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The Feed-In-Tariff is gone, Long live the Solar Export Guarantee.
Energy supplier to offer a fixed payment for all surplus power that is exported to the grid, and at a fair market price.
Now that the Feed-In-Tariff has closed for all new Solar PV installations, people have been considering what they can do with their excess electricity that their roof generates. Octopus Energy is the first energy supplier to offer a fixed payment for all surplus power that is exported to the grid, and at a fair market price.
The company is also offering a ‘smart tariff’. This will enable homes with Solar and battery storage, that can control when they export power to the grid, to potentially benefit from even higher rates by exporting at peak times when power is more expensive.
Chris Hewitt of the Solar Trade Association said: “We are delighted for the solar industry and for the nearly two-thirds of homes in the UK that want to go solar. Full credit to Octopus who are technologically ahead of where the system is at and who are first off the mark in offering an export payment at a good market rate – indeed slightly above the previous export tariff. The “Outgoing Agile” Octopus offer also underlines the tremendous potential value of installing battery storage alongside solar. Homes with the flexibility to control when they take power from the grid and when they put power on to the grid will be able to save and earn more. This development offers householders today a doorway into participating in the exciting clean energy grid of the future.”
Octopus Energy, so far, is the only energy company offering a Solar Export Guarantee (SEG), though there are other suppliers offering trials and incentives.
With a rate of 5.5p/kWh being offered by Octopus this is fractionally higher than the previous export tariff and, in the view of the Solar Trade Association, constitutes a fair payment. The STA is keeping a close eye on the market for any future developments and offers. These will be recorded by them in their online league table.
The Octopus offer will mean that people will still be able to invest in Solar and get a payback in around 10 years. Homes that also invest in battery storage alongside Solar will benefit from paying 5% VAT on their battery system as opposed to 20% if it is retro fitted.