CEL response to the FiTs consultation
Read our response below:
17-Sep-2018
CEL FiTs consultation response 14th Sept 2018
Summary
- The FITs policy has been instrumental in supporting the development of a dynamic UK community energy sector, which has been an active player in developing innovative small-scale low carbon generation capacity, typically sited in the challenging locations commercial developers ignore.
- We strongly disagree with the Government’s proposal to end the export tariff.
- We strongly disagree with the removal of the generation tariff for community energy projects.
- We believe that closure of the FIT export tariff will make small to medium- sized community energy schemes unviable, typical of the size of those projects developed in London.
- London installations are highly challenging to progress due to a range of issues from engaging property owners to securing long-term site agreements to costs of install. The investment case for these projects has already eroded due to the dramatic reductions in FIT support; the closure to new projects of the export tariffs will effectively kill most new generation opportunities.
- We call on Government to retain the Feed in Tariff (FIT) generation and export tariffs for community energy projects – or introduce a modified ‘Community Feed in Tariff’.
- Community energy projects involved in promoting energy efficiency and fuel poverty alleviation programmes have already taken a hit with the reduction in ECO support and failure of the Green Deal.
- The Government’s proposals to end the export tariff is a clear example of what has been called the ‘chopping and changing of policy’ by the Committee on Climate Change which “has led to uncertainty, [and] carries a real cost”.
- There is clear evidence that policy changes since 2016 have led to a reduction in the development of community energy projects. The Government’s proposal to end export tariffs will further limit new activity in the community energy sector over the next few years.
- We believe that the proposal to end the export tariff will fundamentally set back the growth of local generation projects, which are a cornerstone of the Government’s goal to a transition to a smarter energy system.
- We are particularly concerned that whilst Government state their support for new policy mechanisms to support the uptake of small-scale generation, no recommendations have been put forward in the consultation.
- Government policy changes have destabilised the growth of community energy projects. CEL calls on the government to confirm as soon as possible that the export tariff will continue next year.