Householders As Energy Providers

Since the 1970s oil price shock, an enthusiastic minority of homeowners have powered their homes with energy derived from renewable sources. These enthusiasts have recently been joined by a growing number of householders hoping to use microgeneration to reduce fuel bills and perhaps sell surplus energy to grid operators. If energy prices stay at their present level, microgeneration will create an Internet of energy that eventually impacts on incumbent energy providers.

The growth of distributed generation will lead to the restructuring of the retail electricity market and the generation, transmission and distribution infrastructure. This will lead to power providers having to diversify their business to make up for revenues lost through household energy microgeneration.

Energy companies are already using microgeneration to open up new markets. One example is electrically powered ground based geothermal heating systems that replace oil central heating. Electricity companies are coming to regard geothermal technology as a tool to expand electricity sales.

Solar hot water technology, while offering no scope for reselling electricity, can be a cost effective way to reduce domestic heating bills. DIY solar hot water systems are cheap and simple but plumbing and installation drive up the cost of commercial systems.

Solar photovoltaic technology is expensive, but is simple to install, in hot climates it can generate surplus electricity and, in many countries, installation is supported by government grants.

Small-scale wind turbines are a cost effective way to produce electricity for household use. Even so vendors need to reduce the cost of turbines. DIY retail chains attempting to source wind turbines for resale have, to date, been unable to find a low cost device manufactured in sufficient volume.

Another CarbonFree report Farming Renewable Energy looked in detail at developments within the solar photovoltaic industry and considered how research being carried out today will impact on the feasibility of large-scale renewable energy projects. The report asked the basic question:- Will the solar photovoltaic industry scale? This is also important within the microgeneration market - as is the ability of a range of other renewable energy technologies; such as solar hot water, small-scale wind and geothermal technologies to achieve critical mass.

The microgeneration market could be worth over $1bn per annum within five years, but that is highly dependent on factors such as the number of housing starts that incorporate microgeneration technology and whether domestic renewable energy vendors achieve scale before energy prices ease.

Who should purchase this report:-

• Architects and building developers.
• Renewable energy technology vendors.
• Microgeneration technology vendors.
• Energy providers.
• Organisations active in the renewable energy market.
• Organisations with carbon reduction strategies.
• Investors.
• Energy strategists and policymakers.