Octopus Energy is doubling the export rate of its Fixed Outgoing Octopus tariff, typically used by customers with solar panels, as the cost of energy is soon set to increase again. ‘A great initiative,’ said leading energy expert MakeMyHouseGreen, but argues there is a long way left to go.
Self-generating customers now earn three times more per kWh with Octopus than they would with any other UK energy supplier.
Llewellyn Kinch, co-founder of cleantech platform MakeMyHouseGreen, which uses smart data to calculate savings made by green technologies, and UK energy auto switching service Switchd, believes that higher export rates will encourage more customers to install bigger solar panel systems than are needed to cover their energy usage.
‘We applaud Octopus for doubling its export rates. We need to speed up the greening of the grid if the UK wants to have a chance at reaching its green targets in time, and we have found this to be the type of incentive households need for them to want to maximise their systems.’
But he continues to say that he wishes more had been done, and soon.
‘Had Octopus increased its tariff by the same rate that energy prices have risen for consumers over the last year, it would stand at 12p per kWh when the Energy Price Guarantee comes in, so in real terms, this is only a 3p increase.’
He continued, ‘However, that mis a great deal better than other suppliers such as British Gas, Shell or EDF who started at an extremely low base and haven't seen fit to increase it in line with energy price rises.’
Currently, the worst offender among major suppliers is British Gas at a meagre 3.2p, followed by Shell at 3.5p and EDF whose best tariff is 5.6p – rates which could actively discourage consumers from installing solar panels and helping to green the grid.
Llewellyn said, ‘Octopus certainly seems more committed to the green agenda than other energy suppliers. We hope more suppliers will follow its lead.’