The renewables industry has accused UK energy regulator Ofgem of “seriously undermining” small-scale projects by proposing to remove more embedded benefits and impose new grid charges.
The Renewable Energy Association said Ofgem’s Targeted Charging Review ‘minded to’ proposals “discriminate” against existing small-scale assets and make it more challenging to develop new projects.
The proposals due to come into effect by 2021 would remove the remaining grid charge benefits for small, embedded generation, and making such sites pay balancing charges.
The final decision will correspond to the feedback provided from the TCR proposals consultation due to close in February.
The REA said the proposals compound the ending of support for new small-scale renewables from next year with the closing of the Feed-in Tariff scheme.
“While our sector accepts the network must be paid for, these proposals would specifically hit homes and businesses which have installed on-site solar, wind, and other generation, as well as energy storage,” said REA chief executive Nina Skorupska.
“For the price of saving some consumers the equivalent of a £2 cup of coffee a year, these proposals will make it tougher to build small scale renewables and punish homes and businesses that have taken the socially and environmentally responsible decision to install renewables such as solar,” she added.