The old Feed- In tarriff is now being replaced with the Smart Export Guarantee or SEG for short.
The Smart Export Guarantee is the proposed new mechanism to pay people for excess electricity that they export to the national grid. Anyone with solar PV panels whose system is linked to the grid will export the energy they don’t use.
How the SEG will work
The Smart Export Guarantee is a requirement for electricity suppliers to put in new tariffs in place that will power new, innovative payment arrangement for people exporting clean electricity to the grid.
Tariffs will vary between electricity suppliers, so people exporting solar to the grid would need to find the best deal much as they do now with their imported electricity. Part of the aim is that energy suppliers will develop tariffs to provide more innovative solutions, for example, tariffs that suit particular types of generation or that work for users with electric vehicles (EV’s) or battery storage or those that work for consumers who can shift their demand to different times during the day.
As the flow of electricity exporting back to the grid needs to be accurately measured a smart SMETS2 type meter will need to be fitted. This will be done for free by your chosen electricity supplier. If you already have a smart SMETS2 meter there will be no need to change it.
Early SEG tariff providers
One energy supplier, Octopus, has already introduced a Smart Export Tariff. The Octopus offer is called ‘Outgoing Octopus’ and payments can be made either on the basis of a fixed 5.5p per kilowatt-hour of exported electricity or on an ‘Agile’ tariff where payments vary according to the time of the export.