How does the smart export guarantee work with solar panels?

The Smart Export Guarantee (SEG) is a government scheme in the UK designed to encourage homeowners and businesses to invest in renewable energy sources like solar panels. It replaced the earlier Feed-in Tariff (FiT) scheme and was introduced in January 2020. Here's how the SEG works with solar panels:

1. Solar panel installation: To participate in the SEG, you need to have solar panels or another eligible form of small-scale renewable energy generation installed on your property. This typically involves the installation of solar photovoltaic (PV) panels on your roof or in your garden.

2. Electricity generation: Solar panels generate electricity when exposed to sunlight. This electricity can be used to power your home or exported to the grid when it exceeds your immediate consumption.

3. Metering: To accurately measure the electricity you export to the grid, you'll need a special SEG meter. This meter records the amount of electricity you export and ensures you're fairly compensated for it.

4. Contract lengths: SEG contracts can vary in length, typically ranging from one to three years. You can choose the supplier and contract that best suits your needs. Some suppliers offer fixed rates, while others offer variable rates that may change over time.

5. Eligibility: Most small-scale renewable energy systems are eligible for the SEG, including solar PV panels, wind turbines, hydroelectric generators, and anaerobic digesters, among others.

6. Registration: To participate in the SEG, you'll need to register your installation with an SEG-licensed supplier. You can choose the supplier that offers the best export rate for your electricity.

7. Payment: Your SEG payments are typically made on a regular basis, such as monthly or quarterly, depending on your energy supplier's policies.

8. Energy bill savings: The electricity you generate and use from your solar panels is free, which can lead to significant savings on your energy bills. Additionally, the income you receive from exporting excess electricity can further offset your energy costs.

It's important to note that SEG rates can vary, and they may not always be as lucrative as those offered under previous schemes like the FiT. Therefore, it's advisable to shop around and compare rates from different SEG-licensed suppliers to maximise your income from solar panel exports. Additionally, the SEG is subject to change, so staying informed about updates and revisions to the scheme is crucial.