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Decc planning a new community energy FIT rate

A Feed-in Tariff (FIT) designed for community energy projects is being considered by the Department of Energy and Climate Change (Decc).

Decc has proposed in a consultation to double the size of community energy projects eligible for a FIT to 10MW.

This change would apply to solar, anaerobic digestion, hydro, and onshore wind generation schemes.

The government is also assessing options to redefine the definition of a “community organisation”, although this is unlikely to allow registered charities to the list of acceptable entities.

Decc also proposed to allow for community and commercial partnerships to be eligible for community energy FIT agreements, as long as the community ownership is maintained.

Another option put forward is to allow community groups to own a percentage share of a generation project, without ownership of individual generation units, and still be eligible for a FIT for up to 10MW.

The consultation closes on 7 July 2014.