How to shift to renewable energy systems in sparsely populated areas? This guide provides tools for initiative takers and planners, to explore the potential in local resources and provide sustainable electricity and heating for the community. The guide includes a step-by-step guide through the project development process and presents advantages and challenges of optional technologies and energy systems, including heating and electricity from wind, sun, sea and fresh water, biomass and the ground. The focus of this guide is on implementation of renewable energy solutions in sparsely populated areas, based upon proven technologies that are available in the market, and to design reliable and affordable energy systems. Energy storage and smart energy management get special attention. Facts and numbers from a pilot project in Leirvik at the Faroe Islands illustrates how to use this guide.