What You Need to Know About the Smart Export Guarantee

Since the closure of the Feed-in Tariff the government has launched a new scheme, the Smart Export Guarantee (SEG), which became effective from 1 January 2020. The Smart Export Guarantee has been launched to encourage more use of renewable electricity to power homes.

The new scheme requires medium to large electricity supply companies (those with more than 150,000 electricity customers) to offer the Smart Export Guarantee to their customers. The SEG pays households for any excess renewable energy that they generate and do not use.

What Customers Need to Know

  • You must provide evidence that your installation is adequately certified (MCS – Microgeneration Certification or equivalent). Your installer should help in providing this evidence.
  • There are two types of SEG tariffs – a fixed rate and a flexible-rate. A fixed rate means that there is a set amount that the SEG pays per kilowatt-hour of electricity exported to the grid, regardless of the time of export. A flexible rate means that the SEG pays varying amounts depending on when there is or is not a high demand for electricity. The flexible tariffs use varying rates to either encourage customers to shift their electricity usage away from peak times or some may encourage customers to export more at peak times when the grid needs more power.
  • Because suppliers only pay for what is exported, you’ll need a meter that can measure this (usually a smart meter). You can speak to your import energy supplier to arrange for one to be installed if you don’t have one.

Who is the Smart Export Guarantee for?

The SEG is for anyone who installs one of the following energy sources:

  • Solar photovoltaic (solar PV)
  • Wind
  • Micro combined heat and power (CHP)
  • Hydro
  • Anaerobic digestion (AD)

However, the energy source must be up to a capacity of 5MW, or up to 50kW for Micro-CHP and must be in Great Britain.

Additional Resources

If you would like to find out more about the Smart Export Guarantee, we recommend these guides available from Ofgem:

https://www.ofgem.gov.uk/environmental-programmes/smart-export-guarantee-seg

https://www.ofgem.gov.uk/environmental-programmes/smart-export-guarantee-seg/about-smart-export-guarantee-seg

https://www.ofgem.gov.uk/publications-and-updates/smart-export-guarantee-seg