Citizens Advice responds to DESNZ’s consultation on assessing the case for community batteries
Overall, we are supportive of the proposals outlined in this consultation, and feel that there is a case for community batteries in areas where individual assets are either not feasible (such as blocks of flats), or out of reach for consumers (e.g. due to household finances).
There are, however, outstanding questions that we feel DESNZ should clarify in this programme of work, to better evaluate how these proposals could benefit consumers.
Interaction with the Warm Homes Plan and Warm Homes Fund
There is little detail in this consultation on where the funding for community batteries will come from, and how it will interact with the Warm Homes Plan. While the Warm Homes Fund (WHF) could offer an opportunity for loans for this technology (vital for supporting low income households), we would not want its core purpose to be diluted. Our preference would be for additional funding to be available specifically for community batteries under the WHF, or via GB Energy’s Local Power Plan.
The consumer protection framework
One major issue in the low carbon technology sector is the fragmented consumer protections framework. This risks consumer harm through poor-quality installations and an unclear redress pathway, and can result in a lack of trust from consumers, which in turn will slow the adoption of new technologies. As outlined in our previous research around consumer protections, the creation of a single, mandatory accreditation scheme, along with simple redress routes and access to advice, is vital. This is especially true for community batteries, due to the problems arising from multiple responsibilities (such as community energy groups, battery companies and electricity suppliers).
The context for this consultation is important. For millions of households the cost of living crisis has become a monthly reality. Following the surge in energy prices in 2022, millions were pushed into hardship just trying to keep the lights on, and their homes warm. Although average bills have dropped back from their peak, they are still far higher than they were 5 years ago. But incomes and bill support mechanisms have not kept up. In July 2026, the energy price cap rose by 28% for gas and 6% for electricity, driven by the conflict in the Middle East. Global instability continues to threaten consumers with unaffordable bills, with over a third of households worrying about affording their bills. The new PM has already signalled that he recognises the importance of tackling high energy costs, by temporarily cutting VAT for domestic electricity bills. This will give households some welcome respite while the Government works up more long term action to support households. We stand ready to work with the UK government and the rest of the energy sector to start turning the tide on the cost of living.