If you have solar panels installed in your home, you might be able to make money by selling your excess renewable energy. Thanks to the UK government's Smart Export Guarantee (SEG) scheme, large energy suppliers are obliged to pay households for the renewable energy they export back to the National Grid.
The Smart Export Guarantee is a government-backed initiative that requires large energy suppliers to pay homeowners for the renewable energy they produce and send back to the National Grid. This includes energy generated from solar panels, wind turbines, micro combined heat and power, hydro, or anaerobic digestion. Homeowners can request payments from one of the 15 licensed companies that offer SEG rates, which can be any amount above zero.
The SEG scheme is hugely beneficial to homeowners looking to save money with solar energy. Unlike the defunct Feed-in Tariff (FiT) scheme, which was replaced by the SEG in January 2020, the responsibility for choosing the best rate lies with the consumer. If you have solar panels installed and you're not using all the energy you generate, you're likely exporting half of your power back to the Grid. Why not get paid for it?
So, what's the best Smart Export Guarantee rate available? Currently, Octopus offers the highest SEG rate, paying out 24p for every kWh of renewable electricity a household sends to the Grid. However, this rate is only available to Octopus' own customers, while other households can receive 4.1p per kWh. If you don't want to switch energy suppliers, ScottishPower's SmartGen tariff offers the best SEG rate for everyone at 12p per kWh.
It's also worth noting the worst Smart Export Guarantee rates. E pays the least for your renewable energy, handing over just 1p per kWh. EDF and E.On's SEG rates are also quite low at 3p per kWh, despite the two companies making billions in profits over the past year.
If you're wondering how much money you can earn from the Smart Export Guarantee, the average owner of a three-bedroom house with a 3.5 kWp solar panel system will earn £159 per year from ScottishPower's 12p per kWh rate. However, your earnings will vary based on the size of your solar panel system and your property's location. The larger your solar panel system, the more money you can earn, while your location will determine how much sunshine you get and, consequently, how much renewable energy you produce.
It's worth noting that the Smart Export Guarantee rates are subject to change. Energy suppliers may adjust their rates periodically to stay competitive or to reflect changes in the market. It's important to keep an eye on the rates offered by different energy suppliers to ensure you're getting the best deal possible.
In conclusion, the Smart Export Guarantee is a fantastic initiative that allows homeowners to make money by selling their excess renewable energy. With 15 licensed energy suppliers offering SEG rates, it's important to shop around and choose the best rate available to you. By doing so, you can reduce your energy bills and earn some extra cash while contributing to a greener future.
Reference:
- https://www.theecoexperts.co.uk/solar-panels/smart-export-guarantee