Import and Export Contracts: What Businesses Need to Know for Commercial Solar PV

What Are Import and Export Contracts?

An Import Contract is a traditional supply contract, governing the electricity a business buys from the grid. An Export Contract covers the electricity a business sells back, in this case from their installed Solar PV array. These agreements often form part of a wider energy strategy for companies investing in solar PV systems.

Why It Matters

Turn Excess Generation into Revenue

Manufacturing facilities typically have large roof or land areas suitable for solar arrays, which can lead to significant generation potential. However, there are often times where the solar output exceeds on-site demand.

Export contracts allow you to capture value from this surplus energy, contributing additional revenue streams or offsetting your energy bills through credits or payments.

Improve ROI and Strengthen the Business Case

Exporting unused electricity contributes to the overall financial performance of a solar installation. It can shorten the payback period and increase the return on your capital expenditure.

When combined with reduced import costs (thanks to the on-site generation and usage), Export Contracts enhance the long-term financial viability of the system.

Key Considerations

1. Metering Requirements: In order to export electricity and be eligible to receive payments, your business must have a smart meter or half-hourly export meter capable of recording real-time data. This allows accurate tracking of exported electricity and ensures proper compensation.
2. Contract Structures and Rates: Export rates can vary significantly across suppliers and contract types. Some offer fixed-rate tariffs, while others provide market-linked rates that fluctuate. Newer assets without a history of reliable generation may also struggle to attract the best offers. Similarly, businesses should seek Import Contracts which have the flexibility to adapt to their change in demand. Some agreements contain clauses that will penalise customers financially if they don’t consume as much grid electricity as they had previously committed to use.
3. Contract Length and Flexibility: Long-term contracts can lock in favourable rates, but may also restrict the ability to adjust terms as your energy usage or generation profile changes. When calculating the ROI, it is crucial to factor in the length and type of contract (for both Import and Export) as if rates are set to change in future years this can impact the payback period.

Import and Export Contracts play a vital role in maximising the value of commercial solar PV systems. Whilst the benefits – energy savings, revenue from exports, and reduced reliance on the grid – are clear, careful planning and due diligence are essential. By understanding the impact of metering, tariffs, and regulatory requirements, businesses can make informed choices that secure their financial gains.

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Noble Green Energy and L&C Utility

Through our partnership with L&C Utility, Noble Green Energy provides expert support with energy import and export contracts – helping you maximise the financial return from your solar PV system.

L&C Utility works with businesses aiming to reduce energy costs and integrate energy purchasing into their wider commercial strategy. Their flexible, forward-thinking approach allows them to deliver sustainable, cost-effective outcomes tailored to each client.

With trusted advice and proven expertise, L&C Utility empowers businesses to manage utility costs more effectively and create a strong foundation for achieving their Net Zero ambitions. Visit: lcutility.co.uk

Find out how to maximise the potential of your commercial solar PV: Solar PV Import & Export Contracts

Get in touch with Noble Green Energy today to discuss your requirements and take the first step towards your sustainable future.