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Selling or storing electricity

Lisa Herron - February 2007
environment.unit@kirklees.gov.uk

Conventional fuel prices are increasing, however renewable energy costs are reducing. Renewable energy installations can earn money by replacing the electricity usually bought from a supplier or by selling excess electricity back to the National Grid.

Renewable energy technologies generate electricity when the wind is blowing or during daylight hours and this energy is used first by the building before taking energy from the national grid. The renewable energy is not stored unless a battery is installed. Batteries can be installed with a system; however this will increase up front costs and regular maintenance may be required.

Without batteries any excess electricity generated 'spills' back on to the national grid. There is the opportunity to sell this energy back to suppliers. Kirklees Council conducted research on behalf of householders involved in the SunCities solar PV project in Kirklees in August 2005 to explore the options for selling back electricity. It was apparent that it can be very difficult for a householder to sell back electricity - it is a complex process and may involve switching to a more expensive electricity tariff. If you would like more details about this research, please contact Kirklees Council Environment Unit.

Since the research conducted in August 2005, the situation has improved. There are a number of suppliers who will offer to buy back energy from householders. It is advisable to talk to your electricity company first to investigate whether it is necessary to switch tariffs and how this will impact on the cost per unit paid for energy consumed versus how much is paid per unit generated.
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