Smart Export Guarantee Tariffs: Find the Best SEG Rates

The Smart Export Guarantee (SEG) pays small-scale renewable electricity generators for exporting electricity to the grid to incentivise solar panel installation across the UK.

This article will help you find the best SEG tariffs and understand how the scheme operates.

Alternatively, you can speak to one of our experts, who can break down the savings included in all our solar panel quotes.

Key Takeaways

• The Smart Export Guarantee (SEG) provides a way for small-scale renewable electricity generators to receive payments for exporting electricity to the National Grid, covering technologies like solar PV, wind, micro-CHP, hydro, and anaerobic digestion.
• Different SEG tariffs for 2024 offer unique benefits and competitive rates, with notable options including Intelligent Octopus Flux at 27p per kWh, OVO SEG Tariff with a 15p per kWh variable rate, and Good Energy Solar Savings Exclusive at a fixed 20p per kWh.
• Maximising SEG earnings involves using battery storage to store excess electricity, strategically timing exports to align with peak demand periods, and monitoring energy usage with smart meters to optimise export timings and boost payments.

Smart Export Guarantee (SEG) Explained

The Smart Export Guarantee (SEG) revolutionises the way small-scale generators interact with the National Grid by allowing them to generate renewable electricity and receive payments for the electricity they export back to the grid.

SEG incentivises the adoption of renewable energy technologies. The scheme covers five key technologies:

• Solar PV
• Wind
• Micro-CHP
• Hydro
• Anaerobic digestion from waste

This enables a diverse range of participants to contribute to a sustainable energy future.

In the following sections, we delve into the specifics of SEG, including its workings, eligibility criteria, and operational scheme. These insights will clarify the benefits and requirements, helping you navigate the path to receiving SEG payments.

What is SEG?

The Smart Export Guarantee (SEG) is a scheme designed to ensure that small-scale renewable electricity generators receive fair compensation for their contributions to the National Grid.

Launched on January 1, 2020, SEG replaced the Feed-in Tariff (FiT) scheme, marking a new era in renewable energy incentives.

Under the smart export guarantee tariff, energy suppliers with more than 150,000 customers are mandated to offer at least one export tariff to eligible generators, ensuring a competitive market for SEG payments.

SEG tariffs must always be above zero, providing a guaranteed return for every kilowatt-hour (kWh) of electricity exported.

This flexibility allows households to choose a tariff that best suits their needs and preferences, whether they prioritise high export rates, reliable suppliers, or specific contract terms.

Who qualifies for SEG?

Eligibility for the Smart Export Guarantee (SEG) extends to a variety of small-scale renewable electricity generators. Installations must be located in Great Britain and include technologies such as:

• solar PV
• wind
• micro-CHP
• hydro
• anaerobic digestion

The total installed capacity should not exceed 5MW, or 50kW for micro-CHP systems. Additionally, participants must have a meter that records energy exported to the grid every half hour, ensuring accurate SEG payments.

To qualify, installations must also be certified under the Microgeneration Certification Scheme (MCS) or possess equivalent certification.

This ensures that the systems meet the required standards for safety and performance. Once these criteria are met, individuals and businesses can apply for SEG tariffs through their chosen suppliers and start receiving payments for their exported electricity.

How does SEG work?

The mechanics of the Smart Export Guarantee (SEG) are straightforward yet effective. SEG payments are calculated based on export meter readings and are made every three months by the chosen SEG licensee.

The rate, contract length, and other terms are determined by the SEG licensee, ensuring that the payments are competitive and tailored to the generator’s needs.

Generators must provide regular meter readings to their SEG supplier, who then calculates the payments based on the amount of electricity exported.

The payment process is designed to be seamless, with funds typically disbursed within 28 days of receiving the latest export meter reading. This system ensures that small-scale generators are fairly compensated for their contributions to the grid, promoting the adoption of renewable energy technologies.

Best SEG Tariffs for 2024

As we venture into 2024, several SEG tariffs stand out for their competitive rates and unique benefits. These tariffs not only offer attractive financial returns but also cater to various preferences and needs.

From high rates during peak times to flexibility in choosing suppliers, the best SEG tariffs for 2024 provide a range of options for renewable energy generators.

Let’s examine six distinctive SEG tariffs:

1. Intelligent Octopus Flux
2. OVO SEG Tariff
3. Good Energy Solar Savings Exclusive
4. E.ON Next Export Exclusive
5. ScottishPower SmartGen+
6. British Gas Export and Earn Plus

Each of these tariffs offers distinct advantages, making it easier for you to find the one that best suits your circumstances and how much you get back depends on how much electricity solar panels output.

Intelligent Octopus Flux

Octopus Energy’s Intelligent Octopus Flux is a frontrunner in the SEG tariff landscape for 2024, offering an impressive rate of 27p per kWh. T

his tariff is particularly advantageous for those who can export electricity during peak times, with rates varying depending on the time of day.

For instance, the rate can go as high as 35p per kWh during peak periods between 4pm and 7pm, making it ideal for those with flexible energy usage patterns.

To access this tariff, customers need to be with Octopus Energy and possess a solar panel system equipped with a compatible battery. This setup allows them to maximise their earnings by storing excess energy and exporting it during high-demand periods.

OVO SEG Tariff

OVO Energy’s SEG tariff is another strong contender, offering:

• A competitive rate of 15p per kWh on a variable rate
• Flexibility for those who prefer variable rates
• An added benefit of a £15 exit fee, ensuring that customers are not locked into long-term commitments

While the rate may fluctuate, it remains competitive compared to other tariffs offering fixed rates.

This tariff is particularly suitable for those who anticipate changes in their energy consumption patterns or prefer the flexibility of a variable rate. By choosing OVO’s SEG tariff, customers can benefit from a reliable export rate while maintaining the freedom to switch if better opportunities arise.

Good Energy Solar Savings Exclusive

Good Energy’s Solar Savings Exclusive tariff offers:

• A fixed rate of 20p per kWh
• Stability and high returns on exported electricity
• Maximised financial benefits for homeowners with solar PV panels
• A consistent and predictable income stream

This tariff is an attractive option for those seeking stability and high returns on their exported electricity.

One of the standout features of this tariff is its flexibility in choosing a grid electricity supplier. Unlike some tariffs that require customers to use a specific supplier, Good Energy allows participants to select their preferred supplier, offering greater freedom and choice.

This makes it an excellent option for those who value both high returns and flexibility in their energy arrangements.

E.ON Next Export Exclusive

E.ON Next’s Export Exclusive tariff provides the following benefits:

• A fixed rate of 16.5p per kWh, offering a reliable and predictable income for renewable energy generators
• Customers must have their electricity supplied by E.ON Next in order to qualify for this tariff
• Customers must have solar panels installed by the E.ON Solar and Storage team from January 1, 2024

This tariff is particularly appealing for those who have recently installed solar panels or are planning to do so.

With the added benefit of quarterly or annual payment options, it ensures that customers receive their earnings in a timely and convenient manner.

ScottishPower SmartGen+

ScottishPower’s SmartGen+ tariff offers a flexible rate of 15p per kWh, allowing customers to choose their energy supplier and solar installer.

This flexibility makes it an attractive option for those who want to maintain control over their energy arrangements while still benefiting from competitive export rates.

In addition to the SmartGen+ tariff, ScottishPower also offers another SEG tariff that pays 12p per kWh to all solar generators. This range of options ensures that customers can find a tariff that aligns with their specific needs and preferences.

British Gas Export and Earn Plus

British Gas’s Export and Earn Plus tariff provides a rate of 15p per kWh, making it one of the most accessible SEG tariffs available.

Unlike some tariffs that require customers to be on a specific import tariff, this option is open to a broader range of participants, including those who are not current British Gas customers.

This tariff is ideal for both individuals and businesses looking to maximise their export earnings without being tied to a specific energy supplier.

With competitive export payment rates and quarterly payments based on the amount of electricity exported, it offers a straightforward and lucrative option for renewable energy generators.

Choosing the Right SEG Tariff for You

Selecting the right SEG tariff involves considering various factors, from energy consumption patterns to the presence of electric vehicles and the willingness to switch suppliers.

By evaluating these elements, you can find the best SEG rate that aligns with your specific circumstances and maximises your financial benefits.

The following discussion will cover important considerations, benefits and drawbacks of fixed versus variable rates, and the influence of regional availability on your SEG tariff selection.

Factors to consider

When choosing an SEG tariff, several factors come into play. First and foremost, consider the export tariff rates offered by different providers.

Higher export rates can lead to significant savings over time, especially if you generate a substantial amount of excess electricity. Additionally, the reputation of the supplier and their customer service record are crucial.

Reliable suppliers with excellent customer service can make the process of receiving SEG payments smoother and more efficient.

Another important aspect is the compatibility of the SEG tariff with your existing energy setup.

For example, if you have a battery storage system, ensure that the tariff accommodates and maximises the use of stored energy. Also, consider whether the supplier offers a combination of import and export tariffs that align with your overall energy consumption patterns.

Fixed vs. Variable Rates

Choosing between fixed and variable rates is a critical decision in selecting an SEG tariff, especially when considering a variable tariff option.

Fixed rates provide:

• A set payment per kWh of electricity exported
• Stability and predictability
• A consistent income stream
• Avoidance of fluctuations in the energy market

For instance, Good Energy offers a fixed rate of 20p per kWh, providing a reliable return on exported electricity.

On the other hand, variable rates can offer higher payments during peak demand periods, benefiting those who can strategically time their exports.

These rates are often linked to wholesale electricity prices, meaning they can change throughout the day. This flexibility can lead to higher earnings if you can export electricity during high-demand times, such as late afternoon and early evening.

By understanding your energy usage patterns and the dynamics of variable tariffs, you can optimise your SEG payments and potentially increase your overall earnings.

Regional Availability

Regional availability can significantly impact the selection of the most beneficial SEG tariff. Some tariffs are only available in specific regions, depending on the service coverage of the energy supplier. For example, OVO’s SEG tariff is available only in certain areas, such as Wales, south-west England, and parts of Scotland.

Living in an eligible area is a critical criterion for SEG participation. Ensuring that the tariff you are interested in is available in your region is essential before making a decision.

By checking the regional availability of various SEG tariffs, you can narrow down your options and select the one that offers the best rates and terms for your location.

Applying for a SEG Tariff

Applying for a SEG tariff involves a few straightforward steps, from gathering required documentation to completing the application process with your chosen SEG tariff supplier.

The upcoming discussion will steer you through the essential preparations and steps, ensuring a hassle-free application process and successful establishment of your SEG account.

The necessary documents, application procedure, and the process of establishing your SEG account to initiate payments will be discussed further.

Required Documentation

To apply for a SEG tariff, you must gather several important documents. These typically include:

• Proof of ownership of the renewable electricity system, such as the Microgeneration Certification Scheme (MCS) certificate or an equivalent.
• An initial meter reading to start your SEG account.
• A copy of an electricity bill as proof of address.

Having a smart meter installed is also a prerequisite, as it records the amount of electricity exported to the grid. Ensuring you have all the necessary documentation ready will streamline the application process and prevent any delays in setting up your SEG account.

Application Process

The application process for a SEG tariff involves the following steps:

1. Submitting a completed application form along with the required documents to your chosen SEG tariff supplier.
2. For example, British Gas requires applicants to fill out an application form and provide information about their renewable system, along with an opening meter export reading.
3. Once you’ve submitted your application, you may need to provide regular meter readings to ensure accurate SEG payments.

If you decide to switch suppliers or cancel your SEG tariff, your current provider will be notified, and a final separate export meter reading will be requested.

This ensures a smooth transition and final payment settlement. Keeping your export readings up to date and following the application guidelines will help maintain an efficient SEG account setup.

Setting Up Your SEG Account

Setting up your SEG account involves the following steps:

1. Provide an initial meter reading.
2. Receive account details from your chosen supplier.
3. Once your application is processed, your SEG account will be set up based on the initial readings you provide.
4. Suppliers like British Gas will contact applicants with all necessary account details once the setup is complete, which typically takes up to 28 days.

This step ensures that your exported electricity is accurately recorded and that you receive timely SEG payments.

By following the setup instructions and keeping your meter readings up to date, you can efficiently manage your SEG account and maximise your earnings from exported electricity.

Maximising Your SEG Earnings

Maximising your SEG earnings involves strategic planning and the use of additional technologies, such as battery storage. By optimising how and when you export electricity, you can significantly increase your SEG payments.

The forthcoming discussion will examine strategies to boost your earnings, which encompass the utilisation of battery storage, timing your exports, and keeping track of your energy consumption.

These strategies will be discussed in greater detail in subsections 5.1, 5.2, and 5.3, offering valuable tips and insights.

Using Battery Storage

Integrating battery storage with your solar panel system can greatly enhance your SEG earnings. Here are some benefits of using solar batteries:

• They can store excess electricity generated during the day for use during peak demand periods or when solar generation is low.
• This reduces your reliance on grid electricity.
• It allows you to capitalise on higher SEG payments during peak times.

Lithium-ion batteries are highly recommended due to their longer energy storage duration and efficiency.

By pairing your solar panels with a reliable battery storage system, you can maximise the use of your generated electricity and increase your overall SEG earnings.

Timing Your Exports

Strategically timing your electricity exports can significantly boost your SEG payments. Exporting electricity during peak demand periods, such as late afternoon and early evening, can yield higher payments.

Some SEG tariffs offer higher rates during these times, making it beneficial to store excess energy and export it when demand is high.

Using smart meters can provide real-time data on your energy usage, helping you adjust your exports to align with peak demand periods. By timing your exports effectively, you can maximise your SEG earnings and make the most of your renewable energy system.

Monitoring and Adjusting Usage

Monitoring your energy usage and adjusting your consumption patterns can optimise your SEG payments. Here are some tips to help you:

• Use smart meters and energy monitoring apps to track your energy production and usage in real-time.
• Identify the best times to export excess electricity by analysing your energy data.
• Regularly review your energy consumption to identify patterns and opportunities to align your exports with peak payment periods.

By following these tips, you can maximise your SEG payments.

Providing ongoing meter readings is crucial if your supplier cannot directly obtain them from your smart meter.

By staying proactive and informed about your energy usage, you can make adjustments that enhance your SEG earnings and overall efficiency.

Legal and Regulatory Aspects of SEG

Understanding the legal and regulatory aspects of the Smart Export Guarantee (SEG) is essential for compliance and maximising your benefits.

All licensed energy companies with 150,000 or more customers must provide at least one SEG tariff, ensuring a competitive market for small-scale generators. The upcoming discussion will address crucial compliance requirements, the procedure of transitioning from FiT to SEG, and the rights and responsibilities of SEG participants.

These legal aspects will be dissected in subsections 6.1, 6.2, and 6.3, offering a thorough overview.

Compliance Requirements

To participate in the SEG scheme, renewable energy generators must meet specific compliance requirements. Energy suppliers may ask for an MCS certificate to prove that your installation meets the required standards.

Ensuring that your system complies with these standards is crucial for legitimate and efficient participation in the SEG scheme.

Meeting these compliance requirements not only legitimises your participation but also ensures that you receive accurate and timely SEG payments.

By adhering to the necessary standards and maintaining proper documentation, you can smoothly navigate the SEG framework and optimise your earnings.

Switching from FiT to SEG

The Feed-in Tariff (FiT) scheme closed to new applicants in March 2019, but existing participants can switch to SEG payments if they prefer.

While you cannot receive both FiT export and SEG payments simultaneously, you can opt out of FiT export payments to start receiving SEG payments, while continuing to receive FiT generation payments.

Switching from deemed to metered export payments can also be beneficial. By opting for SEG payments, you can potentially access better rates and terms, enhancing your overall earnings from exported electricity.

Rights and Obligations

Licensees of SEG have the authority to set the rate, contract length, and other terms for SEG Generators based on their discretion.

As a participant, it’s important to understand your rights and obligations under the SEG scheme. This includes knowing that you cannot take over an existing SEG contract from a previous owner, ensuring that each contract is tied to a specific generator and installation.

Staying informed about your rights and obligations helps ensure that you receive fair compensation and comply with all legal requirements. By understanding the terms set by your SEG licensee and maintaining compliance, you can maximise the benefits of your renewable energy system.

Summary

In summary, the Smart Export Guarantee (SEG) offers a valuable opportunity for small-scale renewable electricity generators to receive payments for their contributions to the National Grid.

By understanding the various SEG tariffs available for 2024, their benefits, and the application process, you can make informed decisions that maximise your financial returns and support sustainable energy practices.

Whether you are considering battery storage, timing your exports strategically, or monitoring your energy usage, there are numerous ways to enhance your SEG earnings.

By staying compliant with legal and regulatory requirements and choosing the right SEG tariff for your needs, you can make the most of your renewable energy system and contribute to a greener future.

Frequently Asked Questions

What is the Smart Export Guarantee (SEG)?

The Smart Export Guarantee (SEG) is a scheme that provides payments to small-scale renewable electricity generators for the energy they export to the National Grid. It incentivises renewable energy production.

Who qualifies for SEG?

Only installations located in Great Britain and meeting specific criteria related to technology type and capacity limits qualify for SEG. These criteria include solar PV, wind, micro-CHP, hydro, and anaerobic digestion.

How do SEG payments work?

SEG payments are calculated based on export meter readings and are distributed by the selected SEG licensee every three months.

What are the best SEG tariffs for 2024?

The best SEG tariffs for 2024 include Intelligent Octopus Flux, OVO SEG Tariff, Good Energy Solar Savings Exclusive, E.ON Next Export Exclusive, ScottishPower SmartGen+, and British Gas Export and Earn Plus. Consider comparing these options to find the most suitable one for your needs.

How can I maximise my SEG earnings?

To maximise your SEG earnings, consider pairing battery storage with solar panels, timing your exports during peak demand periods, and monitoring your energy usage to optimise export times. These strategies can help increase your earnings significantly.