Octopus gives free electricity for motoring; is it too good to be true?

Posted by Ross Lammas

Octopus Energy has announced an all-in-one electric car leasing package that includes the electricity required to run the car. For £299 per month, you receive a BYD Dolphin hatchback, a bi-directional Zaptec Pro charger, and access to a smart tariff that includes free home charging. This innovative technology, known as Vehicle-to-Grid (V2G), enables electric vehicles (EVs) to charge during off-peak hours and supply energy back to the grid when demand is high, potentially saving drivers up to £620 per year if they drive 7,500 miles annually.

How can Octopus Energy give you free electricity to drive?

Renewable energy sources, such as solar and wind, experience fluctuations in production due to their dependence on weather conditions like wind and sunlight. In contrast, hydroelectric power is less affected by these variations, except during droughts. These fluctuations result in “peaks” and “troughs” in renewable energy generation. Similarly, there are “peaks” and “troughs” in electricity demand on the grid. For example, when we return home from work, we tend to cook and may charge our electric vehicles, leading to higher demand. At night, however, demand decreases, resulting in cheaper electricity prices. Octopus is working on creating a large-scale energy storage system using electric vehicles to help even out these fluctuations.

Excess renewable energy generation

Excess generation occurs when conditions are optimal for energy production. For solar panels, peaks are typically during sunny days when sunlight is abundant, especially around midday. For wind turbines, peaks occur when wind conditions are strong and consistent, typically during specific seasons or periods of consistent weather.

And there are the energy troughs.

In contrast, troughs occur when energy production is low. For solar power, this happens during cloudy days, at night, or in the winter months when daylight hours are shorter. For wind energy, troughs can occur during calm weather when there is little to no wind. A mixture of both, and we’re back to fossil fuels or nuclear, or could electric vehicle batteries help plug the gaps?

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These fluctuations present challenges for energy grid management, as the supply of renewable energy may not always match demand. To address this issue, solutions such as energy storage systems, demand response programs, and smart grid technologies are being implemented. These innovations help balance supply and demand, allowing us to maximise the use of renewable energy even when production is low.

Currently, generators get paid to turn off renewable energy.

Wind generation often shuts down during periods of excess electricity generation for several key reasons, including grid stability. Electrical grids must maintain a balance between supply and demand. When there is an overproduction of electricity, it can lead to instability in the grid. Excess electricity can strain the system, causing fluctuations that could damage infrastructure or lead to power outages.

Occasionally, during peak generation periods (especially from renewable sources like wind and solar), prices in wholesale electricity markets can drop to zero or even become negative. When Negative Pricing occurs, there’s more electricity generated than is required. In such cases, utilities may pay wind farms to reduce production to avoid the costs associated with excess generation.

Renewable energy operators typically have agreements that allow them to shut down when energy demand exceeds supply and receive compensation to help cover operational costs, even if they’re not generating power. Unlike fossil fuel plants, many renewable energy sources lack effective storage solutions. Thus, turning off generation becomes a necessary action to control grid instability.

So what’s in it for Octopus Energy?

Ocoypos is an energy retailer that purchases electricity from the generators. It’s also a software company supplying services to the energy sector. They don’t own any nuclear plants, like EDF, or Gas turbines, like Centrica (British Gas). They are buying energy from the market, then selling it to us. I expect they would like to generate more of their energy; however, getting this new generation on stream is a little challenging.

Is this a game-changer for Octopus Energy?

Suddenly, Octopus may metamorphose from an energy retailer to a significant energy storage supplier. Raising profits for storing excess electrons in their mass fleet on BYD electric car batteries when energy is cheap, then feeding it back during high demand at a handsome return? It is a better solution than turning off renewable generation. And a more efficient use of clean energy

Best of all, they attract customers to finance their energy storage business model by offering free motoring electricity to those who participate in the scheme. That’s smart!

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Making your home more energy-efficient — Green finance options

Posted by Ross Lammas

You might have heard about “green mortgages” and “property-linked energy efficiency finance.” Don’t worry; it’s not as complicated as it sounds!

Green mortgages are like regular mortgages, but they have extra benefits for making your home more eco-friendly. They can make it easier and sometimes more affordable for you to upgrade your home’s energy efficiency. Big banks and building societies like Barclays, Nationwide, NatWest, and Virgin Money offer these special mortgages, giving you plenty of options.

When you choose a green mortgage, you’re not just saving money

You’re also helping the environment. These mortgages are often connected to making your home more energy-efficient. Think of it as a win-win situation! You can enjoy lower fees, better interest rates, and even cashback on larger loans whilst reducing your energy bill and making your home more valuable at the same time.

To determine which upgrades will save you the most energy and money, you can get an Energy Performance Certificate (EPC). It helps you identify ways to make your home more energy-efficient.

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Did you know that many people now see the importance of energy efficiency? Research by the Green Finance Institute found that 83% of people think it’s crucial. They want to reduce their energy bills and help the environment.

With rising energy costs and international events like COP26, hosted by the UK in 2021, almost everyone thinks about energy efficiency. Nearly 90% of homeowners consider it necessary, a significant change from just a year ago.

But here’s the catch: most homeowners find it hard to pay their energy bills, which is why energy efficiency is so important. In the past, only about 25% of people considered using green mortgages to make their homes more energy-efficient. But now, with rising interest rates and prices, more people are looking for ways to save on energy bills.

The Green Finance Institute thinks investing in energy efficiency is a great idea.

They say it’s a way to make our homes better for the environment and more affordable for us. But here’s the challenge: making UK homes energy-efficient could cost around £250 billion by 2050. That’s a lot of money! We need help from the government, private companies and individuals to make it happen.

Remember the “UK Green Deal”? It was supposed to help people make their homes more energy-efficient without paying everything upfront. But it didn’t work out so well. Why? Well, it had some issues in its design and complexity, and it failed to reach enough people. The marketing and promotion were ineffective. It was hardly surprising when those responsible for promoting the scheme were the same energy companies profiting from selling energy!

But don’t worry, there’s hope! The UK government is considering a new way to help homeowners make their homes more energy-efficient. It’s called “Property-Linked Finance for Home Energy Efficiency,” it’s all about reducing emissions, reaching environmental goals, and getting lots of private investment.

So, what is this “Property-Linked Finance” thing? It’s yet to be available in the UK, but it’s a big deal in the US and worldwide. Basically, it’s a way to get money for energy efficiency improvements that stay with your home even if you sell it.

This new approach inspired by the “Property Assessed Clean Energy” (PACE) program in the United States has many benefits, like making it easier to pay for energy upgrades, increasing the value of your property, and even making your home more attractive to buyers.

One of the best things about Property-Linked Finance is that you don’t have to worry about paying it all back right away. It sticks with your property so that you can enjoy energy savings right from the start.

And it’s not just about saving money; it’s also about making your home more comfortable and healthier. It can help with issues like dampness, mould, and cold, which many people struggle with. Plus, it could reduce healthcare costs too!

More positives – Property-linked Finance should create jobs and boost the economy

It’s a win-win for everyone. Plus, it helps the environment by reducing carbon emissions and supports the UK’s net-zero emissions goal.

Even financial institutions are interested because it offers new investment opportunities and reduces risks. It’s a win for them too!

We need help from the government, financial institutions, and the retrofit industry to make this happen. If we work together, we can make our homes more energy-efficient and do our part for the planet.

For more information, you can visit the Green Finance Institute. They have all the details about how to make your home more energy-efficient and simultaneously help the environment!

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Energy Efficiency and EPCs — A Guide for Homeowners, Renters and Landlords

Posted by Ross Lammas

Understanding UK Energy Performance Certificates (EPCs)

Anyone who has bought, sold or rented a house in the last few years will be familiar with Energy Performance Certificates (EPCs). Featured as a coloured graphic at the bottom of the Estate Agents’ particulars, these charts suddenly became more important as energy prices soared. Below, we describe what EPCs are, how they are calculated, their historical background, their advice to homeowners, and their legal requirements.

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The UK implemented Energy Performance Certificates (EPC) in 2007. To help homeowners, tenants, and businesses make informed decisions about energy usage and understand a building’s energy efficiency.

EPCs offer vital knowledge about a property’s energy efficiency, provide recommendations for occupiers/owners to reduce energy consumption, and give potential buyers/renters an idea of the home’s running costs. That quaint crumbling cottage might not be so attractive if keeping warm is expensive.

What are Energy Performance Certificates (EPCs)?

Energy Performance Certificates (EPC) are official documents that assess and rate the energy efficiency of a building. These certificates provide information about the energy consumption and carbon emissions associated with the property and recommendations for improving its energy efficiency. EPCs are legally required in the UK when a property is built, sold, or rented — in 2018, Minimum Energy Efficiency Standards (MEES) were introduced for rental properties.

The primary purpose of an EPC is to provide potential buyers or tenants with an insight into the energy efficiency of a property, allowing them to make knowledgeable decisions regarding their energy usage and related costs. Additionally, EPCs help identify areas where improvements can be made to enhance a property’s energy efficiency, benefiting both the environment and the occupants.

EPC Calculation and Rating Methodology

The calculation and rating methodology used in EPCs is based on various factors related to a building’s construction, insulation, heating systems, and energy consumption. Trained assessors, who may be independent or appointed by accredited organisations, carry out assessments to generate EPCs. The assessments involve examining different aspects of the property, such as its size, construction materials, heating systems, insulation levels, and ventilation.

The EPC rating is presented on a scale ranging from A (most efficient) to G (least efficient). Similar to appliance labelling. The rating is determined by calculating the total energy usage per square meter of the property and comparing it to a benchmark figure for comparable buildings. Allowing for a standardised and fair comparison between different properties, regardless of size or type.

The EPC also includes a numerical indicator called the Energy Efficiency Rating, which ranges from 1 to 100. A higher score signifies greater energy efficiency. The EPC report provides a breakdown of the property’s current energy efficiency, potential for improvement, and estimated energy costs.

Historical Backdrop

Energy Performance Certificates were introduced in the UK in 2007 due to the European Union’s Energy Performance of Buildings Directive, which aimed to improve energy efficiency and reduce carbon emissions in buildings across Europe. The UK government implemented the directive through the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007.

Since their introduction, EPCs have become an integral part of the property market in the UK. They serve as a tool to increase understanding about energy consumption, promote energy efficiency, and help achieve national and international environmental goals.

Advice for Homeowners to Reduce Energy Usage

One of the critical benefits of EPCs is the advice they provide to homeowners on reducing energy consumption and improving their properties energy efficiency. This guidance is handy for those looking to lower their energy bills, minimise their environmental impact, and create a more comfortable living space. The recommendations offered in EPC reports are tailored to each specific property, considering its unique characteristics and current energy performance.

EPCs guidance typically covers a range of areas, including:

Insulation Improvements — the fabric of the building

EPCs often recommend insulation improvements to enhance a property’s energy efficiency. This may involve adding or upgrading insulation in walls, roofs, and floors to reduce heat loss and retain warmth within the building. Proper insulation can significantly reduce the need for excessive heating, resulting in energy savings and increased comfort.

Heating Systems — controls and upgrades

Efficient heating systems play a vital role in reducing energy consumption. EPCs offer advice on upgrading or optimising heating systems, including installing energy-efficient boilers, smart thermostats, and programmable controls. These measures help regulate temperature and reduce energy wastage, lowering energy bills.

The EPC rating considers the cost of heating and powering the dwelling, favouring gas heating due to historically lower gas prices. As a result, EPCs commonly suggest new gas boilers over low-carbon heat pumps. However, recent increases in energy prices have narrowed the gap between gas and electricity prices, making heat pump running costs comparable to gas boilers for many homes. Despite this, the EPC rating system has not yet reflected this change. The government has an action plan to improve EPC calculations, but until then, replacing a gas boiler with a heat pump may reduce the EPC score.

Lighting and Appliances — low-cost, simple recommendations

The choice of lighting and household appliances can considerably impact energy usage. EPCs often recommend switching to energy-efficient lighting solutions, such as LED bulbs, which consume significantly less electricity while providing the same brightness level.

Currently, EPCs do not include appliances as they are not part of the fabric of the building. Even though replacing old and inefficient appliances with energy-saving models will result in substantial energy and cost savings over time.

Renewable Energy Sources — long-term investments

EPC reports may suggest installing renewable energy technologies, such as solar PV panels and wind turbines, to generate clean energy on-site. These renewable sources can supplement or replace traditional energy sources, reducing reliance on fossil fuels and lowering carbon emissions and energy bills.

Legal Requirements for Sellers and Landlords

EPCs have been a legal requirement in the UK since 2008 for all domestic and non-domestic properties, whether new or existing, that are sold, rented, or newly constructed. The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007, later amended in 2012 and 2013, outline the specific legal obligations related to EPCs.

The law requires property owners, including homeowners and landlords, to obtain an EPC before marketing a property for sale or rent. The certificate must be made available to potential buyers or tenants, allowing them to assess the property’s energy performance and associated costs. Failure to comply with these legal conditions can result in penalties and financial consequences.

Minimum Energy Efficiency Standards (MEES) Requirements for Rental Properties

Since 2018, the Minimum Energy Efficiency Standards (MEES) have been in effect in England and Wales, requiring rental properties to have an Energy Performance Certificate (EPC) rating of A to E for legal renting. MEES was introduced in 2015 and made it illegal for landlords to rent properties with an EPC rating below E, meaning poorly insulated F or G-rated homes couldn’t be offered for rent until their rating improved.

The government plans to strengthen MEES further by 2025, only allowing new rental homes with the highest ratings of A, B, or C. Many landlords are unaware of potential rule changes.

EPCs last for ten years, but if legislative changes are implemented, landlords may need a valid EPC at all times, even with the same tenants.

Landlords can be fined for not having a valid EPC, with proposals to raise the fine to £30,000 by 2025. To prepare for potential changes, landlords should check their property’s current EPC and consider improvements to boost the rating, such as insulation, double-glazed windows, or a new boiler.

In Scotland, all privately rented homes must have an EPC rating between A and E since March 2022, with new tenancies requiring a rating of D or above since April 2022. All rented homes must be rated D or above by 31 March 2025. In Northern Ireland, EPCs are mandatory for property sales or rentals, but no specific minimum standard is required.

The UK government offers financial assistance for energy-efficient improvements, and landlords should check if their local council provides any incentives for such modifications.

Commitment to Reducing Carbon Emissions

The introduction of EPCs as a legal requirement reflects the UK government’s commitment to reducing carbon emissions, promoting energy efficiency, and raising awareness about the environmental impact of buildings. It empowers individuals to make informed decisions regarding energy consumption and encourages property owners to invest in energy-saving measures.

EPCs Offer Practical Advice to Homeowners, Landlords and Commercial Tenants.

Energy Performance Certificates (EPCs) serve as essential tools in the UK to assess and rate the energy efficiency of buildings. They provide valuable information about energy consumption, carbon emissions, and potential cost savings. EPCs also offer practical advice to occupiers and owners, helping them make informed decisions on energy-saving measures. With the legal requirement to have an EPC when selling a property, the UK government ensures that energy efficiency remains a priority, promoting sustainability and supporting the transition towards a greener future.

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Home solar panels and battery energy storage explained

Posted by Ross Lammas

Solar panels have become an increasingly popular choice for homeowners in the UK, and for a good reason. Installing solar panels can help reduce household bills, generate electricity for your home, and even earn you money through the Smart Export Guarantee (SEG). In this blog post, we’ll explore the benefits of solar panels for micro-home generation and energy storage and how they can help you save money, outline the space requirements, and planning permission conditions. Going green is no longer just a buzzword; it’s a lifestyle many of us embrace to make our homes more eco-friendly.

What are Solar Panels, and How do they Work?

Solar panels (PV) are devices that convert sunlight into electricity — consisting of photovoltaic cells that absorb light and convert it into electrical energy. The electricity generated by solar panels is DC (direct current), which is then converted to AC (alternating current) using an inverter. AC electricity is what we use in our homes to power our appliances, charge batteries for use at night, or send any surplus energy back to the grid.

Space Requirements for Solar Panels

The amount of space needed for solar panels depends on the size of the system and the amount of electricity you want to generate. For example, a 4kW solar panel system requires around 25 to 30 square metres of roof space. However, it’s worth noting that solar panels don’t have to be installed on a roof. They can also be placed on the ground or a wall using a solar panel bracket. South-facing areas are best, and any shading from buildings or trees should be minimised.

Planning Permission Requirements

In most cases, you won’t need planning permission to install solar panels on your property. However, you must apply for planning permission if your property is a Listed Building or in a Conservation Area. It’s also worth checking with your local council to see if there are any other requirements or restrictions.

Benefits of Solar Panels for Micro Home Generation and Energy Storage

One of the main benefits of installing solar panels for micro-home generation and energy storage is that they can significantly reduce your energy bills. In addition, by generating your own electricity, you’ll be less reliant on the National Grid, so you’ll have to buy less electricity from energy suppliers. If you are an electric car owner charging on a sunny day, you’re effectively storing energy for free motoring!

Earn Money with the Smart Export Guarantee

The Smart Export Guarantee (SEG) is a government-backed scheme that allows you to earn money by exporting excess electricity back to the National Grid. Under the scheme, energy suppliers must offer a minimum tariff for each kilowatt-hour of electricity exported back to the grid.

Energy Storage for 24/7 Power

Connecting your solar panels to a battery storage system allows you to store excess electricity generated during the day for use at night. This means you’ll be able to power your home with solar energy 24/7, reducing your reliance on the National Grid even further.

Life Expectancy of Solar Panels and Batteries

The life expectancy of solar panels and batteries depends on various factors, such as the quality of the equipment, the amount of sunlight received, and how well they are maintained. On average, solar panels have a lifespan of around 25 years, while batteries have a lifespan of approximately 10-15 years. Unfortunately, from experience, inverters do not last as long as PV panels. However, there are insurance-backed guarantees available from many installers. Therefore, choosing an established energy provider installation should offer extra peace of mind and provide a gateway into selling surplus energy back to the grid.

Vehicle-to-Grid (V2G) Technology

Vehicle-to-Grid (V2G) technology is an alternative to home battery storage that allows you to use the battery in your electric vehicle to power your home. This means you can use the excess energy generated by your solar panels to charge your electric vehicle during the day and then use the battery in your vehicle to power your home at night. V2G technology is still in its early stages but could potentially revolutionise how we generate and use electricity.

UK Energy Providers that Offer PV Installation Services

Several energy providers in the UK offer PV installation services, including Octopus, Good Energy, Ovo, British Gas, E.ON, and SSE. These companies can provide a complete solar panel system, including installation, maintenance, and monitoring. It’s worth comparing prices and services from different providers to find the best deal.

Increasing issues with energy security, climate change, and rising prices make home energy generation a viable option for homeowners. Especially if you are an electric car owner or considering switching from fossil fuel-powered vehicles.

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Vehicle-to-Grid (V2G) Technology: A New Way to Power Your Home and the Grid

Posted by Ross Lammas

Vehicle-to-grid (V2G) technology is a two-way power flow system that allows electric vehicles (EVs) to store and discharge electricity back to the grid. This technology can potentially deliver several benefits, including improving grid reliability, reducing peak demand, and providing backup power during outages.

Many different V2G models are available, each with advantages and disadvantages. Some of the most common V2G models include:

* V2H: This model allows EVs to store off-peak, therefore cheaper electricity from the grid and discharge it back to the home during peak demand hours. Thus, reducing the amount of electricity that needs to be purchased from the grid, saving money on energy bills.

* V2G: Lets EVs to store electricity from the grid and discharge it back to the grid during high-demand periods — stabilizing the grid and reducing the need for expensive backup power generation plants.

* V2B: This could use EVs to store electricity from the grid and discharge it back to a building like an office or school, reducing the facility’s reliance on the grid, saving money on power bills and reducing carbon emissions, especially if the energy generated comes from a surplus renewable origin.

Vehicle-to-Grid — the Future for Electric Vehicles?

The benefits of V2G technology are considerable. V2G can help to improve grid reliability by providing a source of backup power during outages. It can also help reduce peak demand, saving money on energy costs and reducing carbon emissions. Additionally, V2G can provide a new source of revenue for EV owners, who can sell their excess electricity back to the grid.

Nevertheless, there are also some challenges associated with V2G technology. One challenge is that V2G requires bidirectional charging infrastructure, which is not yet widely available. Another challenge is that V2G can impact the range of EVs, as the battery will be used to store and discharge electricity. Additionally, V2G can be complex to manage, requiring coordination between the EV, the grid, and the utility company.

Despite the challenges, V2G technology has the potential to play a significant role in the future of the energy grid. V2G can help to improve grid reliability, reduce peak demand, and provide a new source of revenue for EV owners. As V2G technology develops, it will likely become more widely adopted.

Here are some of the models of EVs that are currently available with V2G capability:

Nissan Leaf: The Nissan Leaf is one of the most popular EVs on the market and one of the few available with V2G capability. The Leaf can store up to 30 kWh of electricity and discharge that electricity back to the grid at a rate of up to 3.3 kW.
Hyundai Ioniq 5: The Hyundai Ioniq 5 is a new electric SUV that is also available with V2G capability. The Ioniq 5 can store up to 77.4 kWh of electricity and discharge that electricity back to the grid at a rate of up to 11 kW.
Kia EV6: The Kia EV6 is a new electric SUV that is also available with V2G capability. The EV6 can store up to 77.4 kWh of electricity and discharge that electricity back to the grid at a rate of up to 11 kW.
Ford F-150 Lightning: (US Market) The Ford F-150 Lightning is a new electric pickup truck that is also available with V2G capability. The Lightning can store up to 131 kWh of electricity and discharge that electricity back to the grid at a rate of up to 9.6 kW.

As V2G technology develops at pace, more and more EV models will likely be available with this capability. As a result, V2G can potentially provide several benefits for EV owners and the grid, and it is a technology worth watching.

UK innovative charging EV platforms with V2G & V2H capabilities.

UK energy suppliers are beginning to offer special tariffs for electric vehicle owners, from off-peak charging rates to dynamic pricing models which charge your vehicle when prices are low. The leading players are Octopus and OVO Energy. The key to this technology will be installing a bidirectional charging point in your home, which communicates with the relevant intelligent charging software platforms. These platforms will offer cheaper charging rates and allow you to return energy to the grid. Hopefully, at a profit!

These technologies offer opportunities to optimize the charging patterns of EV batteries, which should ultimately lead to longer battery life, alongside building a more balanced and efficient energy system where less energy goes to waste.

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