What types of renewable generators qualify for the Smart Generation scheme?
Our Smart Generation scheme includes solar photovoltaic, small-scale wind, small-scale hydro electric and sustainable biomass generators. Smart Generation is for installations less than 75kW installed capacity that are capable of exporting more than the minimum export threshold over the course of a year.
If your generator is outside of the above boundaries then please see what other schemes may be suited to your generator or call 0845 456 1640 for more information.
How do I get permission from my local distribution company to connect to their electricity network?
Before connecting your renewable generator to the local electricity distribution network, you will need to comply with the regulations of your local distribution company. This is a safety regulation that must be complied with and your installer will advise you on this process. To obtain further details on this you need to contact your Local Distribution Company.
Why do I need an Ofgem-accredited total generation meter?
In order to qualify for the Smart Generation scheme your renewable generator must be accredited for ROCs, LECs, and REGOs. All renewable generators are now entitled to receive ROCs, but they must have an Ofgem approved total generation meter installed at the inverter and must go through the accreditation process in order to be issued ROCs by Ofgem.
How can I check which Total Generation Meters are Ofgem approved?
A list of Ofgem approved meters can be obtained from www.ofgem.gov.uk or download here.
What happens if I already have an export meter installed?
If your export meter is fully compliant with the electricity network then all we need to do is register your export meter on the electricity network. This may be as simple as us taking over the meter from your previous supplier, or it may require you to obtain a supply number (MPAN) before we can register your meter.
If your meter is not compliant then we will have to install a new meter for you. There is a cost associated with this meter (approximately £60 - £90) and we will pass this cost onto you. Please note that we will only install Non Half Hourly (NHH) Export Metering.
What happens to the electricity that I generate?
The electricity that you generate is either used on site by you or physically added to the local electricity distribution network. We hope you find this diagram helpful in illustrating how a typical Smart Generator generates and uses the power, exports an amount power back to the local distribution network and also imports electricity from the local distribution network when they are not generating enough electricity to meet their needs.
How much electricity can I expect to Generate and approximately how much will I get paid?
Good Energy pays Smart Generation customers an amount for every unit of renewable electricity generated (the Renewable Benefit) and a payment for all export units (Export Benefit).
Your installer should be able to estimate the average annual generation, and how much electricity you will use annually. From there you can estimate how much you will be paid from Good Energy’s Smart Generation scheme.
What does the price that Good Energy pays its Smart Generators consist of?
Payments received on the Smart Generation scheme are made up of two parts:
- Payment for the Renewable Benefit attached to the renewable electricity generated by your generator. These renewable benefits are known as ROCs and REGOs, and are not a payment for the renewable electricity itself.
- Payment for the exported units of electricity from your generator to the local electricity grid, less an annual charge for metering the export over the course of a year.
Once I have signed up, how will I be paid?
Smart Generators are paid separately for exported units and renewable benefit:
- Export Benefit is paid for on a quarterly basis in arrears as long as the generator has provided monthly export meter readings. The charge for metering the export is deducted from the export benefit income.
- Renewable Benefit is paid for in arrears on transfer of ROCs to the Good Energy account as long as the number of ROCs to be transferred is more than the minimum ROC transfer threshold or the date is near the long stop date.
What is the minimum ROC transfer?
The minimum number of ROCs that can be transferred to Good Energy in order for Good Energy to pay for the transferred ROCs, will be specified in our pricing offer to you. Good Energy imposes a minimum ROC transfer threshold in order to keep our administration costs to a minimum and so that we can pass on the maximum benefit to you.
Useful Definitions
Connection agreement: Permission from the Local Distribution Company to connect your generator to the local electricity distribution network. There are different connection agreements depending on the installed capacity of your renewable generator; G83 Compliance is for generators less that 16A per phase and G59 is for all other generators.
Export: Refers to any electrical power that is generated by a renewable generator, which is not used on site at the property, but passes onto the local electricity distribution network through a settlement export meter.
Please note: The ‘Export Generation’ figure may be less than the ‘Total Generation’ figure due to any on site demand at a site which decreases the amount of electricity available for export as the generated electricity is preferentially used at the site before it will pass through an export meter.
Export Metering Charge: In order for generators to be paid for their export an official settlement export meter must be maintained at the site of the generator. The cost of administering this export metering is passed on to the generator as an annual export metering charge spread over the course of the year.
Electrical schematic diagram: A simple diagram of the electrical connections for your renewable generator, such as the one below. It should include the generator, import meter, any export meter, and the inverter and associated wiring.
Good Energy’s 100% renewable supply: Good Energy supplies 100% renewable electricity to homes and businesses in the UK. This means for every unit of electricity you import into your property, we buy one from renewable generators and supply this to the national grid.
Half Hourly (HH) Export Meter: An export meter that records the exported units of electricity produced by a generator during every half hour of the day in kWh. HH export meters are required for all generators over 30kW installed capacity, and in some circumstances below 30kW installed capacity.
Import: This relates to the electricity drawn from the national grid (via your local electricity distribution network) which is used at your property. It is; and measured through an import meter.
Installed capacity: this is the maximum power that can be generated if the generator is working at its full potential, also known as its maximum power rating. It is normally measured in kW or MW. An average solar PV site is about 1 kW and Good Energy’s Delabole wind farm, which supplies 2,500 of our customers is 4 MW (4,000 kW).
Levy Exemption Certificate (LEC): A LEC proves how the electricity was generated and who generated it, thus ensuring that the power comes from a renewable source. LECs are rewarded by Ofgem with every 1 MWh of power exported from a renewable source.
Local Distribution Company: The owner of your local electricity distribution network, including the wires and the meters that connect your property to the national grid.
Long Stop Date: Means the date before which ROCs, LECs and REGOs from the previous year of generation must be transferred to Good Energy in order for the generator to be paid for those ROCs, LECs and REGOs.
Minimum Export Threshold: As Smart Generators must pay an annual export metering and administration charge, it is strongly recommended by Good Energy that potential generators will generate more than the minimum export threshold so that a profit will be made over the course of a tariff period.
For generators less than 30kW installed capacity this minimum is approximately 5MWh/yr, for generators above 30kW it is approximately 30MWh/yr. Please note that these minimums can change due to future market prices.
Minimum ROC Transfer: Represents the minimum number of ROCs that can be transferred to Good Energy in order for Good Energy to pay for the transferred ROCs. This number will be specified in our pricing offer to you. Good Energy imposes a minimum ROC transfer threshold in order to keep our administration costs to a minimum and so that we can pass on the maximum benefit to you.
Non Half Hourly (NHH) Export Meter: A Non Half Hourly (NHH) Export Meter records the cumulative export from a generator in kWh. NHH export meters are effectively the opposite of a normal household electricity meter.
Ofgem: Office of Gas and Electricity Markets -, the industry regulator. www.ofgem.gov.uk
Ofgem-accredited Total Generation Meter: A Total Generation Meter that has been accredited by Ofgem to receive payment for all renewable benefits, including ROCs.
On site Demand: On site demand is electricity used by any building, normally expressed in kWh or MWh. A normal domestic property would use circa 3.3MWh per year.
Renewable Accreditation: Good Energy requires all its Smart Generators to be accredited with Ofgem for Renewable Obligation Certificates (ROCs), Levy Exemption Certificates (LECs) and Renewable Energy Guarantee of Origin’s (REGOs). Before you join the Smart Generation scheme you should have already started the accreditation process. Good Energy does not currently offer advice to customers looking to become accredited for ROCs, LECs and REGOs. Accreditation documents and further information can be downloaded from www.ofgem.gov.uk under the tabs “Sustainability”, “Environment” and then “Renewables Obligation”.
Renewable generator: Electricity generation technologies that use renewable resources, such as wind, wave, solar, biomass and small-scale hydro power to generate electricity.
Renewable Energy Guarantees of Origin (REGOs): Awarded by Ofgem with every 1 MWh of power generated from a renewable source. Good Energy uses REGOs to prove that the electricity we supply is 100% renewable. REGO’s currently have no market value.
Renewable Obligation Certificates (ROCs): Awarded by Ofgem with every 1 MWh of power generated from a renewable source. This value varies each year with normal market forces, just like any other tradable commodity.
ROC & REGO register: Ofgem issues ROCs and REGOs to internet-based registers. Each renewable generator can be issued with a ROC and REGO register unless they nominate a supply company, like Good Energy, to be issued the ROCs and REGOs on their behalf.
Supply number: For each import and export meter registered in the settlement process a unique supply number is issued. Each registered supply number, or meter, incurs a maintenance and operational charge. The supply number is also known as a Meter Point Administration Number (MPAN).
Total Generation: The total amount of renewable electricity generated by a renewable generator, normally expressed in kWh or MWh.
Total Generation Meter: This meter is installed at the inverter (which converts the generators electrical output from DC to AC), to record the total electricity generated by your renewable generator. The meter make and model is normally found on the total generation meter, and the meter serial number is often represented as a barcode under the total generation meter,and is a unique number.
