The Smart Export Guarantee (SEG) is a UK government scheme that was introduced in January 2020 to replace the Feed-in Tariff (FIT) scheme. The SEG is designed to encourage the uptake of small-scale renewable energy technologies by providing a financial incentive for households and businesses to generate and export their own electricity to the grid.
Under the SEG, energy suppliers with over 150,000 customers are required to offer a tariff to their customers for the electricity they export to the grid. The tariff rate is set by the supplier and can be fixed, variable or a combination of the two. The rate must be greater than zero and should reflect the wholesale market price of electricity. This means that the SEG offers a fair and transparent price for the electricity that households and businesses generate and export to the grid.
The SEG is open to all small-scale renewable energy technologies, including solar PV, wind turbines, and hydroelectricity. In order to be eligible for the SEG, households and businesses must have an installation with a capacity of up to 5MW, and it must be installed by a certified installer. The SEG is also open to installations that were installed under the FIT scheme before it closed to new applicants on 31 March 2019.
The SEG is a great way for households and businesses to earn money from their renewable energy installations. By exporting their excess electricity to the grid, they can reduce their energy bills and earn a payment from their energy supplier. This means that the SEG offers a financial incentive for households and businesses to invest in renewable energy technologies, which is good for the environment and the economy.
However, it’s worth noting that the SEG is not the only way to earn money from renewable energy installations. Homeowners can also benefit from the savings they make on their energy bills by generating their own electricity, and businesses can benefit from the tax incentives that are available for investing in renewable energy.
In conclusion, the Smart Export Guarantee is a great scheme that provides a fair and transparent price for the electricity that households and businesses generate and export to the grid. By offering a financial incentive for renewable energy technologies, the SEG encourages households and businesses to invest in clean energy, which is good for the environment and the economy.
Smart Export Guarantee OFGEM
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