Understanding Your Home Energy Bill
Research has shown that around 60% of people find their energy bills confusing. Here is your electricity bill is broken down.
March 2021
| Money Saving
Microgeneration allows homeowners and businesses to generate their energy. They get paid for any excess gas or electricity that they export back to the National Grid.
Read on to find out more about microgeneration and its benefits.
Microgeneration is when households or businesses generate their energy. This energy generation is on a small scale and is cost-effective.
It can sometimes be referred to as Microgen Energy, where the production of electricity or heat from a low-carbon source acts as an alternative or supplement to traditional national grid power. You can also sell any excess energy back to the grid.
MCS stands for Microgeneration Certification Scheme. It is a standards organisation that assigns a quality standard to products, stallers and the installation of these products.
The Microgeneration Certification Scheme (MCS) certifies low-carbon products and their installations, which are then used to produce electricity and heat from renewable sources. MCS is a mark of quality and standard, much like being a Gas Safe registered engineer.
You can earn money by selling any excess energy you generate to the national grid. This was known as the government’s Feed-in-Tariff (FIT) scheme. The Smart Export Guarantee (SEG) replaced the FIT scheme in 2019.
SEG measures the energy exported to the National Grid. This is then calculated and paid. You can look to earn a flat rate for every unit of power you export, usually around 4.1p per kWh. The best SEG tariff energy provider is currently Scottish Power at 12p per kWh.
Homeowners and businesses can receive payments through the Renewable Heat Incentive Scheme. This is for any renewable heat technologies they have installed (e.g. biomass boilers and solar water heating). The government aims to increase the amount of heat generated by renewable sources to 12%. This initiative helps towards that goal.
Payments are made over seven years and depend on the type of renewable technology you use. It depends on the amount of clean and renewable heat you generate.
You must obtain a valid certificate for the Microgeneration Certificate Scheme (MCS) to be considered. This confirms that your renewable installation is working. The renewable energy source must be installed by an MCS-certified installer. Find an installer here.
There are quite a few renewable energy options available. Location and space tend to dictate which renewable sources are suitable.
Solar Panels – PV panels are made from silicone and are used to capture sunlight. This is converted into electricity. Solar panels are easy to install and are available through cladding, roof tiling or custom glazing. Direct sunlight is not required to generate electricity. They are at their best when sunlight is strong.
Wind Turbines - Wind turbines use wind power to generate energy. The blades on the turbines rotate and this energy is used to create electricity. Domestic wind turbines tend to be pole-mounted or building-mounted. Significant space is required for this renewable source. Wind turbines work best in areas that have frequent high winds. The stronger the wind power the more energy is generated.
Hydro Power – This renewable option uses energy from the running water of a stream or river. The energy propels a turbine connected to a generator and electricity is created. The more water that flows through the turbine, the more energy is generated.
Anaerobic digestion - This involves the breaking down of organic matter. This could be as food or animal waste to produce biogas. This process is completed without oxygen. The biogas produced contains methane – which is used to generate energy.
Microcombined heat and power – This technology can provide heat and electricity at the same time. It is powered by mains gas or liquid petroleum gas (LPG). It is deemed energy-efficient as it has low carbon emissions. It is a lot more efficient than using fossil fuels.
To help you decide whether microgeneration is suitable for you, below we outline its main pros and cons:
Pros
Cons
For domestic properties, the Feed-in-Tariff and Renewable Heat Incentive schemes are available. There are more funding options available for businesses. These include:
You can still switch energy suppliers if you have a Feed-in-Tariff (FIT) or Smart Export Guarantee (SEG) scheme. You can even choose to purchase energy from one supplier and receive your FIT/SEG payments from another.
Comparing energy prices and switching suppliers helps you find a better deal for your home or business energy. Try our free online quote engine today to find the best energy tariffs available on the market.
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Research has shown that around 60% of people find their energy bills confusing. Here is your electricity bill is broken down.
March 2021
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