Large community energy projects will be able to receive Feed-in Tariff (FITs) payments for the energy they generate under plans set out by the Department of Energy & Climate Change (DECC). Projects such as solar PV arrays on school roofs, panels on libraries, community-owned wind turbines and hydro power from local streams could all benefit from the payments under proposed new rules.
The FITs scheme pays householders, businesses and communities for the electricity they generate from renewable energy technologies including solar PV, wind, hydro and anaerobic digestion (AD). Money is also available for extra power exported to the national grid.
At present, community projects over 5MW receive payments under the Renewables Obligation (RO) but in response to feedback from community groups DECC is now planning to increase the threshold for community projects under FITs to enable larger projects to benefit.
“The Coalition is determined to drive a step change in the deployment of community energy” said Energy and Climate Change Minister Greg Barker. “We want to help consumers, businesses and communities generate more of their own clean, green electricity locally, becoming less reliant on centralised power generation. The expansion of our reformed Feed-in Tariff will encourage even more communities to get on board.”
Hundreds of community projects all over the country have already benefitted from government support and last week the government opened a £15 million Renewable Community Energy Fund to help with the cost of feasibility studies and the process of seeking planning permission. However DECC is also keen to explore what needs to be done to kick start even more projects across the country and has issued a call for evidence to that end. The UK’s first community energy strategy is due to be launched in the Autumn and the proposed changes to the FITs rules will be made as part of the Energy Bill process. Once the Bill comes into force the government will consult on what this entails for community schemes.
Under DECC proposals, community projects up to 10MW in size would be eligible for FITs payments.
Further information:
Department of Energy & Climate Change (DECC)
