Member Article

Bonus for green homes

Households that install their own energy generation systems such as solar panels and wind turbines should be offered a minimum price for selling their spare power back to the electricity networks, according to a new report.

The document, issued by the gas and electricity regulator Ofgem, warns that mainstream electricity providers faced the risk of legislation if they did not take action to make it easier for members of the public to sell their excess power. According to Ofgem, there are 80,000 micro-generation units in British homes. This figure is set to grow in the near future as major retailers are now selling many of these, such as small solar panels and rooftop wind turbines.

Ofgem said it urged suppliers to simplify the process of installing the units and selling any surplus electricity produced. The regulator said that current arrangements were too complex and some households were not even being paid for the power they are putting into the grid.

Alistair Buchanan, Ofgem Chief Executive, said: “Ofgem has been identifying issues that are preventing further growth of microgeneration. Suppliers need to compete against each other to raise their game and address these issues so they can respond to the growing numbers of customers that want to generate their own power. If they are unable to successfully do that, then new legislation could force us to set prices and terms for the sale of surplus electricity back to the networks.“Ofgem will also play its part by removing any regulatory barriers to microgeneration through our review of gas and electricity supply licences.”

Dave Sowden, Chief Executive of the Micropower Council, said: “The micropower industry welcomes Ofgem’s commitment. “The regulator has a key role to play in the wider government strategy for the micropower industry, and we look forward to continued constructive working with Ofgem as it implements this set of proposals.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .