Government Proposals will stall Community Energy action in Capital

Press Release

13-Sep-2018

Community Energy London (CEL) has today responded to the government’s proposals on the complete shut down of the Feed in Tariff (FITs) policy stating that this will have negative impacts on the growth of the community energy sector across the country, but especially in London, where the delivery of small scale energy projects are particularly challenging.

Policy changes over the past two years have already made the investment landscape for community energy projects difficult, resulting in a major downturn in the development of new groups and projects (1). To add to this, the government’s new proposals (2) to cease payments to small scale renewable generators for clean power generated (the FITs ‘generation tariff’) and for clean power exported to the grid (‘export tariff’) from 31 March 2019, will have significant adverse impacts on the financial viability of projects.

CEL Member Sydney Charles of En10ergy, who have developed several solar projects in North London, said:

“Investors in community energy projects need to be able to sell their green electricity to recoup their money, but the government’s proposals to remove the export tariff means that generators will effectively be giving away their power to energy suppliers for free! And all at a time when the UK is supposed to be moving to a smarter energy system, with increasing levels of local generation.”

CEL Chair Syed Ahmed said:

“Community-led developments using solar are now installed on sites across London as diverse as churches and schools, to tower blocks and universities. These projects are conceived, constructed and financed by local groups who want to make a positive contribution to their area, and support London’s transition to a zero carbon city.

“It makes no sense for government to put barriers in the way of communities who are working to shift our energy system to one that is both cleaner and more affordable. The government is now seen by the sector – and more widely – as actively dissuading communities from exploring opportunities to develop local low carbon projects.”

CEL have been working closely with London boroughs and the Greater London Authority to support greater community activity on energy across the capital. In the past year, Islington and Camden councils have launched community energy funds, recycling carbon-offset payments made by developers. The Mayor has launched the London Community Energy Fund (LCEF) providing feasibility support for new solar projects, which have included installations on a GP practice, a city farm and a number of leisure centres. The Mayor has also written to Ministers stating that he is “deeply concerned” by these proposals to end government FIT payments. (3)

The benefits of community energy in London are widely recognised – including the key role it plays in educating and engaging the public in energy and climate issues. ClientEarth undertook a survey in August 2018 which found that almost three quarters (71%) of consumers would be interested in joining a community energy scheme if the government made it easier; 62% of individuals were keen to install their own solar panels and 60% home energy storage systems. (4)

NOTES

1. Community Energy England, State of the Sector report, June 2018
2. The Department for Business Energy and Industrial Strategy’s (BEIS) ‘Consultation on the Feed-In Tariffs Scheme’ closed on Thursday 13 September 2018. CEL’s response can be found here
3. ‘Don’t phase out solar panel subsidies, Sadiq Khan urges ministers’ The Guardian, 22 August 2018
4. British public supports urgent action and litigation on climate change – poll reveals, Client Earth,20 August 2018
5. Community Energy London (CEL) was formed in 2017 and is an informal network of people and organisations with an interest in supporting the development of community energy projects across the capital. CEL members have provided guidance and training on fuel poverty alleviation; have developed, fund raised and installed renewable energy generation projects such as solar PV and anaerobic digestion plant (AD); and worked on energy efficiency projects from insulation to high efficiency LED lighting. CEL provides a route for groups to link up and share experiences, resources, best practice and skills gained through the development and delivery of their projects. CEL also actively campaigns policy makers industry and wider stakeholders on the benefits for community energy, and worked closely with the Mayor of London in helping establish the London Community Energy Fund in October 2017.

Details of CEL’s members can be found at www.communityenergy.london

For further information contact Fleur Disney, Community Energy London officer, [email protected],

@CommEnergyLDN