An arial view of a city lights at night
Thursday 4th of July 2019 | Posted In: Buy and Sell, Generate

How to get 50% more for your electricity

If you generate electricity and sell your surplus to the grid you might have spotted that the gap between the price you receive for your exported energy and the price you pay to buy from the grid seems to be growing.

It’s true, and the difference is set to increase as green taxes levied on the electricity we buy get steeper, TRIAD benefit on export is on the way out and the way we pay for the network itself changes. So, what can you do to narrow the gap?

In a few years’ time the answer might be ‘batteries’, but that’s a tough business case at the moment. So how about selling electricity to your neighbours?

Say you’re getting 6p/kWh for your export and they’re paying 12p/kWh to buy electricity from the grid – meet in the middle at 9p and you’re both making a decent win.

So how can you go about it?

  1. Feasibility: there’s quite a lot to think about here.
    Who are your neighbours? Domestic properties are a no-go for all but the biggest projects.
    How much surplus electricity have you got and how much will your neighbour(s) need?
    What infrastructural changes will be necessary and how much will they cost?
  2. The agreement: meet in the middle on price – that’s easy.
    But how can you consistently find the middle once your buyer has been with you for a year or two?
    What if they still need to buy some electricity from the grid?
    What happens when something breaks?

What about capacity charges? Who’s paying for the connection?

  1. Running it: this is mostly about clear, transparent billing, keeping on top of changes and reviewing your prices every now and then.

 

Selling electricity to your neighbours is probably not quite as simple as it first sounds. But worth it to increase your revenue from electricity sales by 50%? If you think it might be, give us a call.