Smart Export Guarantee
The Smart Export Guarantee (SEG) was created following the decision by the UK government under the Department for Business, Energy & Industrial Strategy to close the Feed-in Tariff scheme....[1]. The purpose of Smart Export Guarantee is to pay small-scale renewable energy generators, such as those with solar panels, for any excess energy that they export to the national grid[2]
Unlike the Feed-in Tariff scheme, Smart Export Guarantee does not act as a subsidy scheme and instead remunerates small-scale renewable energy Generators for what they have produced and exported, whereas the FIT scheme paid for both generation and export, regardless of whether the generated electricity was used by the Generator on site[3].
The way in which energy suppliers design and implement the tariffs they offer is for them to decide, BEIS says this is to allow for innovation and quick implementation. Due to the changing nature of the energy sector within the United Kingdom and globally, these tariffs are expected to change over time and become smarter in line with the UK governments strategy to facilitate smart energy systems and grids[4]
Background[edit]
As the Feed-in Tariff scheme closed to new applicants as of 31st March 2019, those that installed domestic and small-scale renewable energy systems (e.g. solar panels) post 31st March 2019 were unable to receive payments for energy that was unused and exported to the national grid, thus essentially subsiding energy companies with free electricity. Government laid legalisation for Smart Export Guarantee recently under The Smart Export Guarantee Order 2019[5], mandating that energy suppliers with over 150,000 domestic electricity customers[6] must participate in the scheme, though have the option to control the price at which they purchase the energy, they must also offer at least one tariff rate and have the option to create their own provide it follows the requirements set out in the legalisation.[7]
Ahead of the official launch of SEG many suppliers such as Ecotricity[8] and Bulb[9] are already offering export tariffs of their own, through Power Purchase Agreements, with more expected to follow as and when BEIS releases further information closer to the Jan 2020 deadline.
As of December one of two 'deep green' energy companies Ecotricity announced they are working on an Export Tariff, despite not being mandated under the Smart Export Guarantee. [10] According to the Energy Saving Trust[11] energy suppliers who have over 150,000 domestic supply customers will be mandated to offer an export tariff to small-scale electricity generators for each kilowatt-hour of electricity they sell to the grid, as measured by a smart meter.
Implementation of Smart Export Guarantee[edit]
The Department for Business, Energy & Industrial Strategy see Governments policy on Smart Export Guarantee as relatively limited, particularly when compared with the Feed-in Tariff scheme, relying on market-driven factors within the UK Energy Industry to deliver 'SEG Export Tariffs' to their customers, so that small-scale renewable generators receive at least some form of compensation for exporting their energy to the National Grid.[12]
Unlike the Feed-in Tariff, Smart Export Guarantee will only make export payments, rather than making subsidy payments renewable generators will receive remuneration for energy produced that they didn't use at their property and was sent to the National Grid. [13]
Draft guidance was released by the industry regulator Ofgem on October 9th 2019, allowing consultation with Suppliers to take place before releasing a finalised version by 1st January 2020, the date on which Suppliers with 150,000 domestic customers or more must provide at least one 'Export Tariff' in line with legislation under the SEG Order 2019.[14][15]
On 12th December 2019, Ofgem published their final guidance to Energy Suppliers and Renewable Generators[16]
See Also[edit]
Feed-in tariffs in the United Kingdom
Energy policy of the United Kingdom
References[edit]
- ↑ "Smart Export Guarantee and Feed-in Tariffs". Energy Saving Trust. Retrieved 2019-07-27.
- ↑ "Post | SmartExportGuarantee - Sell solar energy on the new export tariff". SmartExportGuarantee. Retrieved 2019-07-27.
- ↑ "What is a Feed-in Tariff? - Ecotricity". www.ecotricity.co.uk. Retrieved 2019-07-27.
- ↑ "Funding for innovative smart energy systems". GOV.UK. Retrieved 2019-07-27.
- ↑ "The Smart Export Guarantee Order 2019". www.legislation.gov.uk. Retrieved 2019-07-27.
- ↑ "Post | SmartExportGuarantee - Sell solar energy on the new export tariff". SmartExportGuarantee. Retrieved 2019-07-27.
- ↑ https://www.gov.uk/government/news/new-laws-to-guarantee-payment-for-solar-homes-providing-excess-electricity
- ↑ "Power Purchase Agreement (PPA) - Ecotricity". www.ecotricity.co.uk. Retrieved 2019-07-27.
- ↑ "We'll buy the energy you export | Blog | Bulb". bulb.co.uk. 2019-03-15. Retrieved 2019-07-27.
- ↑ "Smart Export Guarantee - Ecotricity". www.ecotricity.co.uk.
- ↑ "Smart Export Guarantee – a lifeline for the solar industry?". Energy Saving Trust. 1 December 2007.
- ↑ https://www.solarpowerportal.co.uk/news/seg_ofgem_details_guidance_on_data_the_fits_register_and_storage_exports_fo
- ↑ BBC News, Reality Check (2 May 2019). "Will the government pay you to go green?".
- ↑ https://www.ofgem.gov.uk/system/files/docs/2019/10/seg_supplier_guidance_for_consultation_final_for_publicationv2.pdf
- ↑ http://www.legislation.gov.uk/uksi/2019/1005/made
- ↑ "About the Smart Export Guarantee (SEG)". Ofgem. 16 September 2019.
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