Disappointment at the outcome of climate talks in Copenhagen (Financial, 15 January) must not distract from the urgent job of building a low-carbon economy in the UK. We believe the generation of small-scale renewable energy can make a substantial contribution to this objective, but are concerned by the lack of ambition of the government's proposed feed-in tariff scheme. This currently aims to generate just 2% of the UK's electricity from small-scale renewable sources by 2020.

Local, decentralised renewable electricity generation has advantages beyond cutting carbon emissions. Businesses generating their own clean electricity will reduce their energy bills, increase their competitiveness and reduce their vulnerability to future fossil energy price rises. Communities can gain an income and a stake in the creation of a low-carbon economy, and households, social and private landlords and local authorities can cut energy bills and tackle fuel poverty. It will also generate many jobs.

Setting higher feed-in tariffs for small-scale renewable generators could treble the amount of renewable electricity generation by 2020 compared with the proposed scheme. This additional generating capacity is the equivalent of the output of Drax coal power station or two-and-a-half times the output of Sizewell B nuclear plant.