What is the Smart Export Guarantee (SEG)?
The SEG (Smart Export guarantee) is a Government backed initiative that ensures people that generate their own electricity through small scale renewable energy generators get paid for energy they give back to the national grid.
Energy providers that hold an SEG license, must pay SEG Generators for their low-carbon energy contributions. These new export tariffs are meant to encourage customers to install renewable energy sources within their home such as solar panels.
How does the SEG work?
Under the SEG, you will be paid for every unit of electricity that you feed back to the grid when you sign up to an energy provider that holds an SEG licence and offers an SEG tariff. The energy provider will calculate how much energy you are exporting to the grid through meter readings.
What Do I Need to Qualify for the SEG?
The SEG provides export tariffs for small-scale, low-carbon energy generation technologies such as:
How much do I get paid from the SEG?
The amount you'll be paid for selling power back to the grid through the SEG will vary depending on the energy provider and tariff you choose; the SEG scheme allows energy providers to choose their own fixed rates.
All SEG energy suppliers offer an export tariff for customers with a different energy supplier for their electricity, for example if your energy is supplied through British Gas, you can still sign up to Octopus Energy for their export tariff. But, energy suppliers will usually offer a better rate for export for their exiting customers. The graph below shows currently the best SEG tariffs in 2024.
You can be paid between 3p - 16.5p per kWh depending on which energy provider you chose to export with and if you’re already an existing customer. It’s best to keep up to date with energy providers to check deals and contract length, the highest rate doesn't guarantee the most beneficial energy package, shop around!
2024 SEG Tariff Suppliers
What are the types of SEG tariffs?
Fixed rate SEG tariffs
Fixed rate SEG tariffs mean that you will be paid the same rate per kilowatt of energy you export back to the grid.
Flexible rate SEG tariffs
Flexible rate SEG tariffs pay different rates depending on what time of the day you export your energy. For example, the energy you feed back to the grid within ‘peak hours’ is likely to be more valuable as it is more in demand.
Multi-rate SEG tariffs
Like a flexible tariff, what you'll pay depends on when you're exporting the electricity, but like a fixed tariff these fluctuations are tied to specific fixed amounts. For example, what rate an energy supplier might pay on weekdays may differ from their rate on weekends.
How does the SEG work with Solar Panels?
Installing solar panels is one of the most popular and easy ways of generating your own renewable energy and benefitting from the SEG.
To benefit from the SEG with Solar, you will need to have a MCS certificate which can only be provided by certified MCS installers. If you have moved into a property that already has solar panels fitted and you do not have the MCS certificate, contact the MCS Helpdesk on 0333 103 8130.
Your solar panel system will also need to be less than 50kW which is common amongst residential solar PV systems.
How do I apply and what documents do I need to apply for the SEG?
Once you’ve decided which company offer the best tariff for you, the application process is quite simple, usually your chosen energy supplier will walk you through the steps on their website.
To start your application you will need:
Proof of installation – This can be a letter from your installer or a paid invoice.
MCS Certificate (Microgeneration Certification Scheme) – Your MCS Certificate should be provided by your MCS certified installer after your system had been installed. You will only have an MCS certificate if your system was installed by a MCS certified installer. Click here to learn more about the MCS.
DNO approval or G99 – This should be provided to you by your installer during your installation or during the hand over process after your installation has been completed.
Smart meters are recommended for people applying for SEG as they provide more precise readings of exported energy. Some SEG smart tariff companies may require you to have a smart meter installed to be eligible to apply.
What is a G99?
G99 sets out the requirements for the connection of renewable energy systems, such as solar PV, to the electricity network in the UK. It covers technical standards and guidelines to ensure safe and efficient grid connections for renewable energy sources. If you are planning to install a solar PV system in the UK, compliance with G99 would be essential to ensure your system meets the necessary requirements for connection to the grid.
What is a smart meter & how do they work?
A smart meter is an advanced electricity or gas meter that measures and records how much energy you use every hour or less and sends this data back to your utility company.
These meters work by using two-way communication technology to send usage data wirelessly to the utility company, eliminating the need for manual readings. This allows for more accurate and efficient billing, helps consumers track their energy usage more effectively, and enables utility companies to better manage their grid by identifying peak usage times and potential outages more quickly.
What is a smart energy tariff?
A smart energy tariff is a type of electricity pricing plan that uses smart meter technology to offer you more flexibility and control over your energy costs. These tariffs typically involve variable pricing based on the time of day, demand on the grid, or other factors.
For example, a flexible tariff might charge different rates for electricity depending on the time of day, with higher rates during peak hours when demand is high and lower rates during off-peak times. This encourages consumers to shift their energy usage to off-peak hours when electricity is cheaper, helping to balance demand on the grid.
How do I become a SEG generator?
Are you looking to become an SEG generator? At The Skill Group, we are certified MCS solar panel installers in Essex and are happy to help you with your SEG generator journey. To find out more about how you can benefit from a solar installation and the Smart Export Guarantee enquire below or give us a call!