If you’re a homeowner benefiting from the Feed-In Tariff (FIT) scheme, you’re likely aware of the annual payments you receive for the electricity your solar panels generate. However, many homeowners also wonder if adding battery storage could affect their FIT payments. The good news? It doesn’t have to! Here’s everything you need to know about combining solar batteries with your existing FIT system.
Can I Add Battery Storage and Keep My FIT Payments?
The short answer is yes, you can add a battery storage system to your solar panels and continue to receive your FIT payments. However, it’s crucial to ensure that the integration is done correctly, or you could risk losing those payments.
Most people with a FIT system earn anywhere from 20p to 70p per kilowatt-hour (kWh) for the energy their solar panels generate. If you’re at the higher end of this range, you’ll want to avoid sacrificing those payments. Fortunately, there’s a straightforward way to make it work.
The Key to Keeping FIT Payments: AC Coupling
To make sure your battery storage doesn’t interfere with your FIT payments, the most reliable method is to use an AC-coupled battery system. Here’s how it works:
- Understanding Your Existing System
Your solar panels are connected to an inverter that converts the DC power from your panels into AC power. This inverter is likely linked to a generation meter, which tracks the energy produced and helps determine your FIT payments. - Introducing Battery Storage
To add battery storage, the energy generated by your solar panels should ideally pass through the generation meter first. The key is to store energy in your battery only after it’s been measured by the generation meter. This ensures that your FIT payments are calculated based on the energy your solar system produces, rather than what’s being used or stored. - The Role of the Smart Export Guarantee (SEG)
Once you’ve stored the energy in your battery, you can then use it as needed. If you export any excess energy back to the grid, the SEG scheme comes into play. This is a separate payment for the energy you send back to the grid, often through providers like Octopus or Flux. The SEG replaces the old “deemed export” model and pays you based on the actual energy you export.
By keeping the energy you generate separate from the energy you store, you maintain both your FIT and SEG benefits.
Hybrid Systems: The Bi-Directional Meter
Some energy suppliers offer the option of a hybrid system, which involves a bi-directional meter. This type of meter can track both the energy you import from the grid and the energy you export. With a hybrid system, you can still qualify for FIT payments while managing the energy you store and use.
However, keep in mind that the installation and approval process for hybrid systems can be more complex. Energy providers may ask for more documentation, and you’ll need to make sure all parts of the system are correctly configured to ensure continued FIT eligibility.
Adding a Tesla Powerwall 3 or Other DC-Coupled Battery
If you’re considering a Powerwall 3 from Tesla Energy or another DC-coupled battery system, it’s important to note that these systems can impact your FIT payments if not set up correctly. Directly connecting your solar panels to the Powerwall could cause your FIT payments to be affected because the energy would go through the battery before being counted by the generation meter.
However, the solution is simple: set up the Powerwall 3 in an AC-coupled configuration, ensuring that the energy passes through your generation meter first. This way, the energy produced by your solar system still counts toward your FIT payments, and you can enjoy the benefits of battery storage without losing out on your rewards.
Charging Your Battery with Off-Peak Energy
One of the big advantages of battery storage is that you can charge your battery with cheap off-peak energy; a great way to take advantage of lower rates while still benefiting from green energy. For example, you can use a tariff like Octopus Agile to charge your battery at night when electricity prices are lower, and your battery will be full of renewable energy by the time you need it.
Not only does this help you save money on your electricity bills, but you can also use this energy without sacrificing your FIT payments, as the energy stored in the battery still counts toward your generation and export payments.
What About Expanding Your System?
If your current solar system is underperforming, or if you want to generate more energy, you might wonder if upgrading your system could affect your FIT payments. Here’s what you need to know:
- Replacing Components
If your solar panels, inverter, or generation meter are faulty, replacing them shouldn’t affect your FIT payments—provided you use an MCS-certified contractor and inform your energy provider. Often, you’ll need to fill out a couple of forms to ensure everything stays compliant. - Increasing System Size
If you want to increase the size of your solar array, you may still be able to maintain your FIT payments. Some energy providers allow for the system’s capacity to be increased, as long as at least one of the original components (solar panels, inverter, or generation meter) remains the same. However, you may not get full FIT payments for the additional energy generated, though you will benefit from any SEG payments for excess export.
The Final Word
Adding battery storage to your solar system doesn’t have to mean the end of your FIT payments. By choosing the right setup—whether it’s an AC-coupled system, a hybrid with bi-directional metering, or a compatible battery like the Powerwall 3—you can enjoy the best of both worlds: the financial rewards of your solar system and the security of battery backup.
Before making any changes, it’s always a good idea to consult with your energy provider and review their terms and conditions to avoid any surprises.
If you have any more questions or want personalized advice, don’t hesitate to get in touch with one of our engineers. We’re here to help you make the most of your solar energy system!