Renewable energy enjoying its moment in the sun

Renewable energy sources are growing quicker than first anticipated and could expand by 50% in the next five years, powered by an increase in solar energy.

A study carried out by the International Energy Agency (IEA) showed that solar, wind and hydropower projects are increasing at the quickest rate in four years. The report also suggests by 2024 solar capacity could expand to 600GW, while overall renewable electricity is expected to grow by 1,200 GW in the next 5years.

At this current time, solar and wind are undergoing huge transformations. Renewable sources currently make up 26% of the world’s electricity today but, according to the IEA, it’s expected to reach 30% by 2024. The recovery comes after a global slowdown last year, due to falling technology costs and rising environmental concerns.

IEA’s executive director, Fatih Birol, has since warned the percentage of renewables in the global energy system needs to increase quicker in order to meet net-zero targets. It is expected that solar will play the biggest part in the growth of global renewable energy, with the expected cost of solar power to further decline by 15%-35% by 2024.

As well as businesses, the number of home solar panels is due to increase to around 100 million rooftops by 2024. Even with this growth, solar will only cover 6% of the world’s available rooftops, leaving scope for further growth.

Smart Export Guarantee – What is it?

Following the closure of the Feed in Tariff (FiT) to new applicants in March 2019, the need for payment for electricity exported to the grid by small-scale renewables was recognised. Thus, BEIS introduced the Smart Export Guarantee (SEG).

The Smart Export Guarantee is a mechanism designed to ensure people/businesses who generate renewable energy and export to the grid are paid fairly. It applies to any of the following renewable energy technologies;

  • Solar PV panels, onshore wind, anaerobic digestion, hydro – up to 5MW
  • Micro Combined heat and power – with an electrical capacity of up to 50kW

The Smart Export Guarantee will come into force from 1st January 2020. Anybody who already receives FiT on installations will be unaffected by SEG.

How much will you receive?

Nothing is set in stone, however, we predict that initial SEG tariffs to be straightforward, most likely offering a fixed pence per kWh export rate.

The only requirement for SEGs is that the tariff must always be greater than zero, effectively meaning it is up to energy suppliers to decide what to offer their customers. Tariffs will differ between suppliers and some may choose to offer multiple choices.

How can we help?

Energy Management has expert industry knowledge which allows us to guide you through the whole renewable energy installation process. We arrange and manage the installation of the infrastructure right the way through to the procurement of Power Purchase Agreements (PPAs) and SEGs.

For more information give a member of the team a call on 01225 867722, or alternatively email sales@energymanagementltd.com.