Home Generation: rewarding local renewable electricity

Good Energy has set up the 'Home Generation' scheme, which gives payments to small-scale renewable energy generators for all the electricity which they generate, thus encouraging more renewable generation at a local level.

Large-scale renewable energy generators in the UK set up commercial contracts to sell their electricity, and can also claim Renewable Obligation Certificates (ROCs), which currently sell for about £39 per MWh (3.9 p per kWh). However, for small renewable generators, the time and effort to do this may not be justified by the financial return. In addition, ROCs can be claimed only on an annual generation of 500 kWh or more, which excludes very small generators.

Good Energy has therefore set up the Home Generation scheme, which provides a payment of 4.5p per kWh to small renewable generators for all the electricity which they generate. To join the scheme, generators must buy the rest of their electricity from Good Energy, and must install a simple meter to measure the total kWh generated. Home Generation customers greatly appreciate the simplicity of this scheme, and typically earn about £100 per year through it. There are currently 200 generators in the Home Generation scheme, representing a total installed capacity of 440 kW.

Good Energy set up the scheme as part of their commitment to increasing the use of renewable electricity in the UK. They have used their extensive knowledge of the practicalities of local generation to lobby the electricity regulator and other suppliers, to make the rules for exporting electricity clearer and to negotiate a better deal for small generator

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