I. Introduction

 

The Smart Export Guarantee (SEG) is a scheme that allows homeowners and businesses in the United Kingdom to receive payments for the excess energy they generate and export back to the grid. The SEG replaced the Feed-in Tariff (FiT) scheme, which ended in April 2019. The purpose of the SEG is to encourage the uptake of renewable energy technologies and support the UK’s transition to a low-carbon economy.

Under the SEG, homeowners and businesses with eligible renewable energy systems such as solar panels, wind turbines, or hydroelectric generators, can receive payments from their energy supplier for each unit of excess electricity they export to the grid. This can help reduce energy bills and provide a source of income for those generating their own electricity. The SEG is designed to be more flexible than the FiT scheme, with payment rates determined by energy suppliers and not the government, which can vary between suppliers and change over time.

The Smart Export Guarantee (SEG) explained with solar panels on roof

II. What is the Smart Export Guarantee (SEG)?

 

The Smart Export Guarantee (SEG) is a scheme that was introduced in the United Kingdom to replace the previous Feed-in Tariff (FiT) scheme. The purpose of the SEG is to incentivize the adoption of renewable energy technologies by allowing homeowners and businesses to get paid for the excess energy they generate and export back to the grid. This is achieved by requiring energy suppliers to offer a tariff to their customers for electricity that they export to the grid.

Under the SEG, homeowners and businesses with eligible renewable energy systems, such as solar panels or wind turbines, can receive payments from their energy supplier for each unit of excess electricity they export to the grid. The SEG scheme is open to small-scale generators with a capacity of up to 5MW, which includes most domestic renewable energy installations. The scheme is designed to be flexible, with payment rates set by energy suppliers, allowing them to compete with each other and offer different rates to their customers.

The SEG is intended to encourage the deployment of renewable energy technologies and reduce reliance on fossil fuels. Providing financial incentives for people to generate their own electricity and export any excess energy to the grid, can help to reduce carbon emissions and support the UK’s transition to a low-carbon economy. In addition, the scheme can help to reduce energy bills for households and businesses that generate their own electricity, making renewable energy more affordable and accessible.

III. Who is eligible for the SEG?

 

To be eligible for the Smart Export Guarantee (SEG), homeowners and businesses must have installed an eligible renewable energy technology with a capacity of up to 5MW. Eligible technologies include solar panels, wind turbines, hydroelectric generators, micro-combined heat and power (CHP) units, and anaerobic digestion. The technology must also be installed and commissioned by a certified installer in accordance with relevant standards and regulations.

Under the SEG scheme, homeowners and businesses can choose to either receive payments from their energy suppliers or sell their excess energy directly to the market. To be able to sell energy directly, the renewable energy system must be registered with the Microgeneration Certification Scheme (MCS) and the installer must also be certified by MCS.

Energy suppliers are required to offer a tariff for each unit of electricity exported back to the grid, but the payment rate is not fixed by the government. Instead, each supplier is allowed to set their own payment rate, which can vary depending on a number of factors, such as the time of day and the season. This means that customers may need to shop around to find the best payment rates available.

Overall, the Smart Export Guarantee scheme is designed to be flexible and inclusive, encouraging as many people as possible to invest in renewable energy technologies and generate their own electricity. By providing financial incentives and reducing barriers to entry, the scheme aims to support the UK’s transition to a low-carbon economy and help tackle climate change.

man applying for seg on his laptop

V. How to apply for the SEG?

 

To apply for the Smart Export Guarantee (SEG), homeowners and businesses must first have installed an eligible renewable energy technology with a capacity of up to 5MW. Once the installation is complete, customers can then begin the process of applying for the SEG.

The first step is to find an energy supplier that offers the SEG scheme. There are a number of energy suppliers currently offering the scheme, including some of the largest energy companies in the UK. Customers should research different suppliers and compare the payment rates and other terms and conditions before choosing a supplier.

Once a supplier has been chosen, customers can then apply for the SEG scheme. The application process will vary depending on the supplier but typically involves providing information about the renewable energy system being used, such as the type and capacity, as well as details about the installation and certification.

Customers may also need to provide details about their energy usage and how much excess energy they expect to generate and export to the grid. Some suppliers may require an export meter to be installed to accurately measure the amount of energy being exported.

Once the application has been processed and approved, customers can then begin receiving payments for any excess energy they export to the grid. It’s important to keep in mind that payment rates can vary over time, so customers may want to periodically check to ensure they are still receiving the best payment rates available.

Overall, applying for the Smart Export Guarantee scheme can be a straightforward process, but it’s important to do research and compare different suppliers before making a decision. By choosing the right supplier and carefully managing their energy usage, homeowners and businesses can potentially save money on their energy bills and contribute to a more sustainable future.

solar panels on UK roof

VI. Benefits and drawbacks of the SEG

 

The Smart Export Guarantee (SEG) scheme offers a range of potential benefits for homeowners and businesses with eligible renewable energy technologies. One of the main benefits is the opportunity to receive payments for excess energy that is generated and exported to the grid. This can help to offset the cost of installing and maintaining a renewable energy system and potentially even generate additional income.

Another benefit of the SEG scheme is the flexibility it offers. Customers can choose their energy supplier and potentially shop around for the best payment rates available. This can help to create a more competitive market for renewable energy, which may lead to lower prices for consumers over time.

However, there are also some potential drawbacks to the SEG scheme. One of the main drawbacks is that payment rates are not set by the government and can vary significantly between energy suppliers. This means that customers may need to regularly monitor and switch suppliers to ensure they are receiving the best payment rates available.

Another potential drawback is that the SEG scheme only applies to renewable energy systems with a capacity of up to 5MW. This means that larger businesses and organizations may not be eligible for the scheme, which could limit the uptake of renewable energy in these sectors.

Finally, some customers may find the application process for the SEG scheme to be confusing or time-consuming. The process can vary depending on the energy supplier, and some customers may need to provide detailed information about their renewable energy system and energy usage.

Overall, while the Smart Export Guarantee scheme offers a range of potential benefits for homeowners and businesses with eligible renewable energy technologies, there are also some potential drawbacks to consider. Customers should carefully research and compare different energy suppliers and consider the costs and benefits of the scheme before deciding whether or not to participate.

solar panels on house in the UK

VII. Conclusion

 

In conclusion, the Smart Export Guarantee (SEG) scheme is an important initiative that offers a range of potential benefits for homeowners and businesses with eligible renewable energy technologies. By allowing customers to receive payments for excess energy that is generated and exported to the grid, the scheme can help to offset the costs of renewable energy systems and even generate additional income.

While the scheme does have some potential drawbacks, such as the variability of payment rates and the eligibility restrictions on larger businesses, overall it represents an important step towards a more sustainable and renewable energy future.

If you are considering installing a renewable energy system and are interested in participating in the SEG scheme, it is important to research different energy suppliers and carefully consider the costs and benefits of the scheme before making a decision. With the right supplier and careful management of your energy usage, the SEG scheme can help you save money on your energy bills and contribute to a more sustainable future for us all.

Frequently Asked Questions

What types of tariffs are offered by different energy suppliers for the SEG?

When it comes to the Smart Export Guarantee (SEG), it’s important to keep in mind that payment rates are not set by the government and can vary significantly between energy suppliers. This means that customers may need to regularly monitor and switch suppliers to ensure they are receiving the best payment rates available.

To provide a more thorough understanding of the types of tariffs offered by different energy suppliers for the SEG, let’s take a closer look. We’ve done some research and found a range of 10 SEG packages from various suppliers, giving you a comprehensive view of your options.

Starting from the highest and going down to the more affordable packages, here are the details:

1. Octopus – Flexible tariff: Yes, with a price of 24p/kWh.
2. Octopus – Fixed tariff: Yes, with a price of 15p/kWh.
3. ScottishPower – Flexible tariff: Yes, with a price of 15p/kWh.
4. ScottishPower – Fixed tariff: No information on whether you need to be a customer, but the price is 12p/kWh.
5. British Gas – Flexible tariff: No information on whether you need to be a customer, but the price is 6.4p/kWh.
6. OVO Energy – Fixed tariff: Yes, with a price of 4p/kWh.
7. Shell – Flexible tariff: Yes, with a price of 3.5p/kWh.
8. E.On-Fixed tariff: No information on whether you need to be a customer, but the price is 3p/kWh.
9. EDF – Flexible tariff: Yes, with a price of 3p/kWh.
10. Utility Warehouse – Flexible tariff: Yes, with a price of 2p/kWh.

By providing this detailed breakdown, we hope to empower you to make informed decisions about the best tariff for your energy needs. Remember, keeping an eye on payment rates and exploring different suppliers can help you make the most of the SEG and ensure you are receiving the best rates available.

What are the costs associated with signing up for SEGs?

Signing up for SEGs does not involve any costs. It is free to join the scheme, allowing individuals to participate without any financial obligation.

How does using all the electricity generated save more money than SEG payments?

By using all the electricity generated from a renewable energy system, individuals can save more money compared to relying on payments from the Smart Export Guarantee scheme. This is because when they consume the electricity they generate, they do not have to purchase it from the grid, resulting in greater savings.

How much can the earnings vary depending on the size of the house and the buyback amount offered by the energy supplier?

The earnings can vary significantly depending on the size of the house and the buyback amount offered by the energy supplier. The mentioned figures are based on an average scenario, and actual earnings can be higher or lower depending on these factors.

What is the highest rate offered among the "open" SEGs?

Scottish Power’s SEG is mentioned as the “open” SEG that pays the highest rate among the available options.

How much can an average 3-bedroom home earn per year with Scottish Power's SEG?

An average 3-bedroom home can earn approximately £159 per year with Scottish Power’s SEG at the rate of 12p per kWh.