What is microgeneration?

We’ve helped over 100,000 businesses
We’ve helped over 100,000 businesses

Can it help save money on your business energy?

Microgeneration is a term used to describe energy production on a small scale. Micro generation centres are used by businesses and domestic properties to create their own renewable energy. Microgeneration of energy can help businesses reduce the cost of their energy and in some cases, it is even possible to sell excess energy to the national grid. Despite these potential cost savings, many businesses are unsure exactly what microgeneration is and how they could benefit.

What are the benefits of microgeneration?

Microgeneration simply means that your business produces some or all of the energy used via renewable sources. There are a variety of ways businesses can produce energy and businesses of all sizes could benefit. The main benefit to businesses is the ability to save money on energy costs, although your business will also benefit from a more socially conscious way of consuming energy.

Here in the UK, the government has created various incentives to encourage businesses to increase their use of green energy. For example, the Climate Change Levy will provide your business with subsidies on its energy bills and grants to install renewable energy technology. A great example is the Non-Domestic Renewable Heat Incentive, which provides funds towards microgeneration.

As demand for energy increases, energy prices also increase, and microgeneration could help your business avoid these potential price rises. Although there may be a significant financial outlay to begin with, microgeneration could save your business a lot of money and the system itself could eventually pay for itself.

Can I sell excess energy back to the grid?

It may also be possible to sell electricity to the national grid, if your business is able to produce excess energy. Unfortunately, the current Feed-In tariff scheme closed to new applicants on March 31 2019, however if your system was already installed and you submitted an application before this date, you will still be eligible. If your business missed this deadline it is worth contacting your business energy supplier, as alternative deals may be available.

What is the Renewable Heat Incentive (RHI)?

This is a government initiative which aims to encourage investment in renewable heat technology, based on a target of achieving 12% of all heating being produced by renewable energy sources. The incentive provides cash payments to businesses, homeowners and communities which fit the requirements of the scheme. The exact amount available varies and is decided based on the latest tariffs available, the technology installed and your metering system.

What are the best forms of microgeneration?

There are many forms of microgeneration available to businesses, although not all will be suitable for your business. You should consider the type of energy system which will provide the most benefits to your business, based on factors such as your location and the types of power you are able to easily access. A great example is Solar PV, which involves solar panels being fitted on your premises to face the sun.

The panels turn the sunlight into electricity and 50% of all energy produced is sent back to the national grid. These systems can work well with solar thermal systems that are designed to heat water. Another common option is small scale wind power, which is ideal if your business is situated in an exposed area with an average wind speed of more than 6mph. However, it is worth noting that turbines are large, and you will need planning permission.

Depending on the type of business you run, a biomass system could provide energy through the burning of organic material. This will allow your business to turn materials such as food scraps or animal manure into electricity and heat. If your business is looking to save money on its energy bills, our team can help you compare business energy suppliers to help you find the best deal. To find out more please, please contact our energy team today.

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