How better export tariffs will lead to a fairer distribution of energy

• 3 hours ago (2025-09-13)
• Junior Isles

Renewables 805 Smart meters 1

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Scott Barber , Head of I&C, POWWR

With electricity prices remaining elevated and increasingly stringent regulatory pressure to improve sustainability, many businesses are turning to on-site renewables to power their operations. Many are becoming savvier, too. With some researching, selecting, and implementing their preferred solutions without the assistance of traditional players in the space.

In the US, retail giant Walmart has already converted a large proportion of its 780 million combined square feet of rooftop space for solar energy systems and has committed to add 10 GW of further clean energy capacity by the end of the decade . The move has been so successful, that the company now sells off its excess supply to the local community.

An important catalyst

Technology advancement has been an important catalyst to the trend. The latest artificial intelligence (AI) backed software platforms can analyse huge amount of data quickly, so that businesses can forecast demand, scheduling, and position reporting effectively. Modern distributed energy resource management systems (DERMs) can also help ensure the process works optimally by ensuring energy is correctly balanced throughout.

Improvements to battery technology have also played a part as excess energy can now be stored. Modern lithium-ion batteries in particular have far better energy density, allowing for longer-lasting batteries in smaller, lighter packages.

Empowered to make the best decisions

The importance of data to facilitate this transition of the UK energy industry has been recognised by Ofgem as well. Part of Capita PLC, the Data Communications Company (DCC) operates under the Smart Meter Communications Licence and is regulated by Ofgem. The DCC is responsible for linking smart meters with energy suppliers, network operators and energy service companies to ensure that all are empowered to make the best decisions.

Of course, it is important that this data gets into the right hands. The Meter Operator Agreement (MOP) is the important contract that covers the costs associated with installing, maintaining, and operating the meters. The MOP is important as it ensures that all meter data is communicated accurately to those that need it. The benefits are clear. More precise billing and better energy management.

Trading partners

As technology improves, data becomes more accessible, and the move to renewables advances, we are going to see more and more peer-to-peer (P2P) energy trading. The practice allows direct energy exchanges among community members, eliminating the traditional supply chain and, indeed, the need for conventional energy providers.

One of the companies leading the way is UrbanChain , a Manchester-based energy technology company focused on connecting renewable energy generators and users to create a fairer and cleaner local energy market. Founded in 2017, it is making energy affordable for all by enabling local renewable generators to trade power directly with consumers.

Solar and private networks

Unsurprisingly, one of the first sectors to embrace the concept of P2P energy trading has been business parks who often sell energy direct to their tenants. Some have installed huge arrays of angled solar panels on top of their buildings and car parks. The benefits can be huge. One UK government report suggests that an 80-space car park could save the business as much as £28 000 a year on their energy bills. According to Prof Mark Barrett of the UCL Energy Institute the potential for solar carports is 11 GW, which would add around 40 per cent to the UK’s current solar capacity of around 15 GW .

With energy requirements increasing exponentially due to the advent of energy-sapping AI, this couldn’t be timelier. The Future Point Manchester project in Carrington is one such project that understands this concern. It is looking to deliver over 3000 data-enabled jobs across the region. Yet, hosting one of Europe’s biggest data centres saps a lot of energy. It is, therefore, co-locating more than 500 MW of onsite low carbon power production with large demand users, linked via a private electricity network.

Giving back

A fairer distribution of energy is what is at the heart of all of this. This has to be a good thing. It will take the stress off an often-overwhelmed grid and ensure wastage is limited. By increasingly the supply it will help to lower the cost of energy too.

This will fundamentally change the industry. In the future, customers will look at what they will receive to sell back excess energy to the grid as much as what they pay per kWh. This export tariff will become the new bargaining chip for brokers and TPIs alike. In fact, savvy businesses are already locking in export tariffs now to secure their future. It is a trend that is not going to go away. The good news is that as the move to renewables and technology continues to advance, these export tariffs will only become more sophisticated and granular.

The need to be smarter

The net result of this shift is not just a more robust and sustainable energy system, but the decoupling of users from fluctuating energy prices and complex tariffs. Suppliers will need to be smarter, and more flexible, with the deals that they offer or risk being left behind. To compete moving forward, suppliers must pay as much attention to the export tariffs as the retail cost of energy so as to appeal to a more