As the UK transitions towards net zero, the way businesses use energy is changing. As we remove our dependency on fossil fuels across heating, transport, and energy use in buildings and industry, over time we will see more businesses adopt low-carbon technology to support with their decarbonisation efforts.

This includes on-site solar PV – a key technology in the net zero energy transition. However, the implementation of on-site solar will trigger a change in businesses’ overall electricity demand, as well as the characteristics of their consumption pattern, and businesses need to consider what this means for their electricity strategy.

For as long as the sun keeps shining, solar power produces zero emissions and is 100% renewable at the point of generation – making it an essential form of renewable energy generation.

However, when a business installs low-carbon technologies such as on-site solar, they will start to see changes in their electricity profile. For example, they may see a dip in their consumption from the grid in the middle of a sunny day, with on-site solar PV generating their electricity instead.

As well as on-site solar PV, other low-carbon technologies may also affect electricity profiles. For example, businesses might see their electricity consumption levels increase overall, after electrifying their heating system, and increased overnight consumption after electrifying their vehicles and charging their fleet of EVs, ready for the next day.

With the uptake of solar PV and other low-carbon technologies, a business might consume electricity at different quantities and times than previously forecasted. And as businesses across the country adopt this approach, we’ll see changes to the energy system at a national level.

As solar energy is at its peak between 12-3pm, the uptake of solar PV has meant that the UK has experienced more periods of high electricity generation in the middle of the day, causing usage patterns to change and prices to decrease within this period.

In fact, the UK is already seeing more frequent negative half-hourly electricity prices, which happens when the combination of high renewable generation and low electricity demand from the grid leads to periods where prices fall below zero, with users essentially being paid to consume electricity. The cause of these negative pricing periods can sometimes be challenging to understand or predict, with unknown amounts of solar being generated.

As well as this impact on a national level, on-site solar generation will also affect businesses and suppliers individually. If a business does not make their electricity supplier aware of any changes in their technology suite, this may result in their supplier having to sell back additional electricity during periods of underconsumption (such as when the business is using electricity from their solar PV) at potentially lower prices, and/or buying more electricity at periods of overconsumption, exposing suppliers and businesses to unpredictable market prices.

Although less electricity is taken from the grid through the use of solar PV panels, the unpredictability of solar generation means that your rates for your remaining electricity may be slightly higher, to reflect this risk to the supplier. Therefore, businesses have two choices. They can either pay to mitigate this risk, using a fixed contract, where available, in which their supplier takes on that market exposure of any differences between their forecasted electricity usage and what they actually consume, or they can proactively manage their electricity usage with a more flexible contract, and use their solar PV in tandem with other low-carbon technologies.

To get the most out of the electricity provided by your business’s on-site solar PV, it’s important that you don’t think about this technology in isolation. Using solar PV in tandem with other low-carbon technology to complement each other could help you use your electricity more efficiently, avoid more expensive peak periods, and save money.

Peak solar times do not always coincide with when you most need energy. Battery storage technologies can be used to store unused solar energy in times of high generation (such as in the middle of the day), which would otherwise go straight to the grid, to be instead used in times of typically high demand and peak prices (such as between 4pm-7pm, particularly on weekdays). This not only helps you make full use of your electricity when you need it, but could also help smooth out the impact of solar PV on the grid.

In the same manner, solar PV could also be coupled with electric vehicle (EV) chargers for your business’s fleets, as well as heat pumps. By powering these low-carbon technologies with solar PV, you can store your energy when not needed, and draw from it at times when both demand and prices are high, to avoid costly peak charges.

Communication is key in the transition to net zero. With an electricity supply contract, suppliers will typically assume that you will follow a traditional consumption pattern, using the same amount of electricity, in the same way as you have over the last 12 months, unless told otherwise. However, if your business is planning to make any changes, such as installing solar PV on-site, there’s going to be a difference between your forecasted electricity usage and actual consumption in the future.

So, it’s important to speak with your electricity supplier and let them know of your plans, so they can proactively build these changes into a contract that is best for you and helps reduce unexpected charges. Before quoting our customers, we ask them questions about their low-carbon technology, such as:

• The capacity of their technology at site/MPAN level.
• Any export capacity of their technology at site/MPAN level.
• The installation date of their technology at site/MPAN level.

By having a long-term view of your energy strategy, thinking about how technologies on-site could impact your organisation’s electricity demand profile, and proactively discussing this with your supplier, you’ll be able to make the most of your low-carbon technology and prepare for a net zero future.

If you’re looking to learn more about how to navigate the net zero energy transition, take a read of our series of e-guides, here. Or if you have any questions and would like to speak to one of our friendly team, get in touch at heretohelp@brytenergy.co.uk.