Smart Export Guarantee (SEG) Tariffs
There are several fixed tariffs and variable tariffs currently available for generators wishing to earn money for their exported electricity. No one tariff will be right for everyone and so it is important to do your homework and make sure you understand the differences between each offering.
We have put together some information on the tariffs on offer from the energy providers who accept Flexi-Orb certificates. There are other tariffs available however, you would not currently be able to claim these with a Flexi-Orb certificate.
We would advise you to read carefully the terms and conditions of any considered tariffs before signing up.
You are only eligible to receive SEG if you are not already receiving FIT export payments or payments from another export tariff.
In order to qualify for the Smart Export Guarantee you must satisfy the following requirements:
Technology
You must have a solar PV, wind, hydro or anaerobic digestion installation with a capacity of up to 5MW; or a micro-CHP installation with a capacity of up to 50kW.
The installation must be located in Great Britain and you will need to provide evidence of appropriate certification in order to apply.
Metering
You must have a export meter installed where the installation connects to the grid. That meter should be capable of recording the exported energy at half-hourly intervals, however, some providers may accept manual meter readings.
Export MPAN
An MPAN is a reference number that identifies all electricity connection points the country. You will probably already have an import MPAN but this will be different to your export MPAN and you will need to request this from your SEG provider.
The SEG suppliers determine the tariff per kWh for remuneration and the length of contract. Exported power must be metered, with a meter capable of reporting exports on a half-hourly basis, and meters must also be registered for settlement – though the SEG design is flexible and does not necessarily require half-hourly readings.
SEG providers are able to choose from the different tariff designs below:
- Fixed tariffs
Suppliers offering a fixed rate tariff will pay a set amount per kWh no matter whether you export during the day or at night. - Export metered and registered for settlement only
Suppliers offer an above-zero export tariff to all small-scale generators who agree to metered and settled export. This could be a non-variable flat rate tariff.
- Simple variable tariff
Suppliers offer a simple ‘variable’ export tariff. Interpretation as to variability (e.g. day/night or weekday/weekend) and tariff rates would be up to the supplier. Must also be metered and settled. - Advanced variable tariff
Suppliers offer a ‘variable’ export tariff, to reflect energy system conditions on up to a half-hourly basis. The interpretation of tariff rates would be up to the supplier. Must also be metered and settled. - Variable tariff linked to market
As the advanced variable tariff, plus suppliers’ ‘link’ their variable tariff to the market. The interpretation could be up to the supplier but there would be an expectation that there should be a rise and fall linked with half-hourly market (e.g. day-ahead wholesale) prices. - Variable tariff benchmarked to market
As the advanced variable tariff, plus suppliers benchmark their variable tariff to half-hourly market prices. The level of the tariff would be determined by the supplier but rising and falling in proportion to the market price. Must also be metered and settled.
To apply for a SEG export tariff you will need to submit an application to a participating energy provider.
You will need to provide the following information:
1. Evidence of certification
- For solar PV, wind or micro-CHP installations up to 50kW
You will need to provide evidence that both your installation and your installer have appropriate certification. - For solar PV, wind or micro-CHP installations from 50kW – 5MW
You will need to provide evidence that your installation has appropriate certification. - For anaerobic digestion and hydro installations up to 5MW
You will need to provide evidence that your installation has appropriate certification.
- For solar PV, wind or micro-CHP installations up to 50kW
2. Confirmation of current export payments
Receiving payments from more than one export tariff at a time is prohibited and you will be required to confirm whether or not you are currently receiving FIT export payments or payments from another SEG export tariff.
There are many factors to consider when trying to understand the amount you could earn from an export tariff, including:
- Tariff rates – Energy providers are currently offering rates from 1.5p per kWh to 7.5p per kWh, see below for details of available tariffs.
- The amount of electricity you can generate
- The amount of electricity you use
- The amount of electricity you export
- The time of day you export (if applicable)
- Whether you store electricity in a battery
To help evaluate the possible financial benefits for you please check out the Solar Panel & Battery Storage calculator on the Great Homes website.
Tariffs are set by SEG providers. Required to provide at least one export tariff, SEG providers are free to provide more tariff options for generators to choose from. They are also able to make appropriate discounts in the setting of the tariffs for any administration costs.
The remuneration must be greater than zero and at times of negative pricing, generators must not be required to remunerate suppliers for electricity exported to the grid.
Smaller suppliers also have the possibility to provide a SEG tariff but must adhere to the rules and guidelines associated with SEG.
No, you cannot receive more than one SEG export tariff at at time, nor can you be receiving FIT export payments.
Although energy providers are not required to include battery storage in their export tariffs, many do offer the ability for you to earn money from electricity you export from your energy storage device, however the restrictions on the type of electricity you can export may vary from provider to provider.
Green energy
This refers to energy generated from your solar panels and all providers who include battery storage will pay for green energy.
Brown energy
This refers to energy you draw from the grid. Some providers will not pay for this type of energy and may ask for evidence that the generation circuit being measured by the export meter is unrelated to the battery storage, to ensure no payment is issued for this type of energy.
Any complaints should first be directed to your SEG provider. If a resolution has not been reached after 8 weeks you may refer your complaint to the Energy Ombudsman.
For more information about making a complaint about an energy provider please visit the Ofgem website.
