A more holistic approach to renewables should include Energy Sharing Communities

While speaking about the UK’s solar energy plans in July, Secretary of State for Energy Security and Net Zero Ed Miliband said the government would “encourage builders and homeowners in whatever way we can to deliver this win-win technology to millions of addresses in the UK so people can provide their own electricity, cut their bills and at the same time help fight climate change.” 

In alignment with the new government’s plans for a ‘rooftop revolution’ to help triple the UK’s solar power by 2030, we’re proud to play a leading role. We’ve already installed solar panels on thousands of people’s homes and are preparing to install the UK’s largest roof-mounted solar system at the Port of Liverpool. But there’s an additional way that the UK can massively expand its solar capacity without the need for any new innovation, upgrades to existing infrastructure, or financial risk: Energy Sharing Communities. 

What are Energy Sharing Communities? 

Installing solar panels on houses will undoubtedly help lower bills and protect the environment, but there is so much more we can do. The UK currently has tens of thousands of acres of vacant roof space belonging to schools, hospitals, churches, libraries, supermarkets, and other organisations, as well as thousands of buildings whose occupants don’t own their roofs. By enabling Energy Sharing Communities, at least some of this space could be used to generate cheap, sustainable energy that’s available to everyone. 

Here’s an example of how they work, and who stands to benefit: 

After installing a large solar array on its roof, a school could enjoy free renewable electricity, raise funds by exporting surplus to nearby homes at a fair price, become more connected to the community it serves, and play an active role in the clean energy transition. At the same time, people living nearby would enjoy lower bills and better funding for local services like schools, libraries, and hospitals. 

On the national level, Energy Sharing Communities could sidestep the expensive infrastructural upgrades required by more centralised renewable energy projects, protect the natural environment by focusing installations on already-developed areas, and boost the economy by creating thousands of jobs for installers. 

Ed Miliband is right to call solar a win-win technology, and by enabling Energy Sharing Communities the government could spread the benefits even further. 

How to make Energy Sharing Communities a reality in the UK 

In the UK today, a school that wants to generate solar electricity and export any surplus to nearby homes is required to pay transmission tariffs and other levies. These tariffs treat the school’s exported electricity as if it had been converted to high voltage, sent to the grid, and then returned to the community where it was initially generated. The problem is this doesn’t reflect physical reality, which would in fact see the electricity flow directly from the school into nearby homes. These redundant tariffs and levies make exporting electricity unnecessarily expensive and lessen the incentive for schools and other buildings to install solar systems and establish Energy Sharing Communities. By removing them, everyone can benefit. 

Domestic solar PV systems generally range from 1kWh to 5kWh in size, but a system installed on a school will be closer to 100kW and can provide clean energy to local homes along with economies of scale for installation and maintenance. While domestic PV is an important part of the solution, tripling the UK’s solar generation by 2030 will require a more holistic approach. Given the ease with which they can be established and the potential benefits for all involved, Energy Sharing Communities should be a significant part of the picture. 

To learn more about Energy Sharing Communities, and find out about the successful pilot we have already undertaken in Spain, read: Energy Sharing: How we hope to empower communities across the UK.