Selling vs. Net Metering in Ireland: Maximising Your Solar PV Benefits

Understanding the difference between selling your excess solar energy back to the grid and net metering is crucial for maximising the benefits of your solar PV system in Ireland. Both options offer financial and environmental advantages, but they operate differently.

Here’s a guide to help you navigate these options

How to Sell Electricity Back to the Grid:

• Clean Export Guarantee (CEG):
  

Homes with PV systems that generate more energy than they consume can export that excess to the grid and benefit from payments for that exported electricity. This payment is known as the Clean Export Guarantee (CEG), which is essentially a feed-in tariff. The tariff is paid at a 'competitive market rate' set by your electricity supplier. Each supplier sets their own rates, so contact your electricity supplier directly for details of their CEG rates. The CEG is available to both new and existing micro-generators, subject to eligibility criteria.

• Eligibility and Requirements:

To avail of the CEG, you need to have a suitable ESB Networks export grid connection. You will also need to have a smart meter installed to get paid precisely for what is exported. While you do not need a smart meter to avail of the SEAI grant, you may need one to avail of the CEG.

• Applying for CEG:

  • Contact your electricity supplier for information on the Clean Export Guarantee.

  • For grid connections, contact ESB Networks.

  • For grants and additional support, contact the Sustainable Energy Authority of Ireland (SEAI).

  • Read more: SEAI Homeowners' Guide to Solar PV

Benefits of Selling Electricity Back to the Grid:

• Financial Savings: By exporting excess electricity, you can reduce your energy bills. The payments you receive can offset your consumption costs, making your investment in solar PV more profitable.

• Eco-Friendly: Contributing renewable energy to the grid helps reduce reliance on fossil fuels, promoting a greener environment.

• Earn Income: You can earn money for the electricity you generate. The more solar panels you have, the greater your potential earnings.

• Grid Stability: Distributed generation, like solar panels, enhances grid stability by reducing strain during peak demand periods.

• Government Incentives: The Irish government offers incentives, tax credits, or grants for microgeneration systems, providing additional financial benefits.

Net Metering

How Net Metering Works:

Net metering allows you to receive credit for any excess electricity your solar panels generate. Here’s how it works:

• Generation: When your solar panels produce more electricity than you need, the surplus energy flows back into the grid.

• Bi-Directional Meter: A special meter (called a bi-directional meter) tracks both the electricity you consume from the grid and the excess electricity you supply to it.

• Credit Accumulation: The excess energy you provide is credited to your account. This credit can offset future electricity bills.

• Usage and Credits: When you use electricity at night or during cloudy days, you draw from the grid. If your consumption exceeds your generation, you pay for the difference. If your generation exceeds your consumption, you use the accumulated credits.

• Settlement: Typically, at the end of each billing cycle (e.g., monthly), your account is settled. If you have a surplus of credits, they carry over to the next billing period.

Benefits of Net Metering:

• Energy Independence: Net metering allows you to balance your energy use by storing excess generation as credits, making your home more energy-independent.

• Cost Savings: You can significantly reduce your electricity bills by offsetting your consumption with the credits you accumulate from excess generation.

• Environmental Impact: By feeding excess renewable energy into the grid, you contribute to reducing overall carbon emissions and supporting the transition to a greener energy system.

Comparing Selling and Net Metering:

When you sell excess energy back to the grid under the CEG, you receive direct payments from your utility company, providing an immediate financial return. In contrast, net metering credits your account for future use, offering a way to offset future consumption costs. Both options have financial benefits, but they cater to different needs and circumstances.

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