Smart Export Guarantee (SEG)
The Smart Export Guarantee (SEG), introduced by the Government, came into effect on 1 January 2020, after the closure of the Feed-in Tariff (FiTs) scheme in 2019. This initiative is aimed at offering small-scale generators (such as consumers) a way to earn payments for the electricity they export back to the grid. GRC Solar can assist in achieving these benefits by providing expert guidance and solutions to help you maximise your eligibility and payments under the SEG scheme.
FAQs
Below are the questions we are most frequently asked about the Smart Export Guarantee (SEG) and GRC’s role in supporting renewable energy solutions. If you can’t find the information you need, please get in touch with GRC today.
What is the Smart Export Guarantee?
The Smart Export Guarantee (SEG) is a government-legislated scheme requiring energy suppliers to pay consumers for the electricity they export to the grid. The SEG came into effect on 1 January 2020, enabling small-scale generators to earn money for their contributions to the grid. GRC helps customers navigate the SEG process, ensuring they can maximise their export earnings.
What types of installations are eligible for SEG?
The SEG is available for small-scale, low-carbon generators that were eligible under the Feed-In Tariff (FiT) scheme. Eligible technologies include:
- Anaerobic digestion
- Hydro
- Micro-combined heat and power systems (with electrical capacity up to 50kW)
- Onshore wind
- Solar photovoltaics (PV)
GRC offers guidance on which systems qualify and how to apply for SEG payments.
What is the maximum system capacity?
The maximum capacity eligible for the Smart Export Guarantee is up to 5MW. This applies to low-carbon systems installed on your property. For micro-combined heat and power systems, the limit is 50kW. GRC can help ensure your system meets these requirements.
Who sets the export tariff rates?
SEG tariff rates are determined by SEG providers. Each provider must offer at least one export tariff, but they are free to offer additional options with varying terms. Providers may include administration costs in their tariffs, but payments must always be above zero.
At GRC, we monitor SEG provider offerings and can advise you on choosing the best tariff for your setup.
How are tariffs structured?
SEG providers design their tariffs based on their preferences, with options including:
- Fixed Rate Tariff: Pays a set amount per kWh, regardless of when the electricity is exported.
- Simple Variable Tariff: Offers variable rates, such as differing rates for day and night or weekdays and weekends.
- Advanced Variable Tariff: Adjusts rates based on half-hourly energy system conditions.
- Variable Tariff Linked to Market: Rates linked to market conditions, such as day-ahead wholesale prices.
- Variable Tariff Benchmarked to Market: Tariff rises and falls in direct proportion to half-hourly market prices.
All tariffs require metering systems capable of reporting exports on at least a half-hourly basis. GRC can help you understand and compare these options.
Will I get paid for electricity exported from my battery?
SEG legislation specifically applies to energy exported directly from the generating source (e.g., a solar PV system). Some SEG providers may allow payments for energy exported from a battery (also known as brown energy), but this depends on the provider’s policy.
GRC regularly reviews tariff details and can provide advice on which providers accept battery-stored energy. However, as tariffs may change, we recommend confirming specific details directly with providers before applying.
Will my existing renewable energy system qualify?
If you currently receive payments through the Feed-In Tariff (FiT) scheme, you are not eligible for SEG payments. However, you may opt out of FiT payments to join the SEG scheme.
It’s important to note that FiT export payments are guaranteed and index-linked to inflation, whereas SEG tariffs can vary and are not guaranteed. GRC can assist you in evaluating the pros and cons of switching schemes.