Isra-Mart srl: Microgeneration strategy to bring "power to the people"

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The government today released its microgeneration strategy accompanied by an action plan to encourage businesses and households to start producing their own energy.

The strategy formalises the document released for consultation in December and shows little change to the policies outlined then, addressing financial payments for small systems, reforming the Microgeneration Certification Scheme (MCS) process and addressing skills shortages in the industry.

The proposals outlined will be taken forward to the planned comprehensive review of feed-in tariffs expected later this summer.

The government has been heavily criticised for scaling back support for larger renewable energy generation, but Energy and Climate Change Minister Greg Barker said the strategy for installations producing under 50kW of electricity or less than 300kW of heat would spark a "revolution in energy generation at a local level".

"We want to help people who are enthusiastic to generate their own energy matched by an industry with the desire, creativity and tenacity to grow in a sustainable and responsible way," he added. "That's why we have worked with industry to develop a clear way forward."

The government says the feed-in tariff (FiT) scheme and the Renewable Heat Incentive (RHI) will provide the impetus behind the industry, and help drive costs down over time as technologies such as solar panels, micro wind turbines and small-scale hydro systems reach a critical mass.

It promises £15m of support through Renewable Heat Premium Payments before the RHI commences next year, but says the onus is on the sector to make the most of financial incentives by overcoming non-financial barriers including quality and performance.

These barriers are addressed in the accompanying action plan, which was developed with industry, and outlines steps to make it easier for companies to obtain the MCS label, and proposes allowing hydro schemes to be eligible for feed-in tariffs without having the label.

Other actions include ensuring consumer protection is maintained across the microgeneration sector, and developing the skills and knowledge needed to support the industry as it expands.

Dave Sowden, chief executive of the Micropower Council, told BusinessGreen the strategy gave the sector the "motivation to drive forward".

"The sector is not without faults – there are still some creases we can iron out," he said. "People understand that the FiTs piece is important, but if we don't do the other stuff, we're not going to have an industry that grows sustainably."