Overview

The Smart Export Guarantee (SEG) was introduced on 1 January 2020 as the replacement for the former Feed-in Tariff (FiT) scheme. The initiative encourages homeowners and small businesses across Great Britain to generate renewable, low-carbon electricity through technologies such as solar panels and export unused energy back to the National Grid. Under the SEG scheme, licensed electricity providers, known as SEG Licensees, pay eligible households and businesses, referred to as SEG Generators, for the surplus electricity they export. The SEG helps support renewable energy adoption while allowing consumers to earn money from excess solar power generation.

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Who Can Apply for the Smart Export Guarantee (SEG)?

The Smart Export Guarantee (SEG) scheme is available to homeowners, landlords, community energy groups, and small businesses in Great Britain that generate renewable electricity through eligible low-carbon technologies. To qualify, installations must have a capacity of up to 5MW, or up to 50kW for micro combined heat and power (micro-CHP) systems.

Eligible renewable energy technologies include:

  • Solar photovoltaic (solar PV) panels
  • Wind turbines
  • Micro combined heat and power (micro-CHP)
  • Hydroelectric systems
  • Anaerobic digestion (AD) systems

To receive SEG payments, the installation must be located in Great Britain and meet all relevant technical and eligibility requirements set by the scheme and participating electricity suppliers.

How Does the Smart Export Guarantee (SEG) Work

Under the Smart Export Guarantee (SEG) scheme, licensed electricity suppliers, known as SEG Licensees, set their own export tariff rates, contract terms, and payment conditions for customers exporting renewable electricity back to the grid. While rates vary between suppliers, all SEG tariffs must offer payments above zero for exported electricity.

SEG payments are calculated using readings from an approved export meter or smart meter, which records the amount of surplus electricity sent back to the National Grid. Eligible households and businesses, known as SEG Generators, receive payments from their chosen supplier for the renewable energy they export.

Because tariff rates and contract terms differ between providers, generators are encouraged to compare SEG suppliers to find the best deal for their energy usage and export levels. Applicants should also review the eligibility requirements and application process before signing up to a tariff.