Community energy dealt “hammer blow” by government policy changes

Co-operatives UK has called for action after policy changes by the Government have caused a drop in community energy start ups by more than 80%. The figures suggest that there were only 10 new community energy organisations registered between 1 January and 6 September. This is in comparison to 76 energy start ups in 2015.

The changes include an ambitious community energy strategy launched in 2014 which was then limited through tax reliefs and energy generation tariffs in 2016.

Ed Mayo, Secretary General of national trade body Co-operatives UK, said:

“Local communities have put in extraordinary efforts to encourage clean renewable energy in the face of extraordinary barriers put in their way by national politicians. We are in the midst of Community Energy Fortnight, a time to celebrate this hopeful and grassroots movement. But the government’s policy changes have dealt it a hammer blow, causing confusion and bringing growth to a virtual standstill.” "The public backs community owned green energy, people want more control of their local economy and what we need from government is a clear and consistent framework, including appropriate support, so that the thousands of local people wanting to invest in and generate community energy are able to do so without fear of policy upheavals.” A number of examples have been given. Chester Community Energy which was established in January of this year, is now trying to complete its 50kW solar installation on a council-owned leisure centre. The initial project was funded by the old type feed in tariff payments. One of the founding directors, Francesca Moore has said that without that funding the project would not have been possible. She said:

"We would not have done it. We would have ended it a long time ago. We would not have been able to give a return to investors. We might have been able to squeeze one per cent but that’s not enough for people – and we wouldn’t have been able to generate a community energy fund."

"I don’t know if it was ever thought through at a proper level. We should be doing everything we can to curb the effects of climate change. It (community energy) is something very positive that’s volunteer-led and community funded and focused. It delivers a lot of value and efficiency savings."

The Brighton Energy Co-operative established in 2010 has raised more than £1 million from the local community to build some of the largest solar energy installations in the area. Chairman Will Cottrell has said that the funding would not have otherwise been feasible. He said:

"January's feed-in-tariffs cuts mean that new projects are not financially viable. So what's the point in starting a community energy scheme when you can't offer members interest or community funds?”