Smart Export Guarantee (SEG)

SEG is designed to provide small scale generators (e.g. consumers) with a mechanism to receive payment for electricity they feed back into the grid. With the closure of the Feed-in Tariff (FITs) it was important that consumers were receiving a monetary value for the exported electricity. Flexi-Orb is working with a selected number of energy providers to help deliver SEG to consumers in a safe and controlled manner.

Installer Tools

Installer benefits
of joining Flexi-Orb

  • Free to join, free to register your customers’ installations and no annual fees
  • Access to export tariffs – via our supporting Energy Suppliers
  • Access to finance lenders to help you gain consumer funding
  • G98 DNO notification facility, saving you admin time
  • Customers registered with Flexi-Orb receive a Certificate to access our services
  • Honest and genuine reviews left by your customers 
  • + many more benefits

Consumer benefits
of using Flexi-Orb member

  • Installers are vetted before becoming a Flexi-Orb member
  • Once your installation has been registered with Flexi-Orb you receive a Certificate to access our services
  • We monitor our member’s customer satisfaction rating
  • We monitor our member’s sales practices (including savings quoted)
  • We ask insurer to verify you have an Insurance Backed Guarantee (where indicated by the installer)
  • Free access to alternative dispute resolution in the event of a complaint
  • + many more benefits

What is the Smart Export Guarantee?

SEG is a scheme legislated by the Government for energy suppliers to pay consumers for the electricity they export to the grid. SEG came into force on 1 January 2020.

What type of small-scale low-carbon systems are eligible?

SEG is available to the small-scale low-carbon generators which were eligible for the Feed-In-Tariff (FITs) scheme including:

  • anaerobic digestion
  • hydro
  • micro-combined heat and power (with an electrical capacity of up to 50KW)
  • onshore wind
  • solar photovoltaics

What is the maximum system capacity?

The maximum system capacity eligible for the Smart Export Guarantee is up to 5MW, this is eligible to low-carbon systems installed on your property. 

Who will set the tariff rates?

Tariffs are set by SEG providers (see below for SEG provider explanation). 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 guidance associated with SEG.

The tariff structure

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 to the right:

SEG providers are able to choose from the different tariff designs below:

A) Fixed rate tariff

  

Suppliers offering a fixed rate tariff will pay a set amount per kWh no matter whether you export during the day or at night.

B) 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.

C) 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.

D) 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.

E) Variable tariff linked to market

  

As option D, 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.

F) Variable tariff benchmarked to market

  

As option D, 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.

What tariffs are available?

There are several export tariffs currently available – to see details please click the button below to go to our dedicated SEG tariff page.

View available SEG tariffs

Will I receive payments from electricity exported from storage?

If you have a storage device then you could also receive SEG payments from electricity exported from the storage device and/or non-renewable generating equipment co-located with a SEG technology. You will need to check with the SEG provider if they will pay you for electricity exported from storage.

Will my existing renewable energy system qualify?

If you have a system registered for the FITs scheme and is generating electricity, then you will have the option to opt out of receiving FIT export payments and choose to receive export payments under SEG.

Who regulates SEG?

Under the SEG, Government will legislate for suppliers to remunerate small-scale low-carbon generators for the electricity they export to the grid. Ofgem will be monitoring suppliers to prevent fraud and make sure consumer protection standards are met.

Key Stakeholders & Regulatory Bodies

BEIS

BEIS is the Government department for Business, Energy & Industrial Strategy that will oversee legislating the SEG.  BEIS would also conduct an evaluation process to estimate whether small-scale low-carbon generators are able to effectively sell exported electricity to the Grid. The evaluation process proposed under the SEG would be for BEIS to use the information gathered by Ofgem as part of their yearly report.

OFGEM

Ofgem will oversee monitoring suppliers, prevent fraud and make sure consumer protection standards are met.  This may include:

  • Monitoring and enforcement of the supplier obligations, including ensuring mandated SEG suppliers provide a SEG tariff to eligible generators;
  • Assessing the sustainability criteria and feedstock restrictions reporting requirements applicable to AD installations, as per the FIT scheme;
  • Imposing a penalty where a Licensed Electricity Supplier has contravened;
  • Issuing orders bring an end to a breach or remedy harm that was caused;
  • Reporting on activity under SEGs, including supplier’s compliance with their obligations under SEG, deployment and payments made to generators.

SEG Providers

There are be two types of SEG providers:

  • Mandatory SEG providers: electricity suppliers who have at least 150,000 domestic electricity customers. They will be obligated to register and make SEG payments to eligible generators.
  • Voluntary SEG providers: electricity suppliers with fewer than 150,000 domestic customers can still be a SEG provider. These suppliers will be required to register and make SEG payments to eligible generators during the SEG year in which they enter.

Under the SEG, both mandatory and voluntary SEG providers will undertake the following duties:

  • Share publicly their status as a SEG provider and notify Ofgem of their status and any changes;
  • Assessment of a generator’s eligibility for the SEG and responsibility to verify a generator’s ongoing eligibility;
  • Make SEG payments to eligible generators based on verified export meter readings;
  • Carry out counter fraud activity to ensure only eligible generators participate in and benefit from the SEG by taking reasonable steps to reduce error and combat abuse, with appropriate reporting of suspected fraud to Ofgem;
  • Handle and resolve complaints raised by generators and where these complaints are passed to the Energy Ombudsman;
  • Provide Ofgem with data required for the publication of annual reports.

SEG in Northern Ireland

Northern Ireland hasn’t been discussed in the SEG yet.

Get in touch

E: info@flexi-orb.com

Centurion House
Leyland Business Park
Centurion Way
Farington
Leyland
PR25 3GR