Did you know that with solar panels you can make money using a Smart Export Guarantee?
Under the Smart Export Guarantee (SEG) you can export renewable energy to the National Grid and get paid for this electricity from energy suppliers. If you have a solar PV system and generate more power than you need, this is a great way to get paid for that surplus power. This scheme replaced the Feed-in Tariff in 2020 and has helped solar customers earn extra from their solar arrays.
Want to see how much you can earn from the Smart Export Guarantee? We’re talking you through all there is to know about this government-backed initiative.
What is the Smart Export Guarantee (SEG)?
The Smart Export Guarantee replaced the Feed-in Tariff in 2020. Big energy companies must participate and offer tariffs under the Smart Export Guarantee. Though it’s not required for smaller energy companies to do this, some do offer SEG tariffs.
How do I sign up for an SEG tariff?
You will need to sign up for a Smart Export Guarantee through a participating energy supplier. You’ll then get paid for surplus renewable energy you export back to the grid and payment will be made for every unit of electricity fed back from your solar panels. Without an SEG tariff, you won’t get paid for the electricity you export to the National Grid.
Unlike the Feed-in-Tariff (that closed to new applicants in March 2019), you won’t get paid for the electricity your solar panels generate and that you export back. The Smart Export Guarantee only pays you for the excess electricity you put back into the National Grid.
How much will I earn with a Smart Export Guarantee?
The savings will vary for each household depending on how much electricity they export back to the grid and the tariff they opt for. Companies set their own SEG prices, and there can be a big difference between payment tariffs. So, you’ll need to research tariffs that work best for you. As a rule, your SEG tariff must not be below zero. You can also opt to choose a different supplier to sell your electricity to than the one you buy from.
It’s also worth knowing that different SEG tariffs have rules around whether you’ll be paid for electricity stored in a battery. Always check the tariff details before signing up.
Types of SEG Tariffs
There are two tariff types: flat rate and variable. Flat rate tariffs pay the same price per unit of electricity at any time of day. Variable rates pay more for electricity exported in the evening. Variable rates are generally attractive tariffs to those who have a storage battery.
Am I eligible for the Smart Export Guarantee tariff?
If you install solar panels and meet the criteria below, then yes you will be eligible for a Smart Export Guarantee:
- Your installation is 5MW capacity or less (50kW for micro-CHP).
- A meter that can provide half-hourly readings for electricity export.
- Your installation is MCS-certified.
Are Smart Export Guarantee tariffs worth it?
Installing solar panels and combining this with an SEG tariff will help save you money. Depending on how much you export to the grid will depend on how much you can earn, but it’s still worth signing up for an SEG tariff so you can get paid for any surplus electricity.
If you’re currently on a FIT tariff, this is the only time it’s generally not worth signing up for an SEG tariff. The rates for FIT were much higher and were fixed for up to 25 years.
Interested in Solar Panels?
Contact our team to discuss how you can add solar panels to your home. As fully MCS accredited installers we can tailor packages to suit your needs. Start your solar journey today to generate cleaner electricity and save on energy bills.