Birmingham’s energy community: Low-cost, sustainable power for city-centre buildings

Written by Philip Singleton, project manager at Colmore BID

Birmingham's rooftops have enormous, untapped potential.

That potential relates to the energy we can obtain from the rich resources of the sun, wind and waste streams available to us.

Why then, when the technologies that can unleash this power to the benefit of our society have been available and affordable for decades, do we still rely so heavily on burning fossil fuels and nuclear power stations, sometimes hundreds of miles away?

Why, if you fly over our city, do you see so many roofs without a single solar panel installed?

The answer lies in the lack of a business model that is equitable for all participants.

To put it another way, a business proposition is only as strong as its weakest link.

Colmore BID is committed to helping our business community to run sustainably on low-cost, clean power, in a way that benefits our society as a whole.

This is why we’ve established a partnering arrangement with a company called ConsensusPower. 

Their key people have a long history in providing affordable, clean power to low-income households: 12,000 rooftops (mostly social housing), at the last count.

Most impressive was the fact it was all funded in a commercially-viable way.

Imagine a table, and sitting around it are all the market participants: the landlord, tenant, solar installer, service-provider, investor, local councillor and any member of the local community.

Typical business models today provide most of the financial rewards to the party funding the project, as in “money makes money”.

In contrast, the Birmingham Energy Community works on the principle that each party’s rewards are proportionate and equitable, based on their respective inputs and their stake in the community.

Iain France of ConsensusPower tells us more.

What is the Birmingham Energy Community?

We install solar panels on as many viable, commercial rooftops as possible across the city.

The installations are fully funded, so no capital cost is required from the landlord.

All the technical and commercial work needed, including surveys, planning permission and grid connections, are completed by us, at our risk.

Landlords receive a payment for every kWh of power consumed within their buildings. So, they receive an income for the lifetime of the assets, with no risk and no up-front cost.

They also benefit from an improved EPC rating, increased asset value and a better experience for their tenants.

Building occupants benefit from low-cost, clean power from their rooftops.

What is the Peer-to-Peer (P2P) energy platform?

A key innovation is P2P, which means that overspill power can be transacted between buildings within the city. This reduces costs considerably, compared with the conventional power trading model.

It also enables commercial ‘out-of-town’ renewable generators to top up the power supply. Businesses can enjoy low-cost, locally-produced, clean power even if their rooftops are not suitable for solar.

Importantly, P2P utilises the existing grid infrastructure. Tenants just need to switch from their existing electricity supplier to ConsensusPower at the end of their contract.

Explain the community benefit

For every MWh of power traded within the Birmingham Energy Community, ConsensusPower will donate £2 to local charities for the lifetime of the project, which could be up to 40 years.

Local businesses benefit from keeping more of the economic activity relating to the production and consumption of energy within the city.

All assets are first offered for investment to the people of Birmingham via crowdfunding, meaning that financial surpluses are retained within the community.

Why should I participate?

There are multiple benefits to building owners:

• No risk – studies completed at no cost to you

• Long-term income with no capital cost

• Increased asset value and EPC rating

• Improved tenant experience

• Supports your ESG goals

• Helps your local community

Tenants simply gain access to low-cost, locally-produced, clean power.

How can I participate?

Landlord - Have rooftop solar installed (at no cost to you).

Tenant - Purchase low-cost, clean power from your rooftop.

Switch your import supply to ConsensusPower, so all your power is supplied from the Birmingham Energy Community.

What next?

Whether you’re a landlord or a tenant, all you need to do is to jump onto our website and submit an Expression of Interest.

There is no cost to you, nor any obligation whatsoever. Someone from the ConsensusPower team will be in touch to see if we can help.

Let's make Birmingham greener, together.