Billions of pounds could be saved by homeowners around the UK thanks to new rules that would make it easier for them to generate their own power using solar panels and then sell it back to the National Grid.
According to Ofgem, these rules will come in over the next 12 months and if they prove successful between £17 billion and £40 billion could be saved by the year 2050, the BBC reports.
The first to gain from these forthcoming changes will be those who make use of solar panels and battery storage already. Currently, people are charged tariffs when electricity is imported into their homes or exported back to the grid, but it’s now been recognised that this must change because it’s a deterrent against using electricity in a more flexible way to benefit everyone.
Speaking to the news source recently, executive director of National Grid Nicola Shaw said: “We are at a moment of real change in the energy industry. From an historic perspective, we created energy in big generating organisations that sent power to houses and their businesses. Now we are producing energy in those places – mostly with solar power.”
Tougher price controls are also due to come in, with Ofgem saying that these will need to be more adaptable so that suppliers can meet customers’ needs more effectively. From 2021, new controls will put the sector in line with other utility regulators, with Ofgem continuing to push for further savings having already secured additional savings of more than £4.5 billion by reduced revenues or voluntary contributions from firms.
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