The Smart Export Guarantee (SEG) explained

The Smart Export Guarantee (SEG) came into effect on 1st January 2020, replacing the Feed-in Tariff (FiT). These schemes offered payments to businesses with installed onsite generation, a vital part of the UK’s journey to net zero.

Onsite generation can offer businesses various benefits, including self-sufficiency and environmental sustainability – and as the technology becomes less expensive and more efficient, the advantages will only increase. While these green solutions are not suitable for every business, they are becoming more prevalent in this time of economic recovery.

Here are some FAQs regarding the new scheme and how it works:

What is the Smart Export Guarantee (SEG)?

The SEG offers payment to small-scale renewable energy generators for excess electricity that is exported to the National Grid. To do this, suppliers with at least 150,000 domestic customers will be required to provide a minimum of one tariff offer to small-scale low-carbon generators.

Do I need to apply for the Smart Export Guarantee?

If you are a small-scale energy generator with either solar PV, wind, CHP, Hydro, or Anaerobic digestion, installed in England, Scotland or Wales with a capacity up to 5MW (or up to 50kW for micro-CHP), you may fit the criteria for the SEG.

For next steps and more info download our SEG Guide

What if I already get the Feed-in Tariff (FiT)?

If you signed up for FiT before the 31 March 2019 deadline, your payments will continue until your contract runs out. The SEG is mostly for companies or households with new renewable energy installations, or for those who missed the FiT deadline.

There is no FiT subsidy for newly installed renewable energy technologies after this date. Backdated applications will also not be accepted.

What is the difference between SEG and FiT?

Whilst the SEG is replacing the Feed-in Tariff, there are differences between the two schemes. The Feed-in Tariff included both export and generation tariffs, but the SEG only provides the former. In other words, with the SEG you will only receive tariffs for the renewable energy you don’t use. This means that customers may not see the same financial benefit for the renewable energy they are generating as solar panel owners initially did with FiT. (Tariffs will vary across regions depending on network requirements.)

There is also a scheme for renewable heat technologies for both domestic and non-domestic purposes, known as the RHI and non-domestic RHI. This government scheme provides financial incentives for the installation of renewable heat technologies. Eligible technologies include biomass heat, solar thermal and heat pumps.

How do I know if on-site generation is right for my business?

On-site generation can often provide energy security: a worthwhile commodity in a volatile market. It can also help businesses avoid non-commodity costs, which can make up almost 60% of your energy bills.

At EIC, we already support our clients with initiatives that incentivise clean energy use, assisting clients with navigating the transition to a net zero landscape. We can help guide you towards the most efficient and cost-effective energy management plan. This can mean exploring on-site generation options, as well as other sustainable solutions that can reduce your carbon emissions and energy costs.

For businesses that have set or plan on committing to a net zero target, EIC would be happy to engage with you. Our carbon team works with businesses to put together an adaptable and bespoke roadmap, outlining the sustainable steps required to reduce your carbon footprint. Along the way, we will ensure you stay compliant with changing legislation, allowing you to make the most of schemes such as the SEG.

To understand more about our energy and carbon services contact us at EIC.

Battery Storage: how can it benefit your business?

Renewable energy is key to building our sustainable future. The issue is that although solar and wind provide clean, inexpensive power, they only do so in the right conditions. A cloudy, windless day can lead to a significant drop in supply. This sort of intermittent power cannot provide the consistent energy we require, especially as our demand increases. This is why battery storage is becoming essential as we move away from fossil fuels.

Installing onsite power storage can be a simple process and technology breakthroughs have made it a viable and cost-effective option for many businesses. However, the benefits of battery storage go far beyond convenience. Developing an integrated battery solution is an effective way to fully optimise your energy capacity. It can enable businesses to become less reliant on the national grid, reduce CO2 emissions, and generate additional revenue for your business.

Reduce your electricity costs

Energy use at peak times can be expensive. Especially as it can have a huge effect on the non-commodity costs that you pay each year. Being able to purchase energy when it is at its cheapest and use it when you need it can make a huge difference to your utility bills.

Until battery technology came along, lowering your energy costs involved turning off devices or lowering usage. Battery storage is a far more flexible solution that offers opportunities outside of small-scale savings. When paired with renewable generation technology it can help you avoid non-commodity costs altogether. Or at the very least, help you avoid higher costs in times of peak demand.

Stabilise your energy supply

Having your own storage batteries guarantees a continuous source of power regardless of what is happening to the network. This reduces your reliance on the grid, protecting you from blackouts and local technical faults as well as securing a reliable energy supply.

Get paid to help balance the grid

With battery technology, energy can be stored for later use or sold back to the grid for additional revenue via potentially lucrative demand-side response (DSR) schemes. By becoming a demand-side supplier you are helping to balance the system and smooth out peaks in demand. This sort of initiative is a fundamental part of the government’s ongoing energy strategy. And further similar opportunities are likely to follow as we move towards 2050.

How EIC can help you store power

If your business could benefit from lower energy bills and a more stable supply, a battery setup could be the ideal solution. At EIC, we provide guidance on the installation of onsite generation and power storage.

While these systems can have great benefits on their own, the returns are even greater when working in tandem with other technology. We can offer energy management services that help improve your efficiency and further lower your expenses. If you would like more information on battery technology and want to explore your options, get in touch today.