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What is the Smart Export Guarantee?
In 2019 it was announced that homeowners will get payment for any green energy that they export back to the grid.
So, let’s look at how the Smart Export Guarantee (SEG) might work for you.
The Smart Export Guarantee (SEG) is a scheme the government put in place following the suspending of the Feed-In-Tariff in March 2019.
The scheme ensures that energy suppliers with over 150,000 domestic customers will be required to pay the customer for any energy exported to the grid that has been produced from a renewable energy source. Energy companies with fewer than 150,000 domestic customers can voluntarily offer a tariff scheme, though if they do, they will have to adhere to the same rules.
The energy companies have been allowed to set their own tariffs and the way the scheme is implemented. The only proviso is that the tariff must be greater than zero
All energy suppliers that need to offer payments must have a scheme in place for January 1st 2020.
How can I find out if I’m eligible?
All installations from April 2-19 should be eligible. If you already receive the Feed-In-Tariff, and/or a deemed export payment then you will not be eligible for SEG payments.
Your installation must be less than 5MW and energy must come from one of the following sources;
• Solar PV
• Micro-combined heat and power
• Onshore wind
• Anaerobic digestion
You will also need to have a Smart Meter capable of producing half-hourly readings for energy export.
Your installation must be installed to MCS standards or equivalent. This includes using certified products and a registered installer.
Payments will commence from the date that you apply for them. The payments can not be back dated. This will be the same if you switch suppliers after the SEG payments have started.
I already receive FIT payments, should I switch?
FIT payments are guaranteed for 20 years from the date of the installation. Two payments are made, one for the power generated and the other for the power that is exported to the grid. This scheme was set up by OFGEM with government help, and payments are the same no matter which supplier you are with.
The FIT payments are likely to be higher than the SEG payments which is solely based on how much you export to the grid.
SEG is paid to you by your energy supplier and is intended for new renewable energy generation customers only.
The SEG payments are paid out by the energy company that you purchase your energy from and are aimed at new ‘renewable generation’ customers only.
The two types of tariffs available.
• Fixed – The payment is a fixed amount per kilowatt hour (kWh) of renewable electricity you send to the grid. There is no change depending on demand.
• Flexible – The payment is dependent on the demand for electricity. You are likely to receive a higher rate per kilowatt hour (kWh) when demand on the grid is greater.
These tariffs are likely to be added to as we move towards a smarter grid. There could be multiple tariffs that could vary on different days, times, etc.
The amount that your energy supplier pays you for exporting energy must not be zero. There is a tariffs comparison table on the Solar Trade Associations website here - https://www.solar-trade.org.uk/seg/
Will having battery storage affect my SEG?
Battery storage is not currently included as a source of generation. However, the SEG guidance states that energy suppliers can include payments for battery storage providing the storage is co-located with a generation source. It is, therefore, down to individual companies to decide if they are to include export from storage and how these payments work and are paid.
The Solar Trade Association tariffs comparison table, above, states which energy companies accept storage as party of their SEG payment scheme