Death of the Feed-in-Tariff

The Feed-in-Tariff was first introduced in the UK in April 2010 to act as a financial incentive for homes and businesses to take up renewable energy. Succesful applicants receive a payment for the clean energy they produce receiving a guaranteed fixed price, indexed for inflation for 20 years.

The Feed-in-Tariff (FIT) has been extremely successful at encouraging the take up of renewable energy. Most installations in the UK could not have happened without it.

Unfortunately, the FIT subsidy is set to end in April 2019. As set out by the Government in the 2017 Autumn budget, “there will be no new subsidies for renewables until 2025”.

So what does this mean for the future of renewables in the UK? Thankfully, a dramatic fall in costs since 2010 means that access to solar power is much more affordable than it was. As the costs to store energy using battery power technology decline the time is approaching where there will be no need for subsidies after all, though making this happen by April 2019 will be a challenge.

Battery Storage

As the Feed-In-Tarff subsidy dimishes over the next year, solar power installers will be looking to use battery storage as a way of making new projects work financially. Being able to charge a battery with solar power means the electricity does not need to be consumed at the point of generation, instead it can be used when it’s needed, day or night. This could prove to be just the catalyst needed for wide-scale clean energy deployment.

Combining battery storage with renewable energy will unlock the door to using clean energy sources around the clock putting the final nail in the coffin for fossil fuels in our energy supply. Furthermore, in the same way that solar and wind power costs have plummeted, we can expect the price of battery storage to fall as production techniques improve and economies of scale take hold.

Battery Storage at Dyke Golf club

With falling costs, home storage is seen as increasingly attractive in the UK, particularly to early adopters, being the 850,000 homes with solar panels. The Tesla Powerwall, perhaps the best known energy storage battery, has recently become available in the UK, soon be challenged by a British made Nissan battery. Other British manufacturers are Powervault and Moixa.  There have even been suggestions that electric vehicle batteries can be connected to the grid to sell extra power at peak times, adding another incentive to becoming an EV owner.

The energy market is certainly set for some rapid and profound changes in the years to come. In the last part of our Energy Trends blog series, we’ll look at the emerging popularity of heat pumps and how smart meter will change the way we buy power.

There are few industries changing as quickly and as dramatically as the energy industry.  The movement from centralised to decentralised energy networks is well underway.

An ever depleting supply of fossil fuels and a growing global commitment to tackle the climate crisis has set the stage for a revolution in the way we buy, use, generate and store energy.

Recent years have witnessed an explosion of renewable energy supply, the slow death of coal and improvements in the digitisation of energy management in the workplace and the household. So what trends can we expect over the next twelve months and how will these impact UK consumers?

offshore wind energy trends 2018

The Big Picture

One trend that’s sure to continue is the tumbling cost of renewables. The price of solar power has plumetted by 80% in ten years and is expected to halve again by 2020. Offshore wind has witnessed an even greater fall in price, with costs decreasing by an amazing 50% in just 24 months as knowledge and technology improve.

Speaking at a recent conference on sustainability, the Director General of the International Renewable Energy Agency (IRENA) Mr Adnan Amin, said:

“the scale and pace of the transformation has accelerated, and this is leading to very significant structural changes to the energy system around the world”.

As costs continue to fall, the economics of renewables become increasingly appealing. Some experts predict global oil demand to peak as soon as 2020 and to decline thereafter, in part due to a rising uptake of electric vehicles.

energy trends 2018 electric vehicles

The Rise and Rise of EVs

Perhaps the greatest shift in energy consumption will come with electric vehicles.

As with other renewable technologies, the costs decline as production ramps up and economies of scale take hold. The number of electric cars on UK roads has risen from 3,500 in 2013 to 125,000 today. This trend is not just because of improved affordability.

A shift in the public’s perception of ‘EV’s,’ plus better consumer choice, an improved network of charge points and reductions in charging time has made them an increasingly appealing alternative to petrol.

In 2018 we can expect to see ever more electric vehicles on our roads, which in turn will stimulate a greater demand for electricity and the further advance of renewables ; a perfect feedback loop!

During 2018, there will be greater exploration of the benefits that EVs can bring to local energy networks in helping balance supply and demand in our communities.

In our next energy trends blog, we’ll take a look at the impacts we can expect from the Government’s smart meter rollout, as well as the game-changing role that battery storage will soon play in the energy industry.


The World Bank has decided to support the climate pledges made in the Paris Agreement and take radical steps to decarbonise the world by halting funding for fossil fuel industries after 2019.

This is a significant gesture that will not only help in the mitigation process to limit global warming to 2°C by the end of the century, it also gives a green light for more investment in renewable energy around the world. It might be the breakthrough we have been waiting for as it presents big opportunities to develop promising clean technologies that have suffered from a lack of investment.

World Bank

This will hopefully mean an acceleration of renewable energy projects around the globe, and the creation of many new job opportunities for communities that desperately need them. Furthermore, we will all be able to enjoy such benefits as decreased levels of pollution, cleaner air, and a healthier climate!

Another benefit of this decision is that it could help exciting new technologies become available for everyday use, such as solar panel-integrated windows or efficient energy storage systems.

We must remember that fazing out fossil fuels will not happen overnight. Polluting power stations will continue to operate for as long as they are financially viable and as long as they are supported by tax-breaks and subsidies from governments.

However, the fact that action is being taken by the World Bank, a major influential institution, brings hope that change is coming. This announcement not only sends a clear message that the days are numbered for the fossil fuel industry, but it simultaneously encourages governments and other institutions to follow suit.

Gyorgy Dallos, Greenpeace International climate campaigner, told The Guardian:

“The world’s financial institutions now need to take note and decide whether their financing is going to be part of the problem or the solution.” (2017, 12th Dec)

While there is still uncertainty ahead and a need to keep up the pressure, this news is a positive step and brings fresh wind into the energy sector.  Please support BHESCo in creating our clean energy future by becoming a member.


Some people, including political leaders, believe that environmental levies add cost to our annual energy bills, subsidising the construction of expensive wind and solar farms, making energy unaffordable for millions of people.  Sadly, these people are being mislead,  influenced by the large energy suppliers, like British Gas who recently blamed environmental taxes for their most recent price hikes.

The misinformation spoon fed to politicians by those whose interests lie in the preservation of a fossil fuel based energy industry is consumed blindly by our politicians who are overwhelmed by the amount of data that they must process to keep up to date.  The energy industry seems to be an area in which most politicians are especially uninformed, or worse, deceived.  Consumers are just concerned about rising energy prices, accepting the information given to them by energy suppliers trying to keep their customers.

The truth is that fossil fuel energy is subsidised at a much higher rate, more than two thirds higher, than renewable energy.  These subsidies are funded directly by the taxpayer, through tax credits to the shale gas exploration companies or tax breaks on investment of oil drilling and refining equipment.  Since tax breaks are not transported directly to our energy bills, they are less obvious to consumers.  Other subsidies funded by the taxpayer are embedded in departmental budgets, like the billions per year spent to maintain our nuclear power infrastructure is embedded in the budget of the department of Business and Industrial Strategy.  Direct funding of activities by the taxpayer allows for the activities to take place outside of public scrutiny.

Tax breaks for fossil fuels are funded by the taxpayer, investments in the renewable energy infrastructure that we need to ensure affordable and long lasting sources of energy for the future are funded by the bill payer.  There are many arguments that can be supported economically, that investments in renewable energy like wind and solar, pay back over the life of the energy generation because we don’t have to pay for the cost of the fuel, it is free.  The cost of the fuel incorporates the exploration cost, drilling cost transport cost of these fossilised relics we use for “cheap energy”. If the taxpayer funded our renewable energy infrastructure, by diverting less tax breaks to the fossil fuel industry and funding clean energy, our energy bills would also decline, there would be no need for ‘eco taxes’.

The truth is that for years onshore wind has been the cheapest form of energy, yet development of onshore wind generation has been discouraged by this government.  In June, 24% of the electricity in the UK was produced by solar panels.  800,000 homes have solar panels on their roofs and 200,000 have solar thermal hot water. Just recently, the price of electricity from offshore wind was trading at half the price of electricity from new nuclear power on the capacity market.  It is time to stop the distorted, misinformed news on renewable energy and to hold our politicians accountable for supporting the construction of more renewable energy in our communities.

We can work together to ensure that we have affordable heat and electricity into the future and stop listening to the propoganda on Eco Tax, or that the lights will go out without expensive new nuclear.  Battery storage is creating the reliability we need into renewable energy, eliminating the need for base load power.

Now is the time to support your local community energy group, to get behind the movement for local energy and stop accepting the highly selective news intended to manipulate public opinion coming from the media as our truth. We can create a cleaner, safer world for our children if that is what we choose to do.

Earlier this year, Community Energy England produced the UK’s very first ‘State of the Sector‘ report, highlighting the emerging influence and importance of community owned energy in 2017.

The community energy movement has witnessed tremendous growth over recent years, now boasting 222 organisations throughout the country, which can collectively generate 121MW of clean renewable energy. That’s enough to power 85,500 homes, and has reduced carbon emissions by 110,000 tonnes since 2002.

community owned energy england

The emergence of this new type of energy ownership and generation is in keeping with a wider transformation of our energy supply.

We are in the midst of a seismic shift in the way we use and consume energy. Developments like electric cars, smart grids, battery storage and demand response will make a huge difference to our relationship with energy by making it more local.  Community groups are perfectly positioned to be at the vanguard of this revolution.

Their drive, commitment and local insight provide an ability to put into practice emerging market developments, while the trust associated with being community owned can be vital for encouraging the uptake of new technologies such as smart meters.

Members of Community Energy South (Members of Community Energy South)

In an era of increasing devolution, it is fundamental for communities to invest in initiatives that will improve resilience. As well as generating energy independently (and reducing transmission loss), community energy creates local jobs and keeps money in the local economy. A 2014 government strategy paper on the subject observed that:

“Putting communities in control of the energy they use can have wider benefits such as building stronger communities, creating local jobs, improving health and supporting local economic growth.”

The age when coal and nuclear power dominated the supply market is over.  The gigantic power stations and reactors required to generate huge power outputs that travel for thousands of miles through the wires of the National Grid will soon be history . With access to affordable generation technologies like offshore wind and solar power, coupled with battery storage, heat pumps and a more effficient use of energy, we, as communities, are truly able for the first time to seize control of our energy future.

In countries like Germany, 35% of all renewable energy installations are community owned.  Our future, here in the UK is also community owned.  

Let’s work together to make this happen.


1 2 3 4 9