Smart Export Guarantee (SEG)

About The Smart Export Guarantee (SEG)

The SEG launched on 1 January 2020 and is a government-backed initiative. The SEG requires some electricity suppliers, known as SEG Licensees, to pay small-scale generators, known as SEG Generators, for low-carbon electricity which they export back to the National Grid, providing certain criteria are met. 

The smart export guarantee usually takes up to 4 weeks for confirmation. This is usually applied for by us but depending on your area it is up to your energy provider which we will let you know in due course.

Who Is The Scheme For?

  • Anyone with an installation of one of the following technology types up to a capacity of 5MW, or up to 50kW for micro-CHP.
  • Solar photovoltaic (solar PV)
  • Wind
  • Micro combined heat and power (micro-CHP)
  • Hydro
  • Anaerobic digestion (AD)

Installations must be located in Great Britain and meet the applicable eligibility criteria.

How Does The Scheme Work?

SEG Licensees determine the rate, contract length and other terms which SEG Generators will receive. SEG tariff rates must always be above zero. SEG payments are calculated by using export meter readings. SEG Generators are paid by their chosen SEG Licensee for the electricity which they export back to the National Grid.

Generators thinking of applying for a SEG tariff should shop around to see which tariff is best for their individual circumstances. Our page for Generators has more information on how to apply and the specific eligibility criteria. You can also find the list of current SEG Licensees which we publish annually.

For more guidance on smart export guarantee click the link Smart Export Guarantee Guidance

What Is The Smart Export Guarantee (SEG)

The Smart Export Guarantee (SEG) is a government-backed initiative in the United Kingdom that encourages the generation of renewable energy, particularly solar power, by providing financial incentives to small-scale electricity generators who export surplus electricity back to the grid. It was introduced in January 2020 as a replacement for the Feed-in Tariff (FiT) scheme, which provided similar incentives but was phased out.

Key points about the Smart Export Guarantee (SEG) include:

Eligibility

SEG is open to homeowners, businesses, and other organizations that have installed eligible renewable energy systems, such as solar panels, wind turbines, or hydroelectric generators, with a capacity of up to 5 megawatts.

Export Payments

Under the SEG, electricity suppliers are required to offer payments to eligible generators for the surplus electricity they export to the grid. These payments are typically made per kilowatt-hour (kWh) of electricity exported.

Tariff Rates

The rates for SEG payments are set by individual energy suppliers, and they can vary. Suppliers are required to offer tariffs that reflect the market value of exported electricity. This means that the rates may fluctuate over time.

Duration

Unlike the Feed-in Tariff, which had fixed tariff rates for a set number of years, SEG tariffs can be offered on varying contract durations, depending on the supplier. This provides more flexibility to both generators and suppliers.

Metering

To participate in the SEG, generators need a smart meter or another export metering system that accurately measures the electricity they export to the grid.

Registration

To receive SEG payments, generators need to register with an eligible electricity supplier that offers the SEG scheme. They should choose a supplier that offers competitive rates and contract terms.

Government Backing

While the government no longer sets the tariff rates as it did with the Feed-in Tariff, it does require electricity suppliers to participate in the SEG scheme, ensuring that small-scale renewable energy generators can receive payments for their exported electricity.

The Smart Export Guarantee aims to encourage the growth of small-scale renewable energy generation and reduce carbon emissions in the UK by incentivizing homeowners, businesses, and organizations to invest in renewable energy systems. However, it’s essential for those interested in the SEG to carefully compare tariffs and contract terms offered by different electricity suppliers to maximize the financial benefits of the scheme.

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