Solar gain: Selling power back to your supplier

Is the prospect of selling power back to your supplier reason enough to invest in renewable energy? We get the reaction from early adopters to the Micro-generation Support Scheme

Wed, 03 Aug, 2022 - 18:30

Kya deLongchamps

So, with the Micro-generation Support Scheme explained, you want to get into photovoltaic, and generate some or nearly all of your own renewable power?

Is the prospect of selling excess power back to your supplier with a feed-in-tariff (FIT) a profitable enough reason to jump into this big investment?

Let’s shine some light on the finer detail.

Changes

There are a few changes to the grant aid managed by the SEAI for photovoltaic (PV) since February 16 worth noting. The first is, that your home can have been built and occupied from 2021 or before to qualify, and can have any existing BER. The grant is open to both landlords and homeowners.

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This reduction in the eligibility criteria will mean a lot more homes will qualify going forward.

The SEAI PV grant has been altered to €900 per kWp, for up to 2kWp of array. After that, qualifying applicants will receive €300 per kWp, up to 4kWp. The total cap for the grant is €2,400, with no further grant aid after 4kWp.

You are expected to get a BER carried out at your expense after installation and commissioning, and the grant won’t be released without one (from €180-€250). There is no longer a grant offered for a battery to balance your load and access stored kWh by evening, something that may give you pause.

The total amount will have to be paid up-front to your supplier by whatever financial means you have in place (capital or a low-interest loan mechanism). The grant amount is returned to you or your lender by the SEAI, when the system is installed, commissioned, and the grant process has been finalised (up to three months in practice).

The exception to this would be in the case of a deep retrofit using the one-stop-shop system. The capital outlay for PV remains alarmingly expensive (starting around €3,500 for a 2kWp, grant aided, without a battery).

The first thing you must do to start your PV journey is have a survey done of your roof or PV ground position by an SEAI-registered PV supplier. You can find a list of suppliers at the SEAI’s website.

In just the same way as you would select any contractor, you should tender at least three. This process will generate quotes for you to consider and should include an idea of what your roof or ground array could generate in kWhs per year.

Ask the firm to quote for a choice of systems, with full itemised pricing for a battery and for the inclusion of a water-diverter to your existing hot water tank if desired.

As you go into contract, there should be no monies exchanged for goods and services until you get your grant approval.

You can now get the SEAI PV grant aid of €600 towards an EV charger, even when you don’t own a BEV or PHEV. If you are having solar electric installed, your supplier may be able to handle this on the same day. Picture: iStock

This is a good moment to consider putting in an electric vehicle (EV) charger if you are already considering one (€600 in SEAI grant aid with almost instant online approval whether you own an EV or not — cost to you around €800-€1,200). This is something many PV suppliers can handle on the same day, and link back to a controlling app-managed, home hub.

A standard PV can contribute modest excess to charging an EV (these expectations should be realistic). Electric Ireland calculates that its 2kWp array, south-facing at a 30-degree pitch will save a householder 1,301kWh or €234 per year in power costs without a battery (569kg of CO2 per annum).

After commissioning, the installer will apply to ESB Networks to connect the solar PV system to the electricity network. This will generate your NC6 paperwork and test certificates needed to join the Micro-generation Support Scheme if you have a Smart Meter.

If you are not interested in selling power, there is no onus, in terms of your PV, to change your meter up to a Smart Meter.

Many EV owners for example, prefer to stay with their NightSaver meter to benefit from the current, low, lengthy kWh night rates from 11pm to 8am/9am.

The Micro-generation Support Scheme is likely to start paying back in FIT credit payments by September, I asked a number of users with experience of the technology if they were excited or blanked by the prospect.

Could the Micro-generation Support Scheme chip away at these obligatory standing charges and PSO? Would the drip-feed in credit result in actual profit at the end of 12 months? Their responses ranged from delight to complete scepticism.

Brian Dowling in Dublin recently upgraded to a larger array without grant aid, but has no great expectations of FIT. “I have a 6kW Solis hybrid inverter, 5kWh PureDrive DC battery, and 4.5kWp of solar PV.

This is a recent upgrade from a small 1.5kWp solar PV that came with my 2021 house (typical with Part L compliance). The feed-in tariff was not something that was factored into my plan. If I get some payment for export it will be a bonus, but I expect it to be very small.”

Corrie Crawford

Up in Donegal, Corrie Crawford has just installed her second array after moving from a home where she had enjoyed the benefits of PV.

She explains: “My array is 14 panels at 340W each making a 4.8kW array. I have a (very large) 8.2kWh battery. My opinion on micro-generation is that the public thinks this is going to be a great thing and will put down a fortune on larger arrays.

"I think I’m better off using the electricity I generate. If I can use the little bit of money from micro-generating to reduce my (outrageous) rural standing charge then that’s what I’ll do.”

Corrie’s gain from her roof is impressive. “In one week (July 4 to July 12) I generated 78kWh. Only 10kWh went to the grid and once I’m using my EV (on the way) that will be gone.

Corrie Crawford stands under her 4.8kWp PV array in County Donegal.

“That was actually a bad week and for a few days my battery was running the house because of the heavy grey clouds and constant drizzle. This doesn’t fill me with hope that micro-generating is going to get me early retirement!

“I mentioned this to a few people in work today, none of whom have solar PV or EVs, just to get an idea what people think this is all about. They all thought I was going to either get rich or reduce my electricity bill to nearly zero with micro-generating.”

Kenneth Fallon

In Roscommon, Kenneth Fallon is also about to buy a battery electric vehicle, and intends to integrate this into his highly sustainable life. He has a 7.5kWp array and is patiently awaiting the installation of a 5kWh battery. He is confident FIT will impact his billing.

“I’m expecting around €245 per annum at deemed export if export rate remains at 14c until February 2023.

“I’m expecting to run the car for free for at least four months a year. The other eight months’ production will contribute to our air-to-water HP (heat pump) heating and hot water bill. My solar system was designed with these loads and my work patterns in mind.”

Kieran Hurley

Kieran Hurley lives in West Cork, where he uses a 6kWp array without a battery and generated 800kWh in June alone.

“A quick bit of back-of-the-box maths makes me think selling power for 14c and buying it back for 22c with SSE is not that bad a deal. It’s turned me off the idea of shelling out €5,000 plus for batteries.

"I don’t mind exporting some of what I generate as long as it cuts down on the need for the network to generate using non-renewables.

“Some people here would have a fit (pun intended) if they thought they were giving it away for free. I have an EV that when its home takes everything the PV generates.

“When we are out I have a 300L tank that gets heated by a solar diverter and we use that water for the underfloor heating and showers. I personally think for me there is no return on batteries now with the price of them going up.”