Renewable Electriicity and Smart Export Guarantee
The Smart Export Guarantee (SEG) pays customers for renewable electricity they have generated and put into the grid. It replaces the Feed-in Tariff (FIT) scheme, which pays many solar panel owners for the electricity they generate at home. Big energy companies, with more than 150,000 customers, have had to participate in the SEG since the beginning of 2020.
The electricity can be produced from the following renewable technologies:
- Solar panels (PV)
- Micro combined heat and power
Customers have to sign up to a SEG Tariff with an energy company in order to get paid for the electricity you have generated. The energy companies set their own SEG Tariff prices with prices ranging from 1p/kwh to 5.5p/kwh so it is worth comparing SEG tariffs. If you already have or are planning to intall a home storage battery there are battery storage specific tariffs that may pay higher rates.
Unlike the FIT scheme SEG only pays for the excess electricity generated that gets put into the grid rather than all the electricity generated. As a result it is not as generous as the FIT scheme.
Installing renewable generation technology such as solar PV and signing up to an SEG tariff will help you use more renewable electricity and should help you save money on it in the long term as you will be buying less electricity from the grid.