Being energy efficient around the home is increasing in importance as energy becomes more expensive and the world heads towards a potential global warming crisis.

In previous articles we have looked at how to reduce energy consumption, but the ultimate in home energy efficiency is to actually sell electricity back to the utility companies through renewable technology installations such as solar or wind power.

In order to do that you must install your renewable technology and then enter into an agreement with an energy supplier. According to The Energy Saving Trust there are two main tariffs available for selling energy generated in the home, either an export tariff or generation tariff. However, there is also a series of set price tariffs under which the energy supplier pays for a fixed amount based on the size or capacity of your renewable technology installation.

Export tariff

Under this tariff the excess energy produced by your technology is exported back to the electricity network. Any power produced and subsequently consumed by you is free to you, but you will not receive any credit for it from the utility company.

Generation tariff

This tariff involves you being paid for all electricity generated in the home, regardless of whether it is used by you or exported to the network.

Which tariff is best for you and your installation?

Deciding which tariff is most appropriate depends upon how much energy you anticipate generating against how much you intend consuming. The Energy Saving Trust website has a very useful search tool enabling you to find the most appropriate tariff available in your area based on your generation v consumption calculations. But, as rule of thumb if you are going to use most of the electricity that you generate then you’d be better off with a generation tariff. Conversely, if you are going to use a little of the energy the better tariff would be the export tariff.

New meters & costs

When installing your renewable energy, whether solar or wind you will need to install an Ofgem approved meter at the same time, and it will vary depending upon whether you opt for export or generation. Some utility companies will cover the cost of meters, others will charge so make sure you agree up front. Also, bear in mind that you will probably be limited to getting any supply from the company to which you are providing energy. So, make sure that you do the maths and make sure that you will be saving money by generating your own electricity!

Generating energy through renewable sources may be limited to needing only a partial supply from the grid, but the cost of installing the equipment can be expensive so only consider renewable energy generation if you are willing to take a long term view.

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