As energy prices soar to levels previously unseen and concerns grow around supply security, the role of prosumers looks set to accelerate. But what is a PROSUMER? We sit down with NICEIC’s Head of Technical Services, Paul Collins, to learn more.
Q. For those who may be unfamiliar with the term, what is a ‘prosumer’?
The term prosumer has many meanings. However, in our world (electrotechnical), a prosumer is an entity or party which can be both a producer and consumer of electrical energy.
Currently the European Renewable Energies Federation estimates that there will be as many as 24 million clean energy prosumers in the UK by 2050, up from 1 million back in 2015.
Q. Ok, so are we talking about solar panels generating electricity to run homes and buildings?
Yes and no. Right now, prosumers predominantly generate their electricity through solar photovoltaic (PV) panels on their roofs. However, technology is evolving, and this is only one of the systems being deployed.
Disrupting the traditional model, whereby power stations supply power to customers across the UK, many of these prosumers are purely focusing on becoming more (or entirely) self-sustaining “off-grid”, while others are actually working to become significant contributors to the grid, selling the surplus energy generated.
This step-change is being made possible by the rollout of battery storage technology. Consumers are now not only able to generate electricity via technologies such as solar PV, they can store it and choose when to utilise it, such as during peak hours when electricity supply is expensive. Adding this previously missing link opens up a world of opportunities and choices.
Q. Sounds exciting, but what are the drivers and barriers?
The drivers of this trend are plentiful:
* Consumer awareness of climate issues is prompting many to invest in cleaner technologies
* The cost of solar PV has fallen by as much as 75% over the past decade
* The uptake of electric cars is rising, and consumers want greener, less expensive ways of charging these vehicles
* Battery technologies are allowing consumers to capture energy during times of plenty and use it later.
Add to this the combined impact of rising energy bills and fears over insecurity of supply, and many would-be prosumers are beginning to bring their plans forward.
The barriers? Well, these are the traditional ones associated with all new technologies. While consumer awareness is growing, it isn’t yet commonplace.
There is a lot of education needed to support the switch as it isn’t simply about the physical and financial aspects of installing these technologies. To make the best use of them, there is an element of behaviour change needed, particularly when it comes to heat pumps.
As always, cost is a primary barrier. While prices are coming down, new technology always carries a hefty price tag in the beginning. Much is, however, being done in this area, and the government is supporting innovation to lower manufacturing costs.
This action is further backed by grants to support low carbon heating installations and VAT breaks on material costs. Even the big banks are getting in on the act with the likes of Lloyds and Santander reaching out to consumers with loans to support sustainable home improvements.
While we feel there is much more to be done, the 10-point plan has set out the road map, and we anticipate further support will be forthcoming in the future.
Q. What advice would you give electrical professionals around taking advantage of the rise in prosumers from a business perspective?
Competence is vital, change is coming, and as the old saying goes ‘failing to prepare is preparing to fail’. If you want to make the most of the opportunities coming down the track, consider training and upskilling in the likes of solar PV, heat pumps and EV charging installations.
If expanding your business model isn’t quite right for you, you still need to ensure you are up to speed with the regulations related to low carbon technologies.
You will note, the recently released Amendment 2 of BS 7671 added to the existing requirements around the installation of Solar PV systems and detailed how prosumer equipment might operate.
It covers key areas such as energy efficiency measures and the interface with the grid, as well as the management of electricity consumption, renewable sources of electricity, and energy storage.
Being up to speed in this area is vital as you will increasingly be called upon to define and install electrical equipment for these new systems.
You are also keenly positioned to advise your customers and help them to prepare.
For example, if you’re undertaking a re-wire or replacement of a consumer unit which doesn’t have any spare ways, now might be the time to talk to your customers about adding provisions to support installations in the future.
We understand money is tight for all at the moment, and for many installing heat pumps and/or solar panels today may simply be out of the question. However, by thinking about the supporting infrastructure during maintenance and planned upgrades, consumers could be making savings in the future.
Q. Do you think more legislation is needed to mandate the use of low-carbon technologies?
I think there needs to be a combination of financial incentives and supporting legislation, both of which are starting to come through.
As a country, we have a legally binding commitment to reach net-zero by 2050. To do this, the way we heat/ventilate our homes and buildings and power our transport must evolve, and many small but significant steps will be taken along the way.
A recent example of this was seen in the introduction of Part S of the Building Regulations (England), which came into force in June. Under this rule, all new builds and buildings undergoing major renovations are now required to include provisions for EV charging infrastructure.
Add to this the major plans seen in the 10-point plan, such as the ban on the sale of fossil-fueled boilers in 2035, and it’s clear we’re heading for mass-market adoption of low-carbon technology.
Q. How do you predict this will all play out and how quickly will we see significant change?
That’s a difficult one to answer as there are so many variables involved. What I will say though is the prosumer trend is only going to accelerate over the coming years. If you’d have asked me the same question a couple of years ago, I’d have said there will be a steady growth in prosumers over a number of years.
However now, as people are worried about the energy crisis and security of supply, I expect to see things ramping up sooner, especially after energy prices go up again in October.
NICEIC offers a wide range of courses to support contractors looking to upskill in the maintenance and installation of low carbon technologies.
To get more NICEIC training course details and ate, click here
