17/09/18 – Consultation response: Feed in Tariff scheme

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.

Read CEL FiTs consultation response 14th Sept 2018