What are SEG tariffs and how do they work for residential solar users?
SEG tariffs, or Smart Export Guarantee tariffs, are a government-backed initiative designed to benefit residential solar users in the UK. They allow homeowners with solar panels to sell surplus electricity back to the grid, providing a financial return on their renewable energy investment. This scheme supports the transition to a greener energy system and encourages more households to adopt solar technology.
By participating in SEG tariffs, residential solar users can not only reduce their electricity bills but also contribute to a more sustainable energy future. The scheme ensures that any excess energy generated is not wasted and provides an incentive for homeowners to maximise their solar energy production.
The Smart Export Guarantee was introduced in January 2020, replacing the previous Feed-in Tariff scheme. Under SEG, energy suppliers with more than 150,000 customers are obligated to offer at least one export tariff to eligible solar households. These tariffs pay for each unit of electricity that is exported to the grid, providing a steady income stream for solar users.
To benefit from SEG tariffs, residential solar users must have a solar PV system installed with a capacity of up to 5MW, and a smart meter to accurately measure the exported electricity. The rates offered under SEG tariffs can vary between suppliers, so it is advisable for solar users to shop around and compare offers to find the most competitive rate.
In addition to financial benefits, SEG tariffs play a crucial role in promoting sustainable energy practices. By selling excess energy back to the grid, solar households contribute to reducing the overall carbon footprint, supporting the UK’s commitment to achieving net-zero emissions. This makes SEG tariffs an attractive proposition for environmentally-conscious homeowners looking to make a positive impact.
