This really has been a long time coming. There have been many barriers to energy storage in the UK, and this 'double charging' has been a significant one. Since the changes to the Capacity market last year, there has been relatively little large scale deployment in the UK. Hopefully this will now help change the situation, and we'll sees some of our clients and others able to deploy storage assets. The situation in the US, whilst varying state by state, is a different picture, with our US team working flat out to help find talent for energy storage developers.
Let's not forget though we still have a lot of battling to do with our legislators and government. We've just seen in the UK residential storage given a kick in the teeth, with VAT rising from 5% to 20% of solar and storage installations. So much for a climate emergency! But we, along with our clients and friends will keep shouting and fighting long and hard for the clean energy and mobility transitions.
A formal definition for energy storage has been a long time coming. And for an industry that has been paying double and campaigning for its end, Ofgem’s consultation on the implementation of a formal definition is a much-awaited victory. Until a definition is fully implemented, energy storage assets face double charging, paying for both the electricity they import and export. Ofgem’s plans would make amendments to the electricity generation licence, classifying storage as a subset of generation. Under that classification, providers would no longer have to pay final consumption levies.