Sell your own energy

05/06/2009 by David Slade.

Did you know you could be making money from the electricity generated by your renewable technology installation?

If you have installed, or are thinking about installing, a renewable technology which produces electricity, such as a Solar Electricity (PV) system, you may be able to get paid for the electricity it produces. The most common way to do this is to sign up to a buy back scheme with an energy supplier. There are two main tariffs available to do this:

• Export tariffs: You are only paid for the electricity that is exported back to the electricity network (you are not paid for any electricity you use).
• Generation tariffs: You are paid for all of the electricity that your system has generated even if you use it in your own home.

There are also some Set Price Tariffs available where a fixed amount is paid by the energy supplier based on the type or capacity of the installation.

Choosing the right tariff

The answers to the following questions should help you choose the right buy buy back tariff for your situation:

Do you expect to use most of the electricity you generate at home?

If the answer is yes, it is likely that a Generation Tariff is likely to be a better option for you as you will get paid for all the electricity you generate rather than just the electricity that is exported.

If you will be using a small amount of the electricity your system generates then an Export Tariff may be a better option for you.

Will you need to install a new meter?

• Total Generation Meter: Most tariffs will require you to have an Ofgem approved Total Generation Meter which should be installed with your system. Total Generation Meters give a running total of the electricity generated by the system in kilowatt-hours (kWh).
• Export Meter: Most export tariffs require you to have an export meter installed. Some companies will pay for the meter and its installation whereas others may charge you. It is important that you establish the costs before agreeing a contract.

Will it affect your import supply?

Most buy back tariffs are dependent on the customer getting their import supply from the same energy supplier, and some suppliers limit the choice of available import tariffs that can be used.

You should check tariffs are on offer from the supplier purchasing your electricity generation and how much your annual bill will be. You will want to take these costs into consideration alongside the export/generation tariff payment.

What else should you consider?

Renewable Obligation Certificates (ROCs) are certificates given to registered generators of renewable electricity produced and sold within the UK. You will be entitled to one certificate for each megawatt hour (or 1,000 kilowatt hours kWh) of electricity you produce.

Some tariffs include a price for ROCs whereby the energy supplier acts as the ROC agent, claiming ROCs from Ofgem on behalf of the customer. However, there are other tariffs where the customer retains the ROC entitlement and must claim these themselves. For ROCs to be able to be claimed you must have a Total Generation Meter installed. Information on which tariffs include a payment for ROCs can be viewed by looking at the tariff details on our buy back tariff search tool.

Some suppliers include the payment for ROCs within the tariff, this means the ROCs are claimed by the energy company on the customers’ behalf. If the tariff does not include payment for ROCs then the customer can claim for them separately.

Posted in Set Price Tariffs, Total Generation Meter, Export Meter, Generation tariffs, Export tariffs, Renewable tariffs, Renewable Obligation Certificates (ROC), Renewable energy | No Comments »