rural communities" Junee Community Power's Dennis Lambert said.

Mr Lambert explained the process of a circular fund.

"If you had donated $100 into the CORENA circular fund, who developed this concept in South Australia five years ago, it would have done $244 worth of work in the community since," he said.

"Think how much it will do in 10, 20 and 30 years.

"Solar PV electricity and investments in energy efficiency on our homes and businesses help keep money in our rural communities."

Students from Junee High School have been involved with past Junee Community Power projects, and remain at the forefront of their most recent venture.

"[Young people] want local action to make our communities more equitable, socially responsible and sustainable," Mr Lambert said.

Member for Cootamundra Steph Cooke attended the launch event, and said the circular fund was another step towards Junee Community Power "creating an impressive legacy".

"This fund will help support sustainability in Junee and enable the community to enjoy lower power bills thanks to the installation of solar panels on the Junee Community Centre Hall and Junee Senior Citizens Hall," she said.

"It's a fabulous idea and one which will continue to help Junee invest in more projects in the years ahead."