The Smart Export Guarantee, a motion set by the government in January 2020, offers payment to a variety of small-scale low-carbon energy generators, from licensed electricity suppliers, as a means to encourage UK homeowners to implement renewable energy.

So far, there are two main types of Smart Export Guarantee charges, a fixed and flexible rate. A fixed rate SEG is a set amount paid per kilowatt-hour of electricity exported to the grid, whereas a flexible rate SEG is different amounts paid depending on how valuable the electricity is to the system at varying times.

What does the SEG cover?

• Solar panels: One of the most popular ways to source electricity, Solar panels use sunlight to generate low-carbon energy.
• Wind power: Wind power, a leading renewable power source in the UK, is mostly used on large-scale farms but is still available for at-home use.
• Anaerobic: Anaerobic digestion is the process of breaking down organic material, like animal or food waste, to produce biogas which can be used as an energy source
• Hydropower: Hydropower is water generated energy, produced by converting the kinetic energy of water into electrical energy.
• Micro combined heat and power: Micro combined heat and power is a system generating electricity and warmth at the same time, significantly reducing energy costs and environmental impact.

In order to qualify for the SEG, the total capacity for the first four categories cannot surpass 5MW. No matter what kind of system you have, you also need to have an export meter. Smart meters take measurements every half hour and automatically send the readings to your SEG licensee.
How Much Can You Make Selling Energy Back to the Grid?
You only get tariffs for the renewable energy you don’t use. How much you can get through these export tariffs varies depending on your SEG licensee.

How Do You Apply for the SEG?
Ensure you prepare the following information and documents beforehand:

• Up-to-date smart meter or half-hourly export meter reading.
• MCS certification.
• Proof of ownership.

The application form. This can be found on the SEG licensee’s website.
Processing your application can take up to 28 days once it has been submitted. A SEG licensee may need to inspect your system before accepting your application.