The article aims to determine the relationship between innovation and social capital. The research was conducted in 2023 in 14 municipal energy companies. A multidimensional psychometric tool was used to examine the level of social capital - a survey questionnaire consisting of 40 questions covering attributes and indicators in three dimensions of this capital: relational, structural and cognitive. Only internal social capital was examined. In the case of innovations, the level of innovativeness of enterprises was not examined; data was limited to collecting data on the number of innovations divided into product, process, marketing and organizational innovations. Research results indicated that there is a relationship between the level of social capital and innovation. In particular: (1) The number of innovations is higher in companies with a higher level of internal social capital, (2) The percentage of organizational and marketing innovations in relation to product and process innovations is higher in companies exceeding the level of 60% of internal social capital, although numerically the number of the latter in energy companies is much higher (3) A greater number of innovations occurred in companies with the highest level of social capital in the structural dimension. It is difficult to prove whether innovations have a greater impact on social capital or social capital on innovations, but the research results have shown that the relationship is two-sided - a high level of social capital favors innovations, and a large number of innovations has a positive impact on the level of capital.