Government unveils ‘Smart Export Guarantee’ proposals

The plans aim to protect consumers while guaranteeing small-scale clean electricity providers would be paid for their excess electricity

Solar roof installation

The UK Government has unveiled new proposals to protect consumers while guaranteeing households and other small-scale renewable electricity providers would be paid for supplying excess electricity to the grid.

The proposed ‘Smart Export Guarantee’ (SEG) would replace the existing ‘Feed-in Tariff’ scheme (FIT).

The government believes the new scheme could create a new market by encouraging suppliers to competitively bid for the electricity, which it believes would ensure fair prices.

Ministers say such a scheme would also provide the local grid with more clean, sustainable energy.

The SEG would mean households and businesses installing new renewable generation would be paid transparently for the energy they produce, by using smart technologies and battery storage infrastructure.

Currently, exporters are assumed to offload half of the electricity they produce to the grid and are paid for it, even when this is not the case.

Energy and Clean Growth Minister Claire Perry said: “This new scheme could help us to build a bridge to the smart energy system of the future, with consumers firmly at its heart – not only buying electricity but being guaranteed payments for excess electricity they can supply to the grid.

“It could also reduce strain on energy networks with a more decentralised and smarter local network delivering resilience much more cost effectively, unlocking innovative products for electric vehicles and home energy storage; a win-win for consumers and the environment and a key part of our modern Industrial Strategy.”

Latest Podcast