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New law guarantees payment for exporting electricity

11 June 2019

Facilities of all types with renewable energy installations of up to 5MW will be paid for electricity exported to the grid following the introduction of a new law.

This is the result of the government's Smart Export Guarantee (SEG), which includes electricity produced by both businesses and residential settings.

The owners of the premises or systems will receive payment for each unit of electricity sold to the National Grid, which will be tracked by smart meters.

Energy suppliers with more than 150,000 customers will now be legally obliged to introduce export tariffs by 1 January 2020.

According to Infrastructure Intelligence, suppliers such as Octopus and Bulb have already established so-called 'smart tariffs', with some schemes offering better rates than than the previous Feed-in Tariff (FiT) scheme.

The government received criticism for its running of the FiT, which quickly became over-subscribed and resulted in cuts being made and the scheme losing popularity as renewable energy suppliers and businesses went into liquidation.

With the FiT scheme primarily involving solar PV installations, it closed to new entrants at the end of March this year.

SEG is intended to encourage more businesses and homes to install renewable energy systems that will export energy to the grid.

With the price of solar PV panels having reduced by 50% in the last eight years, it is expected that the SEG will see added interest in this technology, particularly when including battery storage.

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