The smart export guarantee (SEG) is an obligation set by the government for licensed electricity suppliers to offer a tariff and make payment to small-scale low-carbon generators for electricity exported to the National Grid, providing certain criteria are met.
The SEG comes into force on 1 January 2020.
Who’s the SEG for?
The SEG is an opportunity for anyone who has installed one of the following technology types up to a capacity of 5MW, or up to 50kW for Micro-CHP:
- Solar photovoltaic (solar PV)
- Micro combined heat and power (CHP)
- Anaerobic digestion (AD)
These installations must be located in Great Britain.
How does the SEG work?
The SEG Licensee is required to put processes in place to pay for the electricity exported by the eligible installation and to report to Ofgem on installations under the SEG arrangements.SEG Licensees determine the rate they will pay, contract length and other terms.
However, whilst wholesale electricity prices can sometimes fall below zero, SEG Licensees must always offer a tariff that remains above zero. SEG payments must be calculated by SEG Licensees using Export Meter Readings.
Visit our page for generators if you are thinking of applying for the SEG.
If you are an electricity supplier, visit our electricity suppliers page. Other guidance is provided below.