What is the SEG & is it Worth it?
New applications to the Feed in Tariff (FIT) scheme closed on 1 April 2019, and in January 2020 it was replaced by the Smart Export Guarantee (SEG) scheme.
The Smart Export Guarantee (SEG) is a scheme in the UK that pays homeowners for the excess electricity their solar panels generate and send back to the grid. Here are the key benefits for homeowners:
- Earn Money for Surplus Energy: If your solar panels produce more electricity than you need, the SEG allows you to sell that extra power to the grid. This can earn you money, helping to offset the cost of your solar system.
- Fair Rates: The SEG offers a reasonable rate (starting at around 5p per kWh) for the energy you export. While it’s not as much as what you save by using the energy yourself, it’s still a good way to make money from your surplus power.
- Lower Energy Bills: Even if you're not exporting energy, generating your own solar power reduces the amount you need to buy from the grid, which lowers your electricity bills.
- No Fixed Contract: The SEG doesn’t require long-term contracts, giving you flexibility in how and when you sell your excess energy.
- Environmental Benefits: By exporting excess solar power back to the grid, you’re contributing to a cleaner, greener energy supply for everyone.
The Smart Export Guarantee (SEG) can be a good option for solar PV owners, offering competitive rates starting at around 15p per kWh for exported energy. However, if your goal is to be less dependent on the grid or make your solar PV system pay for itself as quickly as possible, the SEG should be a secondary consideration.
Should You Sign Up for the SEG?
In short, yes. While your primary focus should be on maximizing self-consumption, the SEG ensures you get a fair return for any excess energy that needs to be exported to the grid. Even with a storage solution in place, there will be times when exporting energy is necessary, and the SEG will provide compensation for that.
By using a combination of these strategies—optimizing your energy use, storing surplus power, and taking advantage of the SEG, you can make your solar PV system work harder and recover your investment faster.
Find out more at https://www.ofgem.gov.uk/environmental-and-social-schemes/smart-export-guarantee-seg.
