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The New Year marked the official start of the Smart Export Guarantee (SEG), finally replacing the Feed-In-Tariff where utility suppliers will now have to offer customer’s an export tariff for any power sent to the National Grid.

Since the end of the Feed-In-Tariff (FIT) on the 31st March 2019. The majority of installations of Solar PV systems would have seen any excess electricity sent to the grid for free, if they have not had a battery system in place. This changed when Octopus Energy introduced the UK’s first Export Tariff in May 2019 in advance of the SEG. However it left an uncomfortable gap in the Solar PV market.

The SEG tariff required utility companies that have more than 150,000 customers to have an export tariff in place by 1st January 2020. Small companies under the threshold can choose if they offer an export tariff.

Smart Export Guarantee Tariffs

We have put together a list of some of the key companies and their tariffs, as you can see the price per kWh varies considerably. However the SEG is due to start a price war between utility companies, when we see it, we’ll believe it. Until then we will keep tracking for key changes in the market.

Energy Supplier Tariff Price per kWh (Pence)
Social Energy Export 5.6
Octopus Energy Outgoing Fixed 5.5
Eon (New customers installing solar products after 1st Jan 2020.) Fix and Export Exclusive V1 5.5
Bulb Energy Export Payments 5.38
OVO OVO SEG Tariff 4.0
Scottish Power Smart Export Variable 4.0
SSE Smart Export Tariff 3.5
Eon (all other customers) Fix and Export V1 3.0
British Gas Export and Earn Flex 1.0
Shell Energy SEG Tariff 0.001

More tariffs will be announced from other utility companies and they must pay more than zero, however it is hoped that the price will fluctuate and become more competitive.

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What do you need to get an SEG tariff?

If you have installed solar panels, heat pumps, or other renewable generation at home in future, you should be able to sign-up to a SEG tariff.

To meet the criteria, you will need the following:

  • Your installation must be 5MW capacity or less
  • You’ll need a meter, providing 30 minutes readings for electricity export
  • Your installation must be MCS-certified

MCS certification involves choosing a product and using an installer that are approved by the microgeneration certification scheme (MCS). This is a quality-assurance scheme for renewable technologies, meaning that companies and product meet high standards.

Already got feed-in-tariff and thinking of switch to SEG? 

If you have already signed up to receive FIT payments, you will continue to do so for the remainder of your contract (usually around 20 years), as the SEG is aimed at new renewable technology owners.

The FIT rates were higher when the scheme first launched, which was a reflection of the cost of installing Solar PV at the time, since then the cost of installation has reduced significantly and that reduction in cost was reflected in the FIT prior to it ending, it’s unlikely that you will earn as much from a SEG tariff compared with your feed-in tariff, although it’s difficult to say while there are still so few SEG tariffs available. Whether Ofgem start to enforce the SEG is to be seen, we can only hope they do.

If you’re thinking about becoming energy independent this year then why not make a change today and install renewable microgeneration technology in your home or business and know that you are helping to reduce climate change, one home at time.

Make a change today, give our expert team a call today on 0808 222 0 111, or visit  www.herorenewables.co.uk for more information on generating your future.

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