On January 1st 2020 the Smart Export Guarantee (SEG) came into action providing small-scale renewable energy generators the ability to earn money from their excess energy. 

 

The scheme was developed by the Department of Business, Energy and Industrial Activity (BEOS) and arose following the termination of the Feed-In Tariff (FiT) back in March 2019. 

The SEG is eligible for solar PV owners whose systems generate up to 5MW. Other eligible candidate include owners of:

• on-shore wind, hydroelectricity and anaerobic digestion that are up to 5MW
• Micro-CHP (combined heat and power) up to 50kW

To be eligible for the SEG the renewable technology must have been/be installed by a certified Microgeneration Certificate Scheme (MCS).

 

What Companies Can I Choose From?

 

Many energy companies are engaging with the SEG. Examples of a few selected SEG providers include:

• E.ON
• Octopus Energy
• Scottish Power
• EDF Energy
• British Gas
• Social Energy
• Shell Energy

It is always worth looking around and comparing SEG providers in order to get the best deal.

 

What Tariff Options are Available?

 

For those eligible for the scheme, you have the option to choose between a variable or fixed tariff. Whilst there is no overall set minimum rate for the variable contact, providers must grant more than 0p per kWh of energy. 

Most tariffs range between 0.5p to 6p per kWh of exported electricity. So as you can imagine, you are not going to get rich from the SEG. 

However, if for example you exported 1,000kWh of your yearly generated electricity, you could earn £550 if you were on a fixed 5.5p contract in that year.

Whilst this is not a huge amount, it is still a great saving which would add up over the years. 

Since solar panels last for 25 – 30 years, you could earn £13,750 in 25 years (if we base our figure on the yearly £550). The combined yearly savings will have paid off the solar installation and enabled you to make a profit!

As with many tariffs, it can be a ‘risk’ choosing a variable contract since the rates can fluctuate. However, risks can sometimes pay off. Octopus Energy stated that those with 4kWp of solar alongside battery storage could earn 50% more on variable tariffs than those on a fixed tariff. 

 

Other Factors to Consider

 

• Not all SEG providers will pay for stored energy. If you have a battery storage system you will need to check with the provider to see if they will pay to export your stored supplies. 
• Homeowners must not receive the SEG from more than one supplier
• You may be entitled to further financial support such as the Home Energy Scotland Loan which is offered by the Energy Savings Trust, since the SEG is not linked to financial support in relation to renewable energy.

 

What if I am on the Feed-in Tariff (FiT)?

 

If you are still on the FiT you cannot apply to be on the SEG at the same time. However, you can decide to terminate the FiT and receive SEG payments instead.

For those who received the early FiT rates, the SEG does not offer the same monetary benefits. Although, for those disappointed by the rates, it should be noted the FiT was used as an incentive to make UK homeowners turn to renewable energy when solar systems were expensive to buy. Solar has reduced considerably in price since the beginning of the FiT and so the tariffs are lower in response. 

 For those who are still on the later rates of the FiT your earnings will be only marginally higher than those on the new SEG. 

 

About Wessex ECOEnergy

Based in Dorchester, Dorset, we are an award-winning eco-build, solar, battery, and electric vehicle charger installer with a great deal of experience in the domestic and commercial markets. We help our clients to reduce their impact on the environment and save money in the process.

 

If you are interested in generating your own solar energy contact Wessex ECOEnergy on:  01305 250429 

Or, send us an email at: info@wessexecoenergy.com