The Smart Export Guarantee (SEG) rewards clients for the renewable electricity they have generated and placed into the grid. Large energy companies had to engage from the beginning of 2020, and it replaces the Feed-in Tariff scheme.
The Smart Export Guarantee pays British homes for the excess renewable electricity they produced, and the power generated using renewable technologies like solar panels, hydro wind and biofuels.
The UK Government has guaranteed payments for homes adding renewable electricity into the national grid.
But you have to sign up to an SEG tariff otherwise you won't get compensated for your electricity, and the National Grid will get it for free.
It is unlikely that you'll be able to make a lot of money from the SEG because SEG only pays for excess electricity put into the grid, rather than all the power that's generated.
Energy companies have set their tariff prices, so you need to consider your choices, the energy companies have to pay more than nothing but the range is quite large (1p/kWh and 6p/kWh)
Savings and earnings will depend on how much electricity you export to the national grid, so if you are contemplating installing renewable generation equipment, take into account the cost of installing the system and any maintenance costs.
All UK energy companies with more than 125,000 customers have to submit an SEG tariff. Energy companies under this threshold can choose to take part.
You don't have to switch energy suppliers to get a more favorable SEG tariff. You can choose a another supplier to sell your renewable electricity.
The SEG is designed at new renewable technology owners and will only pay for the exact amount of electricity you export to the national grid.