Octopus Energy have confirmed that Club members with solar on their roofs will be able to offer spare generation to their Energy Local Club. This is not compulsory; you can choose to keep your current arrangement.
How will it work?
When your smart meter is installed, you will have the option to set it up so that any of the electricity that your panels generate, but you don’t use yourself (your export) can be used by other members of the Club. Any electricity that is not used by either you or other Club members will go to Octopus for use by their other customers.
What will I receive?
If other members of the Club use your solar export when it is generated, you will receive the Club’s agreed Club Match Tariff (like with the hydro or other generators in the Club).
For any exported solar power that is not used by the Club when it is generating, you will receive 5.50p/kWh from Octopus for this power. This is Octopus’ standard Outgoing Tariff, which they pay for solar export. You can read more about the Octopus Outgoing Tariff here: https://octopus.energy/outgoing/
How do I sign up?
All you need to do is apply for the Octopus Outgoing tariff using this link: https://octopus.typeform.com/to/C6k9Qj.
Will I get more money?
It depends on your current arrangement.
If you do not currently measure how much power you export each half hour, you may have what is referred to as 'deemed export'. This means you receive an export payment for 50% of everything you generate (you are asked for a generation meter reading each quarter). You may use more or less than 50% in your home. If you are out in the middle of the day, you may currently be paid for less than you actually export. If you are in during the day, you may currently be paid for more than you export.
With a half hourly meter measuring your export, you only get paid for what you export. However, the Club Match Tariff will be higher than the tariff you receive at the moment for export.
You are likely to earn more unless you have a very small array and are at home during the middle of the day. However, we cannot guarantee this.
How much you earn compared to deemed export will depend on:
- How much you actually export.
- Whether other Club members are using their electricity at the time when you are producing electricity.
- The price difference between the Octopus Power Purchase Agreement (PPA) tariff price and the FIT export tariff.
- The Club Match Tariff, which will be greater than the Octopus Outgoing.
What about my FIT generation payments?
FIT payments to domestic generators are made up of two elements: the generation tariff paid on the total generated, and the FIT export tariff. Switching from a deemed export scheme to a Power Purchase Agreement for your export does not affect payment of the generation tariff on the total generated.
You don’t need to put your solar into the Energy Local Club. Below are other options.
Stay on deemed export
If you are already on deemed export and you choose to remain so, then this will mean you will always get the FIT export tariff rate (3.82 p/kWh (if your installation was installed before 31/07/2012 or 5.38 p/kWh if installed after) for 50% of what you generate, regardless of how much you use yourself and what the rest of the Club is doing. You won’t have the opportunity to benefit from higher prices paid under the Club Match Tariff, but you will be able to calculate your FIT income directly from the amount generated.
Have a non-Energy Local PPA
If you already measure your export, you can continue on your current arrangement or you could seek a normal PPA in the wider market. If you do this, you won’t benefit from the Club Match Tariff for your solar.
Note that with both staying on deemed export and having a non-Energy Local PPA your solar export will be managed entirely outside of Energy Local.
If this is not clear or you would like to have a chat with your advisor, please get in touch.
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