If you are considering installing solar PV panels to your home or business, or have already, you could earn money through the Smart Export Guarantee (SEG) scheme.
What is the Smart Export Guarantee Scheme?
The Smart Export Guarantee (SEG) scheme was introduced in January 2020 to replace the previous Feed-in-Tariff (FIT) scheme. The new scheme allows small scale generators to export surplus electricity back to the grid.
All Energy companies with 150,000 or more customers must provide at least one SEG tariff for their customers. These can vary widely, so it is worth shopping around to decide which rate is best for your property. Ofgem provide a list on their website of the current providers that offer an SEG tariff for low-carbon electricity generators.
How does it work?
You will need to apply directly to your chosen provider for the SEG tariff that is right for you. To be eligible for the SEG scheme, your installation must be carried out by an MCS (Microgeneration Certification Scheme) certified installer. The energy supplier that you select your SEG tariff with will ask you to provide the MCS certificate to prove that your renewable energy meets the required standard. They will also ask for a copy of your electricity bill and a photo of your smart export meter reading.
If you have a storage device, it is worth checking the rules of the SEG tariff you intend to apply for. Each supplier has different criteria, however if your battery stores electricity from the grid (brown electricity), you will need to check how your chosen provider covers this. Some suppliers only pay the SEG for green electricity generated via the solar PV Panels.
How much could I earn?
As of October 2022, the best SEG tariff rate is 15p per kWh for existing Octopus customers. If you are looking to export only, the rate is considerably lower at 4.1p per kWh. Tesla offer an outstanding rate of 24p per kWh, but you will need to own a Powerwall 2 battery to qualify. The amount you earn will depend largely on the size of the solar system you install and how much of the self-generated energy you consume yourselves. Based on a 3-bed property, you could expect to earn around £73 a year.
If you haven’t already installed solar panels to your property, make sure you get in touch with our team of experts for a free quotation. Already got solar installed? Check first that you are not signed up to the previous FIT scheme, as you cannot receive money from both. If you want to switch to the SEG scheme, you can, but we would recommend checking rates before making the move. If you have not signed up for either scheme, check you have a MCS certificate for your installation before applying through your chosen energy provider.