The Smart Export Guarantee is the new support mechanism designed to ensure small-scale generators are paid for the renewable electricity they export to the National Grid. It has been in place since 1 January 2020. You may be eligible to apply if you have one of the below renewable energy generating technologies:
- solar PV panels,
- a wind turbine
- hydro
- anaerobic digestion
- micro combined heat and power.
Following the closure of the Feed-in Tariff scheme to new applicants in March 2019, the government recognised the need to pay small-scale renewable energy generators for the electricity they export to the grid. So the Department for Business, Energy and Industrial Strategy (BEIS) introduced the Smart Export Guarantee (SEG).
The Smart Export Guarantee came into force on 1 January 2020.
What is the difference between the Smart Export Guarantee and feed-in tariff? The FIT paid households that produced their own electricity using renewable technologies. It closed to new applicants at the end of March 2019. If you receive the FIT, you get two payments: The SEG is one payment and is just for the electricity you export to the grid. SEG payments are based on the measured amount of electricity exported to the grid. FIT payments were ‘deemed’ or estimated to be 50% of the total electricity generated. The payment rates for the FIT were set by Ofgem and the government and were the same regardless of which supplier paid you. SEG tariff rates are set by the companies which offer them. The FIT was paid for by a levy on all customers’ energy bills. The SEG is paid by energy companies who buy the power. https://www.which.co.uk/reviews/solar-panels/article/smart-export-guarantee-explained#difference
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