Earning money from renewable energy with the Smart Export Guarantee
The Government have proposed an initiative that will replace
Feed In Tariff scheme, called the Smart Export Guarantee (SEG).
While the Feed-in Tariff has had no direct replacement, the SEG
will essentially replace the Export Tariff.
The SEG will be active from 1st January 2020, with energy companies with over 150,000 customers obligated to offer a tariff to buy excess renewable energy.
The Smart Export Guarantee also applies to:
Micro combined heat and power (CHP)
Anaerobic digestion and bio-gas (AD)
The scheme will require energy suppliers to pay households for
the extra electricity they export to the National Grid. This will
allow homeowners to convert any unused renewable energy into funds, providing them
with an extra income on top of their energy bill savings.
Is the Smart Export Guarantee an improved Feed In Tariff?
The SEG is likely to be fairer than the old Feed in Tariff. Previously, homeowners were paid for only half of the electricity that
their solar panels were generating, even if they were exporting much more than
that to the National Grid. However, the Smart Export Guarantee pays out for
exactly what you export.
In addition, the Government will leave energy suppliers free to decide on their own prices for the tariffs provided to residents which encourages energy companies obligated by the scheme to offer competitive pricing that ultimately benefits the homeowner as they will be able to shop around for the best deals.
How to receive payments for renewable energy
If you have an eligible installation and are wanting to benefit from any extra energy you generate, you will need to apply to a SEG Licensee for payment for electricity exported to the National Grid.