People living in England, Scotland, and Wales are eligible to benefit from a Smart Export Guarantee (SEG) tariff (it’s not currently available to residents of Northern Ireland). The SEG tariff was launched as a support mechanism to guarantee payment to small-scale generators for the renewable energy they export to the national grid.
Who is eligible for the SEG tariff?
The tariff is available to small-scale generators of renewable energy who currently reside in the United Kingdom (excluding Northern Ireland). You might be eligible to apply for the tariff if you generate renewable energy from one of the following technologies:
- Solar PV panels.
- Wind turbines.
- Hydro.
- Anaerobic digestion.
- Micro combined heat and power (micro-CHP).
Why was the tariff launched?
The Smart Export Guarantee was launched by the Department for Business, Energy, and Industrial Strategy in January 2020, in recognition of the fact that small-scale generators of renewable energy needed support.
It’s essentially a replacement of the Feed-in Tariff Scheme that ended in March 2019 and has proven popular since its launch. Under the terms of SEG, licensed energy companies with more than 150,000 customers must provide at least one SEG tariff.
At present, the SEG supports small-scale generators with renewable energy installations that fit the following criteria:
- Solar PV systems, onshore wind, anaerobic digestion, hydro (up to 5MW).
- Micro-CHP (with an electrical capacity of up to 50kW).
This essentially supports all domestic renewable energy systems, as they tend to fall within the size limits listed above.
What are the terms of the SEG tariff?
At present, there are no set or minimum tariffs for the SEG. The primary requirement is that the tariff must be higher than zero at all times. Essentially, this allows energy providers to decide what tariff to offer their customers, and it is likely to vary from company to company.
SEG tariffs can be fixed or variable, but the terms will be stipulated within the contract. You can find out more about the terms and conditions of the SEG, as well as participating firms by visiting the Ofgem website.
Can I claim SEG with energy storage?
Lots of people in the UK are realising the importance of installing an energy storage system in their renewable energy installation, something that AceOn is pioneering in different parts of the UK. The good news is that you can still apply for the SEG tariff if you have an energy storage system, but you might be subject to slightly different rules, which will be stipulated within the SEG contract.
Some suppliers will only pay for ‘green’ electricity, whereas other will also choose to pay you for ‘brown’ electricity that is exported to the grid. The onus is on you to speak to the energy provider about the terms and conditions of their SEG tariff.
What other financial incentives are available for renewable energy in the UK?
The SEG tariff is just the latest government-backed initiative to support the progression of renewable energy in the UK. Some energy suppliers offer similar deals to the SEG tariff, independent of government legislation, that rewards homeowners for exporting power to the grid.
The best place to find out more about the latest financial incentives for homeowners throughout the UK who have a renewable energy source installed, is to visit Solar Energy UK’s website.
How do I find out more about the SEG?
For more information about the Smart Export Guarantee tariff, click here. You could also contact your current energy supplier to discuss their available tariffs and how to apply if you have a renewable energy source at your home.
