Understanding the Smart Export Guarantee (SEG) scheme and the Feed-in Tariff (FIT)

Thinking about solar panels? You’re not just saving on energy bills; you could also be earning money! The Smart Export Guarantee (SEG) is a government-backed scheme designed to reward homeowners and businesses who generate their own renewable electricity.

Let’s break down how it works and how you can benefit.

What is the Smart Export Guarantee (SEG)?

The SEG is a UK initiative that requires licensed electricity suppliers to pay you for any surplus renewable electricity you export back to the national grid. This means that when your solar panels generate more power than you use, you can sell the excess and earn an extra income.

Key Points to Understand:

• Eligibility:
  • Your renewable energy system (typically solar PV, but also wind, hydro, or anaerobic digestion) must have a capacity of 5MW or less.
  • It must be certified by the Microgeneration Certification Scheme (MCS).
  • You’ll need a smart meter capable of providing accurate export readings.
• How it Works:
  • You choose an SEG tariff from a licensed electricity supplier.
  • Your smart meter tracks the amount of electricity you export.
  • Your supplier pays you for the exported electricity based on the agreed-upon tariff.
• SEG Tariffs:
  • Tariffs vary between suppliers, so it’s essential to compare rates and terms.
  • Some suppliers offer fixed tariffs, while others offer variable tariffs.
  • Tariffs are paid per kWh exported.

Benefits of the SEG:

• Earn Extra Income:
  • Generate revenue by exporting your surplus solar energy.
  • Help offset the initial cost of your solar panel installation.
• Contribute to a Greener Grid:
  • Support the transition to renewable energy by supplying clean electricity to the grid.
  • Increase your own energy independence.

How to Get Started:

1. Install an MCS-Certified System:
   • Ensure your solar panels are installed by an MCS-certified installer (such as LCM).
2. Get a Smart Meter:
   • If you don’t already have one, contact your energy supplier to arrange for a smart meter installation – give us a call if you need a quote.
3. Choose an SEG Supplier:
   • Compare SEG tariffs from different suppliers to find the best deal.
4. Apply for the SEG:
   • Contact your chosen supplier to apply for their SEG tariff.

Important Considerations:

• Tariff Variations:
  • Pay close attention to the terms and conditions of different SEG tariffs.
• Smart Meter Accuracy:
  • Ensure your smart meter is functioning correctly to provide accurate export readings.
• Contract Terms:
  • Understand the duration and terms of your SEG contract.

What is the Feed-in Tariff (FIT)?

FIT stands for Feed-in Tariff. It was a scheme introduced in 2010 where owners of renewable energy installations are paid for each unit of electricity they generate and for any extra units they don’t use by selling them to their energy supplier. However, the FiT scheme is closed to new applicants and was replaced by SEG in 2020.

By understanding the Smart Export Guarantee and the Feed-in Tariff, you can maximise the return on your solar panel investment and contribute to a more sustainable energy future.

Contact us today to begin your Solar journey – we are here for you every step of the way!

Give us a call at 0808 164 4570 or email us at hello@lcmenvironmental.com to book your free site visit!