Rationalising Micro-generation Exports

In this insight paper, we set out a four-part solution to ensure the continuation of a guaranteed route to market for micro-generation exports as the Feed-in Tariff (FiT) scheme closes to new investment from 1 April 2019. This paper builds on the September 2018 UnFiT for Purpose insight paper, in which we argued for a safety net for export volumes from smaller micro-generation installations.

Our new paper argues that deeming of export volumes for new sub-30kW installations should be retained to ensure parity with existing FiT installations. Critically, there is a need for transitional measures to be introduced into the Balancing and Settlement Code (BSC) ahead of the completion of the smart meter roll-out and the associated industry work programme to implement market-wide half hourly settlement. We provide four workable options that would allow deemed export volumes to be recognised within the electricity industry settlement system, and therefore provide an incentive—which currently does not exist—for suppliers to contract with the smallest of generators as part of their wider commercial strategy. Importantly, this will preserve incentives to install smart metering (that can measure export volumes) and allow market access for new and existing installations where present metering arrangements and industry incentives result in volumes ‘spilling’ on to the system.

Request a copy of the paper here.

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