Whether you're already benefiting from an installed solar PV system or are exploring green energy options for your business, the Smart Export Guarantee (SEG) is a scheme worth considering.
The SEG allows businesses and households to export surplus green energy from solar PV or other qualifying systems to the grid, receiving payments in return. By contributing your excess solar energy to the grid, you can offset the initial costs of your solar installation and shorten your payback period.
This article will go into detail about the Smart Export Guarantee scheme, exploring how it can enable businesses to profit from their unused renewable energy.
What is the Smart Export Guarantee?
The Smart Export Guarantee (SEG) is a UK government-backed initiative that requires large energy suppliers to pay homeowners and businesses for exporting unused renewable electricity to the National Grid. The initiative is part of the UK government’s strategy to reach net-zero carbon emissions.
The scheme mainly targets homes and businesses with solar panel systems, which often generate more electricity than needed. Exporting this green energy helps increase renewable energy use across the UK and rewards contributors with payments for their green energy production.
Smart Export Guarantee Eligibility Criteria
All those who wish to receive compensation for exported green energy must apply to a SEG licensee, a participating electricity supplier in the SEG scheme. Each SEG licensee has specific requirements for applicants, the details of which should be available to view on their websites.
Eligible low-carbon systems for the SEG scheme include:
● Solar Photovoltaic (Solar PV)
● Hydropower
● Onshore Wind
● Micro-Combined Heat and Power (Micro-CHP)
● Anaerobic Digestion (AD)
To be eligible for the SEG scheme, these systems must be located in Great Britain and have a total installed capacity (TIC) of no more than 5MW (or 50kW for micro-CHP systems).
Additionally, to ensure your low-carbon system qualifies for the initiative, your application must:
● Be able to demonstrate the installation and/or installer are certified (by presenting an installation certificate or a Microgeneration Certification Scheme.
● Confirm you have an export meter fitted.
● Provide an export meter point administration number (MPAN). This 13-digit number is usually found on your electricity bills.
Choosing a SEG Licensee
You can only export energy to one SEG licensee, so it’s important to choose carefully. Apart from paying above zero pence per kilowatt hour for exported energy being a requirement, there are relatively few guidelines surrounding the conditions of export tariffs. Each licensee is free to decide the terms of their SEG export tariff, including rate, type, payment schedules and duration.
Just like tariffs for electricity consumption, there may be a range of SEG export tariffs available to you. Some suppliers may compete to offer you a high rate or favourable terms. If a tariff becomes uncompetitive, you may consider switching to a supplier with better offerings.
Smart Export Guarantee Rates
There are currently 13 SEG licensees offering SEG tariffs, each with different rates for the electricity you export. Although you can choose any supplier for your SEG tariff, some companies reserve their best rates for existing customers.
For example, Octopus, Scottish Power, EDF and E.ON provide higher SEG rates to their own electricity customers, while OVO, Good Energy, and So Energy offer favourable rates to customers who installed solar panels with them.
Currently, E.ON’s Next Export Exclusive tariff offers 16.5p per kilowatt hour (kWh), making it the highest SEG rate for those without a solar battery. With this tariff, a typical solar panel owner should earn around £219 annually by exporting their surplus green electricity to the grid.
Depending on your stage in the solar panel journey, it’s worth checking the SEG rates from your current energy supplier and comparing them with other participating SEG licensees to ensure you receive the best rate for your energy.
The Smart Export Guarantee Application Process
To apply for the Smart Export Guarantee (SEG), start by installing a low-carbon system, such as a solar PV system, that meets SEG eligibility criteria. Next, choose an SEG-licensed electricity provider, as each has different rates and terms. After selecting your provider, submit an SEG export tariff application for their review, where your installation is checked for eligibility.
If successful, they’ll provide a written confirmation of the terms for receiving payments. This document acts as the contract under which SEG payments will be made. Then, begin exporting your surplus energy to the grid, receiving regular payments based on your agreed tariff.
Frequently Asked Questions
Can I receive a SEG export tariff if I receive a government grant for installation?
Yes, receiving a government grant for solar panel installation doesn’t impact your SEG eligibility.
Can I receive payments from both the Feed-in Tariff (FIT) scheme and the SEG scheme?
No, you cannot receive an export tariff from both the Feed-in Tariff (FIT) and the SEG scheme. Generators in receipt of an export tariff under the Feed-in Tariff (FIT) are ineligible for SEG payouts.
Can I receive a SEG export tariff if I receive payments from the Renewable Heat Incentive (RHI) scheme?
Yes, you are entitled to receive both RHI and SEG payments. RHI payments support renewable heat generation, while the SEG supports renewable electricity exported to the grid.
Can I expand my SEG installation and Continue to receive a SEG export tariff?
You can add capacity to an existing installation, but if it exceeds 5MW (or 50kW for micro-CHP), SEG licensees aren’t required to pay for the extra capacity. Additional eligible technology types (e.g., adding a wind turbine to an existing solar PV setup) count as separate eligible installations with their own TIC limits of up to 5MW (50kW for micro-CHP).
Sol PV Group
Solar PV systems are among the most common green energy solutions for the SEG scheme, given their versatility and the availability of government funding, making them an attractive option for many properties.
At Sol PV Group, we’re a green energy provider dedicated to helping companies become solar businesses. Our award-winning team offers custom commercial solar solutions, ensuring sustainable and cost-effective energy. From installation to maintenance, we simplify your transition to renewable power with Solar PV systems, solar battery storage and EV charging.
For more information on how we can help you implement green energy strategies and become a solar business, contact our team today!
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