THE SMART EXPORT GUARANTEE PAYMENTS
(SEG) 1st January 2020
Subject to parliamentary approval, the Smart Export Guarantee (SEG) was passed into law. It will guarantee that people installing new solar panels at their home or business will receive a payment for exporting electricity to the grid at around 5.5p per kWh. Energy suppliers with over 150,000 customers will be obliged to offer an export tariff to small-scale electricity generators (homes and small businesses) for each unit of electricity they sell to the grid, as measured by their smart meter.
Energy suppliers with more than 150,000 customers must offer a minimum of one export tariff each. The tariffs will probably be relatively straightforward initially but as the technology develops, we may see more complex tariffs designed to motivate small-scale generators to store electricity and sell it into the grid at different rates depending on the relative level of demand.
Energy suppliers will pay for electricity exported to the grid based on readings taken from a suitable meter such as a smart meter. This underlines once again, the importance of the smart meter roll out programme. Meters must be capable of providing export readings every half an hour, even if the tariff is not paid on a half hourly basis. It may be that some energy suppliers will allow for manual meter readings of the cumulative amount of power exported on a monthly basis but, clearly, a wider range of tariffs are going to be available for those who supply half hourly readings.