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Support for microgenerators increased this month

Posted by Graham Eastwick on 20 April 2009 at 8:42 am

Financial incentives for people generating electricity with photovoltaic solar panels (PV) are provided though the system of renewable obligations certificates, (commonly referred to as ROCs).

All electricity providers have to buy these certificates each year, in proportion to the amount of electricity they sell. This started at 3 per cent in 2003 and the intention is to increase it to 15.4 per cent by 2015.  They can either generate their own renewable energy or buy certificates from other generators. If they fail to secure enough each year they must pay a fine.

Since April 1st you get two ROC for each MWh of renewable electricity generated, this is up from one ROC previously. One ROC currently has a value of around 10p per kWh.

For home generators the electricity companies have a variety of schemes to make it easy for you to sell your electricity, and the prices they pay you have gone up to reflect the introduction of double ROCs. Selecting the best scheme for your will depend on how much electricity you use during the day. Scottish and Southern will pay 28p / kWh for the electricity you export, Good Energy will pay 15p / kWh for every kWh you generate even if you use it yourself. This will generate an income between £127 and £221 each year per kW peak of installed capacity.

The introduction of double ROC’s has the potential to decrease the actual kWhs the electricity companies have to supply from renewables. However, at the same time as double ROCs were introduced the percentage of supply that must be covered by ROCs increased from 9.1 to 9.7 per cent. I believe that the assumption is that as most of the ROCs will come from large scale projects, the impact of the double ROCS for microgenerators will not distort the market significantly and we will still see a growth in the kWh of renewable energy year on year.

photo by Kevin Miller

About the author: Graham Eastwick is a director of Encraft, and manages renewable energy installations for home owners, community organisations and small businesses across the UK.

If you have a question about anything in the above blog, please ask it in the comments section below.

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Comments

2 comments - read them below or add one

roc-port-nw6-3ph

Roc-PortComment left on: 28 April 2009 at 1:39 pm

We promote the generation of Renewable Energy by offering FREE ROC trading for all microgenerators.

There are no brokerage fees and in this way, the microgenerator receives the full value of the ROC which they sold via the auction.

We have had successful auctions in the past and want to promote a route to market for the smaller player, where they are not disadvantaged.

roc-port.com works with the community to help them with all their ROC issues!

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Cathy Debenham

Cathy DebenhamComment left on: 23 April 2009 at 8:35 am

The double ROCs also apply to wind turbines, but S&S's 28p rate doesn't.

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