The Department for Business, Energy and Industrial Strategy has announced a new proposal for ‘Smart Export Guarantee’ (SEG) as a replacement for the Feed-In Tariffs (FiT) scheme which will close to
new applications from 31 March 2019.
The proposal details how the guarantee would work in practice, legislating that all large energy suppliers will have to remunerate small-scale generators (up to 5MW in capacity) for the electricity they export to the grid. The new scheme will combine with existing technologies like smart meters to ascertain how much power any installation is providing to the grid, which will allow households and businesses to sell it at market prices. SEG could also encourage the wider use of energy storage systems and smart grid technologies, so power can be given back to the grid during periods of peak demand when prices for exported power will be highest.