FOLLOWING THE closure of the UK’s Feed-In Tariff scheme yesterday, Octopus Energy has announced that it will offer homeowners a simple fixed payment for all surplus power exported to the grid at a fair market rate.
The energy supply company is also offering a ‘smart’ tariff, which 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.
Solar Trade Association (STA) Chief Executive Chris Hewett 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.”
So far only Octopus Energy is offering a Solar Export Guarantee (SEG), however, other suppliers are offering trials and incentives. The rate of 5.5p/kWh on offer from Octopus is fractionally higher than the previous export tariff and constitutes a fair payment in the view of the Solar Trade Association. The STA is monitoring the market closely for any developments and offers, and recording these in its online league table.
The Octopus offer means that people who are home all day will still be able to invest in solar with a payback in around ten years. Homes that invest in battery storage alongside solar power benefit from paying only five per cent on their battery storage system, instead of 20 per cent for retrofit systems.