Community energy like rooftop solar could power homes and make money locally - what’s stopping it?
In this second session of its inquiry into community energy, the Committee will question local energy suppliers and energy major OVO on making community energy financially viable and unlocking local energy supply. The Committee will be looking at how we could maximise the electricity generation potential of rooftop solar - including market reforms that would allow communities to sell surplus energy to the grid and make their renewable energy projects financially viable too.
Community energy projects like solar rooftop installations, a community buying its own wind turbine and even local hydro-power in hilly regions have the potential to power homes and businesses, reduce bills and generate money for the community. Buildings such as community centres, churches and warehouses may have prime rooftops for solar panels but may not need all the power they could produce. As the technology develops, solar panels are becoming more efficient. Government has acknowledged that local schools and hospitals with rooftop solar could potentially sell leftover energy back to the grid.
Meeting details
But a host of regulations and contracts to navigate, from local authority procurement and power purchase agreements to detailed industry codes, the local and national potential of community energy is going untapped. Many community energy groups wish to sell their renewable electricity to local customers, under current market rules this is not possible without complex workarounds.
The public supports solar and there is growing recognition of the relative affordability of renewables. But it is still difficult for community energy groups – largely volunteer led – to access stable revenues and finance new projects by selling to the grid.