What is the Smart Export Guarantee Scheme?
The Smart Export Guarantee (SEG) is a Government-backed scheme which enables UK households to generate and export renewable electricity to the national grid and receive payments for doing so. The scheme was launched in April 2020, in an effort to increase the amount of renewable electricity available in the UK, and has been extended until at least 2028.
SEG enables people to generate electricity from renewable sources such as solar, wind and hydro, and then sell it back to the grid. In return, they will receive financial payments based on the amount of electricity generated. This is seen as a great way to decrease energy bills, as well as support the move to more renewable forms of energy.
Advantages and requirements of selling electricity back to the grid
Selling electricity back to the grid offers numerous advantages, including lower energy bills and financial incentives. It also has the potential to reduce our reliance on fossil fuels. Additionally, selling electricity back to the grid is fairly straightforward, as households only need to install a suitable renewable energy project, such as a solar PV system, wind turbine or hydro generator, and then register with the SEG.
To be eligible for the SEG scheme, households must meet certain requirements. These include:
• Owning a renewable energy system capable of generating and exporting electricity to the grid
• Providing a valid meter that allows accurate readings of electricity generated
• Ensuring that the electricity generated is exported to the grid, not consumed in the home
• Meeting current health and safety guidelines
What type of renewable electricity can be sold back to the grid?
SEG payments are available for most renewable electricity sources, including solar, wind and hydro. Alternatively, some SEG suppliers may also offer payments for other emerging technologies, such as battery storage and electric vehicle charging.
Calculating the rate of payment for energy exported
The amount of money that households will receive for the energy they generate and export will vary between suppliers. Most suppliers use a p/kWh rate for payments, for example £0.03/kWh. This means that for every kWh (kilowatt hour) of renewable energy generated, households will receive £0.03 in return.
However, not all suppliers will offer the same rate. Some suppliers may offer a tariff with an additional ‘price per kW’ charge. This is typically used to cover additional costs related to supporting consumers and the grid.
Is there an upper limit on the amount of energy that can be sold back to the grid?
Yes, there is an upper limit on the amount of energy that can be sold back to the grid under the SEG scheme. This limit is known as the De-Minimis state aid limit, and is currently set at 10 MW. This limit is intended to ensure that the scheme is used to benefit consumers and the wider grid, rather than large energy producers.
How to register with the Smart Export Guarantee Scheme
To register with the SEG scheme, households must first find a suitable SEG supplier. There are numerous SEG suppliers available, each offering a range of tariffs, so it’s important to compare options and select the most suitable.
Before registering, households should have a valid meter installed and be aware of the amount of renewable energy that is being generated and exported. This information is required for accurate payments.
Alternative methods for selling electricity back to the grid
In addition to the SEG scheme, households can also opt to sell their electricity back to the grid in a number of other ways. These include:
• Feed-in Tariffs (FITs) – This is a Government-backed payment that households receive for the electricity they generate through renewable energy systems, such as solar.
• Export Tariffs – This is where households receive payments for the excess electricity they export to the grid through renewable energy sources, such as wind or solar.
• Self-consumption – This is where households store excess energy in batteries for future use. Any energy not used can be sold back to the grid.
Can I sell electricity back to the grid?
The answer is yes. With the introduction of the Smart Export Guarantee, households can now generate and export renewable electricity to the grid and receive payments for doing so. However, it’s important to ensure that all requirements are met, such as having a valid meter installed and adhering to current health and safety guidelines. Furthermore, households should compare offers from different SEG suppliers, as this can help to identify the most suited tariff. Alternative methods for selling electricity back to the grid are also available, such as FITs, export tariffs and self-consumption.