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The Smart Export Guarantee – New Scheme for small-scale renewable energy generators.

The Department for Business, Energy and Industrial Strategy (BEIS) is introducing the scheme (SEG) to replace the Feed in Tariff (F.I.T.) scheme which closed to new installations in March this year.

The scheme is set to take effect by 1st January 2020

The Smart Export Guarantee is a scheme, designed to pay people who generate small amounts of renewable energy for the electricity that they export to the grid.

This applies to renewable energy generation systems using one of the following technologies:

  • Solar PV panels
  • A domestic wind turbine
  • Hydro
  • Anaerobic digestion
  • Micro combined heat and power

Under the scheme, all licenced energy suppliers with 150,000 or more customers must provide at least one Smart Export Guarantee tariff. Smaller suppliers also have the option to offer a SEG tariff on a voluntary basis but will be held to the same operational requirements as larger suppliers.

Anyone who already receives payment for their Feed-in Tariff on their installation will be unaffected by the launch of the Smart Export Guarantee.

How much can you earn?

Unlike the FiT scheme which had clear guidelines on payment rates, based on various factors, suppliers can decide what their SEG rates will be. A figure of 5.5p per kWh has been suggested.

The Solar Trade Association, some Labour and Conservative MPs, wanted a minimum floor price. The only a requirement that tariffs must be above zero. The only guarantee under SEG is that generators up to 5MW will be guaranteed payment from suppliers.

The government does say that it will intervene should energy suppliers not provide sufficiently competitive tariffs.

Read the Government resolution here

Green Energy


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