Introducing solar energy at home or though business

Introducing solar energy to your home or business can be a great way to reduce your carbon footprint, save money on your electricity bills, and contribute to a cleaner, more sustainable future. Solar devices are a clean, renewable energy source that produces no emissions and has become increasingly popular in recent years. By harnessing the power of the sun, you can generate your own electricity, reduce your dependence on traditional energy sources, and enjoy the benefits of energy independence.

According to the UK government’s Department for Business, Energy and Industrial Strategy (BEIS), solar options are the second largest source of electricity in the UK, accounting for 11.5% of electricity generation in 2020; The BEIS also reported that the total installed solar capacity in the UK reached 13.9 GW in 2020, an increase of 4% over the previous year.

Sell solar power back to the grid: How utility companies could be paying you!

When you generate solar energy from your solar panels, you can use it to power your home. However, there may be times when your panels generate more electricity than your home needs. In such a scenario, you can sell the excess energy back to the grid.

Here’s how it works:

• Net Metering: Most utilities use a system called net metering. With net metering, your utility will install a special meter that can measure both the electricity you consume and the electricity you generate. The meter will subtract the amount of electricity you consume from the amount you generate, and you will be billed only for the net amount of electricity you use.
• Sell Excess Energy: If you generate more electricity than you use, the energy you don’t use is sent back to the grid. Your utility company will credit your account for the excess energy at a rate that is typically the same as the rate you pay for electricity. In some cases, you may even be paid a premium rate for the spare energy you generate.
• Monthly Billing: Your utility will bill you monthly for the net amount of electricity you use. If you generate more electricity than you use, your utility will carry over the credits to your next bill. This is often referred to as “banking” your excess energy.

Overall, selling solar-generated energy back to your supplier is a great way to earn money and offset your electricity costs and help promote renewable sources. However, the specific details of how it works can vary depending on your utility company and location, so it’s important to check with your utility company to learn more about the process in your area.

A report by Solar Energy UK and PwC found that the UK’s residential solar market grew by 18% in 2020, with a total of 223 MW of solar installed on homes, and the BEIS estimates that solar energy capacity in the UK could reach 40 GW by 2030, up from 13.9 GW in 2020, as a result of government policies and falling costs.

How to make money with solar power

If you already have solar panels installed on your property and you generate excess energy, you may be able to sell your solar energy back to the UK grid. Here are the steps to follow:

1. Check with your energy supplier: First, check with your utility provider to find out if they offer a feed-in tariff (FIT) scheme. FITs are designed to incentivize homeowners and businesses to generate green energy and sell it back to the supplier.
2. Register for a FIT: If your supplier offers a FIT scheme, you will need to register for it. You will need to provide details about your solar panels, including their capacity and the date they were installed.
3. Install a meter: You will need to have a special meter installed that can measure the amount of energy you generate and the amount you use. Your energy supplier may provide this meter or you may need to purchase it yourself.
4. Start generating energy: Once your meter is installed, you can start generating energy. Any excess energy you generate will be sent back to the grid and you will be paid for it at the FIT rate.
5. Submit meter readings: You will need to submit regular meter readings to your energy supplier so they can calculate how much energy you have generated and how much you are owed. Some utility suppliers may require you to submit meter readings online, while others may provide a phone or email service.
6. Receive payments: Once your energy supplier has calculated how much energy you have generated and how much you are owed, they will make payments to you either by direct deposit or cheque.

Overall, the process of selling energy back to the grid in the UK involves registering for a FIT scheme, installing a special meter, generating energy, submitting regular meter readings, and receiving payments from your energy supplier.

The Feed-in-Tariff (FiT)

The feed-in tariff (FiT) is a government scheme designed to encourage the uptake of small-scale renewable technologies, such as solar panels, wind turbines, and hydroelectric systems. The scheme was introduced in the UK in 2010 and was closed to new applicants on March 31, 2019.

Under the FiT scheme, homeowners and businesses who generate their own renewable energy can receive payments from energy suppliers for the energy they produce. These payments are made at a fixed rate, known as the FiT rate, which is guaranteed for a set period of time. The FiT rate varies depending on the type and size of the renewable energy system, the installation date, and the technology used.

There are two parts to the FiT scheme: the generation tariff and the export tariff. The generation tariff pays homeowners and businesses for every unit of clean energy they generate, regardless of whether they use it themselves or export it to the grid. The export option pays homeowners and businesses for any excess energy they export to the grid. The rate for the export tariff is typically lower than the rate for the generation option.

The FiT scheme has been successful in encouraging the uptake of small-scale renewable technologies in the UK. It has helped to reduce carbon emissions, increase energy security, and create new jobs in the renewable sector. However, the scheme has also faced criticism for being too expensive and for favoring certain technologies over others.

In 2019, the FiT scheme was replaced with the Smart Export Guarantee (SEG), which requires energy suppliers to offer a tariff to small-scale renewable generator options for the excess energy they export to the grid. The SEG is a market-driven scheme, meaning that the rate for the excess energy is determined by the supplier rather than the government.

What is the smart export guarantee?

The Smart Export Guarantee (SEG) is a scheme that was introduced in the UK in 2019 to replace the Feed-in Tariff (FiT) scheme. Like the FiT scheme, the SEG is designed to encourage the uptake of small-scale clean energy technologies, such as solar panels, wind turbines, and hydroelectric systems.

Under the SEG scheme, suppliers with over 150,000 customers are required to offer a deal for small-scale energy generators for the excess energy they export to the grid. The SEG is a market-driven scheme, meaning that the rate for the excess energy is determined by the supplier rather than the government. This means that energy suppliers can offer different rates for excess energy depending on their own policies and market conditions.

To participate in the SEG scheme, homeowners and businesses need to have a renewable energy system installed on their property, such as solar panels or wind turbines. They also need to have a meter installed that can measure the amount of energy they generate and the amount they use. The meter must meet certain technical specifications set by the energy regulator, Ofgem.

Once a homeowner or business is registered for the SEG scheme with their energy supplier, any excess energy they generate will be automatically exported to the grid and they will receive payments for it at the rate offered by their utility supplier. The payments can be made either in the form of a credit on their energy bill or as a separate payment.

Overall, the Smart Export Guarantee (SEG) is a market-driven scheme that requires energy suppliers to offer a tariff to small-scale energy generators for the extra energy they export to the grid. The scheme is designed to encourage the uptake of small-scale renewable energy technologies and to help reduce carbon emissions in the UK.