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The Smart Export Guarantee (SEG) was set up by the UK government to encourage small-scale renewable energy generation systems being installed by homeowners and businesses for any electricity they export to the national grid. The Smart Export Guarantee payments were first introduced in January 2020; the scheme was designed to help replace the Feed-in Tariff (FiT), which was the previous scheme for renewable such as solar panels. SEG plays a vital role in pushing renewable energy across the UK as it allows homeowners to earn an income from any excess energy their renewable system generates.
What Is the Smart Export Guarantee?
The Smart Export Guarantee was established by the UK government to help reward homeowners and business owners that generate renewable energy by allowing them to be paid for anything that is sent back into the national grid. This applies to a wide range of products on the market but is mostly recognised for the big impact it has had on helping push solar panels after the Feed-in Tariff ended in 2018.
Under the SEG all energy suppliers with more than 150,000 customers are required by law to offer SEG payments to any customer with renewable generation technology such as solar panels. However, suppliers are not required to offer a certain amount so the price can vary massively depending on your chosen supplier.
What Products Qualify for Smart Export Guarantee?
Solar Panels (PV)
Wind Turbines
Hydroelectric Systems
Anaerobic digestion plants (biogas)
Micro-combined heat and power systems (Micro-CHP)
Eligibility for The Smart Export Guarantee
To qualify for The Smart Export Guarantee, you must not only have the right product, but it must first meet the requirements of certain other criteria.
Capacity Limit – SEG payments can only be applied to a system with a maximum capacity of 5 megawatts (MW) and 50 kilowatts (kW) for micro-CHP
MCS Certification – The renewable energy system must also have been installed by a certified installer under the Microgeneration Certification Scheme, also known as the MCS.
Smart Meter – The premises must be monitored by an adequate smart meter to be able to receive SEG payments.
DNO Application – The system must also have been registered correctly with the correct Distribution Network Operator also known as the DNO application. This means the system must be registered and approved by the national grid provider.
How Does the Smart Export Guarantee Work?
The Smart Export Guarantee works on a simple premise that any small-scale renewable generating systems like solar panels can sell their unused electricity back to the national grid. Here is how the SEG payments work in practice:
Installation of Renewable Energy System – Homeowners or business must first install a renewable energy generation system the most common of these are solar panels and wind turbines.
Smart Meter Installation – To be able to receive SEG payments the renewable energy system must also be able to be monitored by an Ofgem-approves smart meter. Most suppliers in modern days offer smart meters as part of their service.
Exported Electricity – The smart meter will monitor how much surplus electricity you have sent back to the national grid and your energy supplier will pay you accordingly.
These payments can be paid monthly or quarterly depending on your agreement.
Top 10 Smart Export Guarantee Providers (SEG)
Octopus Energy – Up to 29.4p
OVO – Up to 20p
EDF – Up to 20p
So Energy – Up to 20p
E-ON – Up to 16.5p
Scottish Power – Up to 15p
British Gas – Up to 15p
Good Energy – Up to 15p
Rebel Energy – Up to 10p
Utility Warehouse – Up to 5.6p
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