How to Choose a SEG Tariff in Great Britain

Key Takeaways

• You are not required to choose your current energy supplier for your Smart Export Guarantee (SEG) tariff.
• You are entitled to payments based on actual meter readings, not 'deemed' export estimates.
• All eligible small-scale generators must be offered a SEG tariff by licensees.
• Compare offers from different SEG licensees to find the best tariff for your circumstances.

How to Choose the Best Smart Export Guarantee (SEG) Tariff

To choose the best Smart Export Guarantee (SEG) tariff, compare offers from all available SEG licensees, as you are not tied to your current energy supplier. Focus on tariffs that pay based on actual meter readings for your exported electricity. This approach ensures you receive fair compensation for the energy your system sends to the grid.

Understanding the Smart Export Guarantee (SEG)

The Smart Export Guarantee (SEG) is a government-backed initiative that launched on 1 January 2020. Its purpose is to enable small-scale generators in Great Britain to receive payments from electricity suppliers for electricity they export back to the National Grid. Ofgem, the Office of Gas and Electricity Markets, administers the scheme.

Under the SEG, certain electricity suppliers, known as SEG Licensees, are obligated to offer a SEG tariff to all eligible generators. These licensees determine the rate, contract length, and other terms of the tariff. However, a key rule is that SEG tariff rates must always be above zero. This mechanism ensures that if you generate your own electricity and export any surplus, you can receive payment for it.

Your Rights as a Generator

The SEG scheme provides specific entitlements to small-scale generators, which are crucial for choosing the right tariff:

• Freedom to Choose Your Licensee: You can apply for a SEG tariff with any SEG licensee. Your SEG licensee does not need to be the same company as your current energy supplier. This means you have the flexibility to shop around and select the best offer, rather than being tied to your import electricity provider. You can even use separate companies for your SEG payments, electricity supply, and gas supply if you wish.
• Payments Based on Actual Meter Readings: Generators are entitled to payments based upon actual meter readings. This is an important protection, ensuring you are paid for the precise amount of electricity you export. While some suppliers may offer deals with alternative payment models, you have the right to insist on payments derived from your smart meter's readings.

Comparing SEG Tariffs

Since SEG Licensees determine their own rates and terms, comparing offers is essential to find the best tariff for your individual circumstances. Here is how to approach the comparison:

1. Identify SEG Licensees: Ofgem maintains a list of all current SEG Licensees. Start by checking this list to see which companies operate in your area.
2. Visit Supplier Websites: Each SEG licensee will publish details of their available SEG tariffs on their own website. You will need to visit these sites to gather information on their specific rates, contract lengths, and any other terms or conditions.
3. Focus on Key Terms:

• • Rate per kWh: While Ofgem does not set a rate, and rates must be above zero, the actual pence per kilowatt-hour (kWh) offered will vary significantly between licensees.
  • Contract Length: Some tariffs may offer fixed rates for a set period, while others might be variable.
  • Payment Frequency: Understand how often you will receive payments for your exported electricity.
  • Eligibility Criteria: Ensure you meet any specific requirements the licensee might have beyond the general SEG rules.

4. Consider Your Export Profile: If you typically export more electricity during certain times of the day, look for tariffs that might offer higher rates during those peak periods.

Remember, no single "best" tariff exists for everyone; the ideal choice depends on your generation patterns, consumption habits, and priorities.

Eligibility for a SEG Tariff

Before comparing tariffs, ensure your installation meets the eligibility criteria for the Smart Export Guarantee.

• Location: Your installation must be located in Great Britain. The scheme does not extend to Northern Ireland, which has its own arrangements.
• Technology: The SEG supports various low-carbon technologies, including:
• • Solar photovoltaic (solar PV)
  • Wind
  • Micro combined heat and power (micro-CHP)
  • Hydro
  • Anaerobic digestion (AD)
• Capacity Limits: Your total installed capacity (TIC) must be no more than 5MW. For micro-CHP installations, the capacity limit is no more than 50kW.
• DNO Registration: Your solar panel system needs to be registered with your local Distribution Network Operator (DNO). This is a mandatory step for connecting your generation system to the grid.
• Sustainability Requirements: If your installation uses Anaerobic Digestion (AD), it will need to meet specific sustainability criteria and reporting requirements.

For information on reducing the cost of your installation, you may wish to read our guide on Zero VAT for Solar Panels in the UK.

What You Can Check Yourself, and What You Cannot

As a homeowner with a small-scale generation system, you have several responsibilities and actions you can take, but also clear limits to what you can control:

• What you can check yourself:
• • Your eligibility: Verify that your installation meets the SEG's location, technology, and capacity requirements.
  • DNO registration: Confirm your system is registered with your local Distribution Network Operator.
  • Compare tariffs: Actively research and compare the rates, terms, and contract lengths offered by different SEG licensees.
  • Your export data: Monitor your smart meter readings to understand your export patterns and ensure payments align with actual exports.
• What you cannot do yourself:
• • Set the export rate: SEG Licensees determine the rate, contract length, and other terms; you cannot set your own.
  • Force a supplier to offer a specific tariff: While licensees must offer a tariff, you cannot dictate its terms.
  • Change SEG scheme rules: The Smart Export Guarantee is a government-backed initiative administered by Ofgem, and its core rules are not subject to individual modification.
  • Approve your own connection: Your solar panel system needs to be registered with your local Distribution Network Operator (DNO), which involves their approval process.

What the Published Sources Do Not Tell You

While the Smart Export Guarantee framework is clear, certain details are not centrally published or vary by provider:

• Specific SEG Rates: Ofgem does not publish a SEG rate in pence per kWh. Each SEG Licensee determines their own rates, which are subject to change and are only available directly from the individual suppliers.
• Detailed Application Processes: The exact application process for a SEG tariff varies between different SEG licensees. You will need to consult each supplier's website for their specific steps and required documentation.
• Future Tariff Changes: While SEG tariff rates must always be above zero, future changes to these rates by individual licensees are not predictable or centrally announced.
• Detailed DNO Connection Requirements: While DNO registration is mentioned, specific G98/G99 DNO connection requirements and processes are complex and vary by local Distribution Network Operator. These are typically handled by your installer.
• Specific Planning Guidance: While generally not required for solar panels, specific guidance on consulting local planning offices varies by local authority and is not provided in general SEG documentation.