What is the Smart Export Guarantee?
On January 1st 2020 the Smart Export Guarantee (SEG) came into action providing small-scale renewable energy generators the ability to earn money from their excess energy. In this article, we explain the background of the scheme and how you can apply.
What is the SEG and who can get it?
The Smart Export Guarantee (SEG) scheme was developed by the Department of Business, Energy and Industrial Activity (BEOS) that pays small generators for the energy they export to the grid. It arose following the termination of the Feed-In Tariff (FiT) back in March 2019.
All solar PV owners with a generating capacity less than 5MW can get paid for their exported power via a SEG tariff. Other eligible candidates include owners of onshore wind, hydro or AD sites with a capacity under 5MW, and Micro-CHP with a capacity up to 50kW.
To be eligible for the SEG the renewable technology must have been installed by a certified Microgeneration Certificate Scheme (MCS) installer.
How much can I earn through a SEG tariff?
There are both fixed and variable SEG tariffs available on the market.
At Good Energy, we offer highly competitive export tariffs. Customers who install both solar panels and a battery with us can access our 25p per kWh export tariff for the first 12 months (Solar Savings Exclusive). Customers with solar-only systems, or systems installed by another provider, can join our standard Solar Savings export tariff, which currently pays 12p per kWh.
In the 9 months Imogen has had her solar panels installed, she has made over £230 through the Solar Savings export tariff.
Can I get an export tariff if I receive the Feed in Tariff?
The Feed in Tariff (FIT) is made up of two payments – a generation payment that rewards you for everything you generate, regardless of whether you use it in your home or export it; and an export payment. Generation payments are typically the bulk of the payment, with export payments between 5 – 7.39p per kWh.
You can opt to move onto an export tariff, while still receiving your generation payments – boosting your earnings.
As a guide, the average British household that exports around 50% of the electricity it generates could earn over £210 on our 12p/kWh rate, based on a 3.25kW solar array. That’s around £80 more than they would earn for exporting the same amount on the highest FIT export rate of 7.39p/kWh.
