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Home»News»Calls Grow for Government to Scrap Unfair Penalties on People-Owned Renewable Energy
Net zero action: The wind farm owned by 5,600 members of the public A credit card slice of a wind turbine is all it takes to power an average home for a year, and now thousands of people from across Britain are set to reap the benefits of their very own slice of Kirk Hill Wind Farm in Scotland. The eight turbine site in Ayrshire is powering up this month after more than 5,600 members of the public and small businesses raised £13.2m to build it in 2022. Pictured:
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Calls Grow for Government to Scrap Unfair Penalties on People-Owned Renewable Energy

Sam AllcockBy Sam Allcock09/09/20245 Mins Read

As the new Labour Government pushes forward with its ambition to transform Britain into a ‘clean energy superpower’, there are increasing calls to remove financial penalties on members of the public who generate their own renewable energy.

While rooftop solar panels have become the go-to solution for many households and businesses, an increasing number of people, particularly renters and those living in flats, are turning to energy cooperatives. These cooperatives enable individuals to own a stake in large-scale wind farms and solar parks, allowing them to receive low-cost, green electricity to their homes via the national grid and their energy supplier.

Ripple Energy is at the forefront of this movement in the UK and today launched its ‘Own Your Power’ campaign to make large-scale energy cooperatives more accessible by removing financial barriers.

Sarah Merrick, Founder and CEO of Ripple Energy, who is also a member of the UK Government’s Onshore Wind Taskforce, which is focused on accelerating renewable energy deployment, said:

“We’re at a critical point in the UK’s energy transition, with the new Government pledging to speed up renewables deployment and the biggest expansion in community energy in British history.

“At Ripple, we absolutely believe that’s possible, but only by going big on people-owned power. We need lots of new wind farms and solar parks to achieve the Government target of green power by 2030; people shouldn’t be locked out of the transition.

“Energy cooperatives are the solution. They democratise energy ownership by enabling people to be part of large-scale projects. Crucially, they also protect people against price hikes from the energy market and geopolitical volatility.”

HOW TO MAKE COOPERATIVE ENERGY ACCESSIBLE

While the Government has already expressed its support for community energy projects, including backing cooperatives, more action is needed to help people take their first step into renewable energy ownership.

Ripple is calling for three key financial challenges to be addressed.

  1. A simple and accessible levy exemption for green energy ownership – Green energy levies are added to electricity bills to support renewable energy in the UK. People should not have to pay energy levies on electricity supplied from their own wind farm or solar park. A typical household might pay £2,000 to buy a share in a wind farm to supply their electricity, only to face an additional £1,800 in levies to subsidise someone else’s wind farm. While an exemption from these levies does exist, it currently requires the use of unlicensed energy suppliers or private wire networks. Ripple wants the exemption to be simplified so that anyone who owns part of a large-scale wind farm or solar park cooperative can benefit.
  2. Stop taxing bill savings – Savings from cooperative energy ownership can be subject to tax, as these are treated as interest income. For some members, this reduces their electricity bill savings by as much as 40%. Ripple is calling for tax relief for cooperative energy ownership, similar to the relief granted to homeowners with solar panels.
  3. Financial support – Ripple is urging GB Energy to provide low-cost loans or grants to help lower-income households buy shares in wind farms or solar parks. While home solar systems are often out of reach for those on lower incomes, with the right financial support, joining a cooperative can offer an affordable path to renewable energy ownership.

Sarah Merrick added:

“We wholeheartedly support the Government’s aim to unleash the biggest expansion of community energy in history. Energy cooperatives are communities in their own right, and by implementing these three simple asks, the true potential of community energy in Britain can be realised with nobody left behind or penalised for their contribution.”

ENERGY COOPERATIVES EXPLAINED – RIPPLE’S MODEL

A typical household needs only a share the size of a credit card in a wind turbine to meet their electricity needs for the next 30 years.

Ripple allows households and businesses to collectively own large-scale wind farms and solar parks through cooperatives. The clean, low-cost electricity generated is delivered to them via the grid, by their energy supplier.

Members of the cooperative benefit from reduced electricity bills each month for the entire 25-40-year lifespan of the project, with Ripple managing the entire process, from the construction phase to ongoing operations.

Ripple’s cooperatives bring together thousands of people, both local to the projects and from across the UK, united in their commitment to tackling climate change and reducing energy bills.

Ripple has already successfully launched three projects, totalling £80 million and generating over 60MW of power, now owned by 15,000 households across the UK. These projects include the two largest cooperative share offers in British history.

This year, Ripple also launched a share offer for its fourth project, a 14-turbine, 60MW onshore wind farm located in the Scottish Borders. The company is also in discussions to extend cooperative ownership to the UK’s offshore wind sector.

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