About the Smart Export Guarantee (SEG)
The SEG launched on 1 January 2020 and is a government-backed initiative. The SEG requires some electricity suppliers (SEG Licensees) to pay small-scale generators (SEG Generators) for low-carbon electricity which they export back to the National Grid, providing certain criteria are met.
Who can be a SEG Generator?
Anyone with one of the following technology types could benefit from the SEG (provided they meet the rest of the eligibility criteria) up to a capacity of 5MW, or up to 50kW for micro-CHP:
- Solar photovoltaic (solar PV)
- Micro combined heat and power (micro-CHP)
- Anaerobic digestion (AD)
These installations must be located in Great Britain.
How does the SEG work?
SEG Licensees determine the rate which they will pay SEG Generators, the contract length and other terms. Generators thinking of applying for a SEG tariff should therefore shop around to see which tariff is best for their individual circumstances.
SEG tariff rates must always be above zero. SEG payments are calculated by using export meter readings. SEG Generators are paid by their chosen SEG Licensee for the electricity which they export back to the National Grid.