Households near wind and solar farms could get energy bill discounts under clean power plan

Households living near new wind and solar projects may receive money off their energy bills under proposals being considered by the government to meet its 2030 clean energy target.

As Britain ramps up renewable power generation, ministers are looking into extending “community benefit” schemes, which could see residents offered discounted rates to compensate for living near turbines or panels.

Some green energy companies already operate such schemes. Octopus Energy’s “fan club”, for instance, gives customers within a defined radius a 20 per cent discount on electricity when the local wind turbine spins, rising to 50 per cent when wind speeds are high.

A Whitehall source confirmed that making these local incentives more widespread is on the table: “That is one of the options we are exploring.” This would form part of a broader strategy to accelerate clean energy development and achieve the government’s goal of a 95 per cent low-carbon electricity mix by 2030, as set out by Energy Secretary Ed Miliband.

The government’s new “clean power 2030 action plan,” published on Friday, details how Britain will shift decisively toward wind, solar, and nuclear energy, with gas stations acting as a rare back-up. It also gives ministers in Westminster the power to approve large onshore wind projects greater than 100 megawatts, reversing a 2015 rule set by David Cameron that left final decisions to local authorities. This move is intended to streamline approvals and reduce the risk of local opposition halting developments.

To further smooth the path for new infrastructure, ministers are considering reforms to limit the number of legal challenges that can delay large power stations and grid connections. Following recommendations from a review led by Lord Banner, the government aims to restrict multiple judicial reviews against the same project, without removing the right to legal challenge entirely.

Offshore wind farms are expected to become the backbone of the UK’s power system, supplemented by onshore wind and solar farms. Other innovations, such as solar canopies over car parks, and a substantial increase in battery storage—from today’s 4 gigawatts to as much as 27 gigawatts by 2030—will help balance the variable nature of renewables.

The government is also set to introduce new financial frameworks to encourage the revival of “electric mountains”—pumped hydro storage projects that have been absent in the UK since the 1980s. These facilities store energy by pumping water uphill when electricity is plentiful and releasing it to generate power when demand is high.

Biomass, which involves burning wood, is expected to play a smaller role in the future energy mix, while a new marine recovery fund—paid for by offshore wind developers—will help safeguard marine habitats affected by development at sea.

Miliband said the move toward renewables and nuclear will protect households from volatile global energy markets and stabilize bills in the long term. While experts say the transition may not guarantee lower bills, it promises more predictable and stable energy costs, reducing exposure to global gas price spikes.

Recent data underscores the growth of renewables: wind power outgenerated fossil fuels in the first nine months of this year, with low-carbon sources making up nearly 70 per cent of UK electricity generation.