Should domestic households foot the bill for a green grid?

Shifting to low-carbon electricity isn’t cheap. In 2016 the Committee on Climate Change predicted that ‘meeting the fifth carbon budget’ could add around £95 to the annual bill as the increased wholesale costs get passed onto customers.

When you think about the upgrades needed to the network to be able to store energy such as batteries, and the initially high price these come at it makes sense that the costs go up.

And while it’s inevitable that these costs will come down and start paying back the investment, should the consumer have to pay towards the overheads?

We should all be doing our bit to move to clean, decarbonised energy but many of us already make great efforts to do this - like being with a green energy supplier or our taxes going towards government projects. Could we see more from private investment?

“Private investment”† wants a return on that investment, which only increases the eventual cost to the energy consumer. The fewer “fingers in the pie” the better.

† or indeed any sort of external money source (eg government - though they might accept a lower return than some)

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Hi @stevefoster

Yes, that is a great point and would have short term gain for possible long term pain!

The Committee on Climate Change’s paper is interesting. They also say that the increase in price is likely to be more than offset by continued improvements in energy efficiency which will lower usage and therefore consumer bills.

I guess the question here is how do those who cannot afford these home improvements make them - schemes like ECO and greener home grants look promising in addressing this!