Is there a replacement for the Feed-in Tariff?
The
Smart Export Guarantee was introduced as a replacement for the FiT on 1 January 2020.
The SEG compels energy suppliers with at least 150,000 customers to pay households for the renewable electricity they export to the grid, though it doesn’t include a generation rate.
Initially, energy suppliers offered low rates simply to fulfil their obligation, but a growing realisation that higher tariffs can attract new customers has since made the market extremely competitive.
There are now many time of use tariffs – including
Intelligent Octopus Flux and
British Gas Electric Driver – that allow you to profit by importing electricity to your battery at off-peak times, then using or selling it during peak periods.
From the start of April 2023 to the end of March 2024, a massive 283,666 installations signed up to an SEG tariff – three times more than the previous year’s 92,946 total –
according to Ofgem’s Annual Report.
It was also considerably more than the 153,010 new domestic installations in this period, because it also includes households with older systems that joined an SEG tariff during this time.
Overall, households on SEG tariffs earned £30.7 million – a 327% increase on the £7.2 million received in the previous year.
How do SEG rates compare to FiT rates?
SEG tariffs only pay you for exported electricity, unlike the FiT, which also paid you simply for generating electricity.
But even though households are no longer paid for every kWh of electricity they generate, the earnings you can make by exporting your electricity are substantially better.
As of November 2024, any solar household that signed up to the FiT after August 2012 will receive
7.14p per kWh until the end of March 2025.
Compare that with
the best SEG rates, which include more than a dozen better tariffs. If you’re happy to change your import supplier, you can currently earn three times as much as you can on the FiT export rate – or more.