Did you know that if you generate renewable electricity in your home or business, you can feed back into the grid any electricity that you don’t use?

For huge consumers of energy (like big businesses) this is a massive boon.

Continue reading to find out how your business could benefit.

Short Summary

Under the Smart Export Guarantee (SEG) you will be paid for every unit of electricity you feed back into the grid. Although you won’t be paid for any that you use yourself, you will save from not purchasing from the grid.

What do you need to apply for a SEG tariff

For a SEG tariff, you will need to have a renewable electricity generating system that meets the SEG eligibility requirements. You must also have a meter capable of providing half-hourly export readings. This would typically be a smart meter, which you can speak to your energy supplier about getting if you do not already have one.

You will also need to show that your installation and installer are certified through the microgeneration certification scheme (MCS) or another equivalent scheme. You will not be able to receive SEG tariffs if you are also receiving export payments under the Feed-in Tariff scheme.

How do I get a SEG tariff

You need to apply directly to a SEG tariff supplier to get paid, of which the Ofgem website lists the energy suppliers that provide these. Your tariff supplier does not necessarily have to be the same supplier that provides your energy.

SEG suppliers are required to offer you a tariff but are free to determine the terms of the tariff that they offer. Mainly, this would be if it is flexible or fixed. Watch out for tariffs that change over time by regularly checking to make sure you remain on the most competitive one.

Big businesses that have access to storage devices, or domestic consumers with household batteries or electric vehicles both have the ability to import and export electricity. It could also be used to benefit massively from the SEG.

How much could my business save with SEG?

Ultimately this figure varies by consumption level and generation capability. As a larger business, there is likelihood that you will have greater ability to generate as well as much larger consumption to extrapolate benefits over.

Get paid for excess electricity

As part of the government initiative, if you generate your own electricity through renewable sources like sun or wind, you will be able to get paid for any surplus you generate. So, if you generate more than you use in your home or business, and export it back to the grid – you could receive export payments. Businesses with variable energy consumption or seasonal variation could make huge sums.

The SEG explained

The Smart Export Guarantee is a government obligation for larger suppliers to offer an export tariff that pays customers for excess electricity that they send back to the grid from renewable sources. The SEG replaces the Feed-in Tariff scheme which ended on the 1st of April for new applicants. The SEG has been available to customers from the 1st of January 2020.

What is needed for the SEG tariff?

Although we have already briefly covered this, we will now go into it in greater detail. You will need one of the following systems:

Solar photovoltaic systems – Solar panels are made up from solar cells with semiconducting properties that generate electric current through the photovoltaic (PV) effect. They then use an inverter to feed electricity into homes and businesses.

Hydro power – This uses the natural flow of water to generate energy. The flow of water creates electricity through a turbine. Types of installation vary depending on the individual site and the source of water to be used.

Onshore wind – With the installation of a wind turbine, kinetic energy from wind can be used to generate electricity that can be used in your business.

Micro-Combined Heat and Power – This can generate electricity and heat at the same time, with the intention of maximising the use of both instead of wasting either (which often occurs when energy is produced through more traditional methods).

Anaerobic digestion – Anaerobic digestion creates a biogas that can be used as a fuel or to generate electricity through a Combined Heat and Power (CHP) engine.

You must also:

Be the owner of the generation unit

Have a generation unit with a capacity of up to 5MW

Have a meter that is able to record energy that’s exported to the grid at a half-hourly level

Have an installation that is certified to the MCS (Microgeneration Certification Scheme) or similar

Have the ability to opt out of FiT payments or be prepared to lose your FiT export payment

Not be receiving SEG payments from another licensee

How do I apply for SEG?

Most suppliers offer an online application form that can be filled out electronically or sent alongside the required documentation in the mail. Usually processing takes 8-10 weeks and you must include:

A valid MCS Certificate​.

Proof of Identification (ID) – a photocopy of your passport, driving licence or another I.D. document issued by an official body​. 

Proof of address – a utility bill issued within the last three months, a local authority council tax bill for the current council tax year or a statement from your Bank or Building Society.

Any other proof of address.

A photograph of your smart meter or export meter, showing the meter serial number, make, model and export reading. This is not your generation meter.

If you’ve battery storage on site, a schematic diagram and Battery Storage Declaration form is often needed

If you’re VAT registered, a self-billing form should be provided.

How do businesses apply?

If your business is VAT registered then VAT will need to be added to your export payment. For this top happen, you’ll need to complete an application form, self-billing form, and declare any VAT received to HMRC during your tax return.

What happens once my business has applied to SEG?

Your chosen supplier will need to do some checks to make sure they have everything needed and in the correct form. If there isn’t one already set up then they will use an industry database to apply for an export MPAN (which helps to identify the export supply from your meter so that they are able to know how much energy you have exported). Once this is done then export payments can be calculated.

Once set up, an email link or paper mail will be sent with the terms and conditions which you will need to accept. Once accepted, your account will finalised and payments will begin.

Does my business need to send export readings?

Most often, you will be asked to provide a photo of your export readings every 6 months. This will also include your 12-month renewal data, just to check everything is all ok.

How often will my business receive SEG payments?

You are able to request payments more frequently, up to four payments a year. You will need to provide a photo with a valid meter reading before each payment.

My business energy is supplied by a different supplier than the one I’d like to set up my SEG with?

This is entirely possible to do and it is common to have different suppliers for electricity and for your SEG payments.

Energy Marketing and Trading

At Energy Marketing and Trading, we constantly have our finger on the pulse of the energy markets.  

We stay in the know and pride ourselves on our understanding of how global events and national developments will ultimately affect you, our clients. 

So, if you’re looking for a trusted partner to manage the purchasing of energy on your behalf, look no further than Energy Marketing and Trading.  

If you would like any more information on anything discussed in this article, or about any of our wonderful services then simply email info@energymarketingandtrading.co.uk  

If you would like to take the first step to saving massive amounts of money on your monthly and yearly energy outgoings, you can receive a free quote for your business by emailing enquiries@energymarketingandtrading.com

We look forward to hearing from you!