Tuesday 26 March 2013

Avoiding a Middle Class Revolution


Feed in tariff schemes for small scale renewable generation have been heavily criticized for being reverse Robin Hood – taking from the poor and giving to the rich (see George Monbiot’s polemic in the Guardian for a good example) but is this characterization fair?

In the case of the feed in tariffs, to receive the feed in tariff you need to own a roof and have around $10,000 to invest in the installation. These criteria clearly rule out most low income people. In addition the tariffs are paid through increases in energy bills for all consumers with those on the lowest incomes likely to suffer the impacts of these raises the most. However, while in many ways astute, within this critique one important fact is overlooked – people can act collectively. While the lowest income people – often living in high density rented or social housing do not as individuals have the material and financial assets needed, when acting as, for example, a collective of residents in a tower block, they may.

Residents can group together to take advantage of resources such as a shared roof to site a solar installation significantly larger than most installations on individual residences. Because the size of the installation and its potential revenue it is then possible to get funding through the selling of shares to those both within and outside the community. Residents will still reap the benefits of cheaper, low carbon energy even if they do not own shares, and shareholders will receive a return on their investment.

Through charities, social enterprises and cooperatives, community energy projects have the potential to take advantage of collective resources and harness the funding stream provided by the feed in tariff in a way that will generate returns for those on low incomes. It is up to local governments and community groups to facilitate the organization of such projects and ensure that the green energy revolution need not be restricted to the roof owning middle class.


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