THE UK government has announced new laws that will ensure households and businesses with small-scale renewable technologies, are paid for exporting their excess electricity to the grid.
The Smart Export Guarantee (SEG), builds on the government’s previous subsidy scheme, the Feed-in Tariff (FiT), which supported the installation of 850,000 renewable projects. The FiT closed to new entrants in April this year.
Under this Smart Export Guarantee, energy suppliers will be required to offer a payment for the electricity households with solar PV panels, and other small-scale renewable electricity generators, export to the grid.
The legislation puts a legal obligation on energy suppliers with over 150,000 customers to introduce export tariffs by 1st January 2020. MCS certification (or equivalent) will be a requirement to qualify for the SEG, helping to safeguard high standards in the industry.
MCS is an industry-led and nationally recognised quality assurance scheme. Working with industry to define, maintain and improve quality, MCS allows for the certification of products and installers so that people can have confidence in the low-carbon technology they invest in.
Ian Rippin, CEO of MCS said: “The introduction of the SEG, with a clear obligation to be MCS certified, will act as a conduit for a more robust low carbon marketplace. This will contribute to the growth of quality assured installations, by guaranteeing payment for those homes that generate excess electricity. We have a clear obligation to protect consumers and support our members. MCS certification allows Installers to evidence their compliance to the sector’s quality standard.”
Energy and Clean Growth Minister Chris Skidmore, said: “The future of energy is local and the new smart export guarantee will ensure households that choose to become green energy generators will be guaranteed a payment for electricity supplied to the grid.”
The design of the tariff is down to individual suppliers which BEIS says is to allow for innovation and quick implementation. The likes of Octopus and Bulb are already offering an export tariff to their customers. It is expected that over time tariffs will become increasingly smart.