The government has announced a proposed replacement scheme for the export tariff under the Feed-in Tariff (FiT) scheme, called the Smart Export Guarantee (SEG). Announced on Tuesday 8 January, the SEG is planned to guarantee new small-scale renewable electricity providers payment from suppliers for electricity exported to the grid. The proposed design would see BEIS mandate that larger electricity suppliers (>250,000 domestic electricity supply customers) offer small-scale generators a price per kWh for the electricity they export to the grid. Exported power would have to be metered, with suppliers obliged to provide at least one export tariff. Suppliers would determine the tariff per kWh for remuneration, and the length of the contract.
The government’s proposed replacement of the FiT export tariff has been welcomed by the industry. Solar Trade Association (STA) Chief Executive Chris Hewitt gave the proposals “a cautious welcome”, adding: “We are very pleased the government is unequivocal; small generators will be compensated for the power they contribute to the system, but the issue remains providing remuneration at a fair market rate.” The Renewable Energy Association (REA) added: “Whilst the details around the transition from the former subsidy scheme will be important, this signal of support for the sector from government will help our members continue to provide smarter, cleaner and cheaper electricity in the decade to come.”
Views on the proposal are invited by 5 March.