European policymakers are currently finalising the new Electricity Market Design Regulation and Directive, key pieces of legislation to deliver solar and renewable based electricity markets in Europe.

A critical issue that has emerged in the discussions is the market design for small-scale renewables. A proposal was put forward calling for the removal of incentives for small installations. If approved, it could severely deter individuals and communities from investing in small renewable installations on their home, school or business – in effect, slowing the energy transition.