FIT REGO Boost: Improving value for small generators
Our generator customers need to get fair value and be recognised as renewable, which means they must be certified for REGOs and be paid for them. Good Energy’s FIT REGO Boost service does that for our FIT customers.
In this article, we explain what FIT REGO Boost is, and why it’s important for small-scale generators.
Small-scale renewable generators are undervalued, despite the vitally important role they have in our energy system today and the future.
Like all kinds of renewable power, they reduce the UK’s reliance on fossil power generation, lowering emissions and our exposure to volatile gas prices.
They also reduce the amount of energy which needs to be transported long distances over an electricity grid which will be placed under increased pressure as more of the UK’s economy turns to electricity for their energy supply.
However, because this group do not claim REGOs, the electricity they generate does not count towards the UK’s renewable electricity percentage in its official fuel mix.
What are REGOs?
REGOs are are digital certificates which are awarded to renewable generators for each megawatt of clean power they generate.
Electricity suppliers buy REGOs from larger-scale generators to verify that the power they supply to customers is renewable. The value of REGOs has risen over the past few years due to legislative changes and increased demand for renewables. So in addition to their electricity not being recognised as renewable, small generators are missing out on revenue support enjoyed by larger generators.
Good Energy matches the clean power our generator customers share with the electricity our supply customers use.
Thanks to innovations like smart metered export, it’s possible to source an increasing amount of this power from the very smallest generators – such as homes and small businesses with solar panels on their roofs.
However, many of these generators are not ‘accredited’ to receive REGOs for the power they generate. The process of applying for and managing REGOs is lengthy and can be complex for the many people who do not have the time or knowledge to navigate it. As a result, their clean power is not recognised as renewable. This reduces incentives for suppliers to buy electricity from small scale generators because they cannot call it green; which in turn reduces the incentive for homes and businesses to invest in renewable generation which could lower their bills and carbon emissions.
FIT REGO Boost improves value for small scale generators
It has always been part of Good Energy’s core purpose to support the growth of small-scale renewables. It is for this reason that we are setting out to help them become accredited to receive REGOs.
We have worked with Ofgem, the energy regulator, to tailor a solution which will help generators quickly and easily become accredited for REGOs. In addition to paying generators for their clean power, we will also pay them for their REGOs. We will then use those REGOs to confirm to Ofgem that the electricity we have purchased and supplied to our customers is renewable.
This new service is called FIT REGO Boost, and it will open up very soon to our Feed in Tariff customers.
Some other suppliers choose to buy all their REGOs separately, while having no contracts in place to purchase clean power directly. This means that they can claim to have supplied 100% renewable electricity without having purchased any at all. This is what is referred to as greenwashing. Good Energy has long been critical of the current system and has consistently advocated for reform.
Change is needed to bring greater transparency and innovation to the market, ensuring that consumers know that their supplier is genuinely working to decarbonise electricity use. A small part of this is ensuring that all renewable generators can access the support to which they are entitled, no matter their size.
This is what our FIT REGO Boost service helps deliver.
