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Microgeneration

Benefits of home and community microgeneration

  • 3 things to know
  • AS 1

Overview

Lower bills and payback calculations, carbon savings, security of supply, the Feed-in Tariff and Smart Export Guarantee, the Boiler Upgrade Scheme, the Renewable Heat Incentive lesson and community ownership.

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Key term

Identify the main benefits of home and community microgeneration.

Key term

How does microgeneration reduce a household's energy costs?

Numbers

A household microgeneration system costs £9,000 and saves £750 a year. Calculate its simple payback period.

Questions from this subtopic

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  1. 1

    Identify the main benefits of home and community microgeneration.

    Model answer

    Microgeneration reduces energy costs and contributes to environmental targets. Microgeneration also enhances security of supply and can earn financial incentives.

  2. 2

    How does microgeneration reduce a household's energy costs?

    Model answer

    Energy generated on site replaces electricity or fuel that would otherwise be bought. Surplus electricity exported to the grid can also earn payments.

  3. 3

    A household microgeneration system costs £9,000 and saves £750 a year. Calculate its simple payback period.

    Model answer

    The simple payback period is 12 years. The working is £9,000 ÷ £750 per year = 12 years.

  4. 4

    A system generates 3,000 kWh of electricity a year, displacing grid electricity that emits 0.2 kg CO₂ per kWh. What carbon saving does it make each year?

    Model answer

    The system saves 600 kg of carbon dioxide a year. The working is 3,000 kWh × 0.2 kg/kWh = 600 kg.

  5. 5

    How does home microgeneration contribute to environmental targets?

    Model answer

    Each installation displaces fossil fuel energy and counts towards renewable energy targets. Across many thousands of homes the savings add up to a significant share of national emissions.

  6. 6

    How does microgeneration enhance security of supply?

    Model answer

    Many small, distributed sources reduce dependence on imported fuels and on a few large power stations. A fault at one site affects only that site, not the whole system.

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