Smart Export Guarantee Scheme
Generators of renewable electricity in England, Scotland, and Wales can take advantage of the Smart Export Guarantee (SEG) tariff. This government initiative allows renewable electricity generators to export their power back to the National Grid and receive payment for it.
You are not automatically enrolled in the scheme; you must sign up for a specific SEG tariff to benefit. The Smart Export Guarantee Scheme has replaced the Feed-in Tariffs.
Who Can Join The Smart Export Guarantee Scheme?
Any business or individual with renewable energy technology with a capacity of up to 5 Megawatts, or up to 50 kW for micro combined heat and power, is eligible to join. The following renewable technologies are recognised by the scheme:
- Solar panels
- Wind
- Hydro
- Micro combined heat and power
- Anaerobic digestion
How Do I Qualify for the Smart Export Guarantee?
As the FIT scheme is now closed to new applicants, you’ll need to apply for the Smart Export Guarantee in order to receive payments for using renewable technologies.
To qualify, all of the following requirements must be met:
- You must have one of the enlisted renewable energy technologies and they must meet the standards of the Microgeneration Certification Scheme (MCS). The qualifying renewable technologies include Solar PV panels, wind turbines, micro combined heat and power, anaerobic digestion and hydro.
- A Smart or AMR meter that can provide half hourly readings must be installed.
- You must have an Export MPAN (these can be provided by some suppliers).
- You must complete an application form and provide all the relevant documentation such as an MCS Certificate and a completed Vendor/Bank form.
How Do Smart Export Guarantee Tariffs Work?
The energy supplier you choose (SEG licensee) will determine the payment rate and contract length for your tariff. Payments will be calculated using an export meter and made by the supplier you select. It is important to compare SEG tariffs to find the best rates and terms for exporting back to the National Grid.
Smart Export Guarantee Tariff Suppliers
- British Gas
- E Gas & Electricity
- EON
- EDF
- Utility Warehouse
- Octopus Energy
- Shell Energy
- Ovo Energy
- Scottish Power
- SO Energy
- Utilita Energy
- Rebel Energy
- Poiztive Energy
Source: Ofgem.
How Much Can I Earn From An SEG Tariff?
On average, you can expect to earn about 4.1p per kWh exported back to the National Grid. Each supplier offers slightly different rates.
What is the difference between Feed-In and Smart Export Guarantee Tariffs?
The key difference between Feed-In-Tariffs and the Smart Export Guarantee is that with the FIT scheme, you would receive payments when you generate and export electricity, whereas with SEG, you only receive one payment for the electricity you export to the grid.
SEG also measures the amount of electricity you export to the grid and pays you for that, whilst FIT would estimate 50% of the total amount of energy you generated and paid you for this.
Additionally, the government along with Ofgem were in charge of setting FIT payment rates, so they were the same regardless of the supplier. In contrast, energy suppliers set their own tariff rates with SEG.
Furthermore, a levy on customer energy bills contributed to FIT payments, whilst SEG payments are made by energy suppliers.
Smart Export Guarantee FAQs
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What is an SEG licensee?
An SEG licensee is the energy supplier that provides your tariff and issues payments for the electricity you export to the National Grid.
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Can I get other grants whilst on an SEG tariff?
Yes, you can still access other grants while using an SEG tariff, provided you are eligible
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Can I still get Feed-in tariff payments?
If you are already an applicant on the FIT scheme, you cannot apply for SEG. Your FIT payments will continue until your contract ends. FIT contracts typically last around 20 years.
If you want to apply for SEG, you’ll need to opt-out of the FIT scheme. However, this is not usually recommended as the rates for FITs are generally higher than SEG payments.