What is the Smart Export Guarantee?

The Smart Export Guarantee (SEG) is a government initiative that requires energy suppliers with over 150,000 customers to offer a payment to households and businesses for any surplus energy that they generate from renewable sources, such as solar panels, wind turbines, and hydroelectric generators. The scheme was introduced in January 2020 to replace the previous Feed-in Tariff (FiT) scheme.

The SEG guarantees that consumers are paid for each unit of excess energy that they export to the national grid, and the rate is set by the energy supplier. The payment can be in the form of a fixed rate or a variable rate, and it can be for a period of up to 20 years, depending on the supplier's tariff.

To be eligible for the SEG, the energy source must have a capacity of up to 5MW and must have a meter that can measure the amount of electricity generated and exported to the grid. Participants in the scheme must also ensure that their renewable energy source meets certain technical standards and is registered with the Microgeneration Certification Scheme (MCS).