Selling your energy
Utility companies are required to source a percentage of their energy from renewable energy providers, to assist in cutting carbon dioxide emissions. Energy companies will buy the surplus electricity created from a Solar PV system as this helps the energy supplier to meet their requirement.
During daylight hours, the electricity generated by the Solar Photovoltaic (solar PV) system will supply the home and any energy produced which is not required will be sold to the nominated electricity supplier through an approved import/export meter. During periods of high energy use in the home, or when the Solar PV system is unproductive, electricity can be bought back from the network to supplement the Solar PV power supply.
If you are considering installing or have had a renewable technology commissioned which creates electricity, such as a Solar Photovoltaic Electricity, it is likely you will be able to get paid for the electricity it generates. Most of the major utility providers offer a buy back scheme which can often be easy and quick to join.
The 2 most common buy back electricity tariffs are:
Export Tariffs
You will only be paid for the electricity generated that is exported back to the National Grid and therefore not used in the property.
Generation Tariffs
You will be paid for all the electricity that you generate, regardless whether it is used in the property, this is usually a lower tariff than the export tariff.
To ensure you chose the right package for your needs, carefully check the details with each utility provider to ensure it is the correct buy back tariff for you and it meets your needs.
There is now an additional tariff, a 'feed in tariff (FIT)' and details have recently been released. The new tariff scheme officially replaced the Low Carbon buildings Programme grant scheme in April 2010.
Renewable Obligation Certificates (ROCs)
A Renewables Obligation Certificate (ROC) is a green certificate given to an accredited generator for eligible renewable electricity that they generate within the UK; which is the supplied to customers within the UK by a licensed electricity supplier.
One Renewable Obligation Certificate (ROC) = one megawatt hour (MWh) of eligible renewable energy produced.
Suppliers must meet their requirements of the Renewable Obligation Order (2002). If an energy supplier does not have sufficient ROCs to match their requirements, they must pay an equivalent amount into a fund, the proceeds of which are paid back on a pro-rated basis to those suppliers that have presented ROCs. The Government intends that this obligation will apply to energy suppliers until 31 March 2027.
Further information on ROCs can be found on the Ofgem website
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