Skip to content

The future for small-scale low-carbon generation

The Government believes that the small-scale low-carbon generation should not be exported to the grid for free and proposes a Smart Export Guarantee (SEG) which would place an obligation on electricity suppliers to purchase electricity exported to the grid from small-scale low-carbon generators.

Objectives of the consultation

The Government was consulting on its proposal for a mandatory supplier-led route to market: the Smart Export Guarantee (SEG). Under the SEG, the Government would legislate for suppliers to remunerate small-scale low-carbon generators for the electricity they export to the grid. Remuneration would be available to all the technologies currently eligible for the FIT scheme up to 5MW in capacity and would be based on the following design:

  • BEIS mandates that larger electricity suppliers (>250,000 domestic electricity supply customers) offer small-scale generators a price per kWh for the electricity they export to the grid. Smaller suppliers can opt to voluntarily provide a SEG tariff but must adhere to the rules and guidance associated with the SEG;
  • Suppliers would determine the tariff per kWh for remuneration, and the length of the contract;
  • Suppliers would be obliged to provide at least one export tariff;
  • Remuneration must be greater than zero and at times of negative pricing generators must not be required to remunerate suppliers for electricity exported to the grid;
  • Electricity exported to the grid from eligible generators must be metered - for domestic installations we expect smart meters to enable this;
  • No levelisation of costs is proposed but suppliers providing the SEG should be able to account for their administration costs in setting of the tariff levels;
  • Suppliers must register eligible installations for the settlement process and settle in accordance with the requirements in the Balancing and Settlement Code (BSC).

This consultation closed on 5 March 2019. The evidence gathered from this consultation will allow Government to decide on whether, and how, to proceed with the SEG.

Supporting papers

To download documents that supported this consultation, please follow the links below.

CIBSE response

CIBSE did not submit a response to this consultation as there were no significant comments from CIBSE Members.