Feed-In Tariffs (FIT) and Smart Export Guarantee (SEG) Explained

How does a feed-in tariff work?

If you meet the criteria, you will be paid for the renewable energy you generate and export to the National Grid, aiming to encourage energy consumers across the country to invest in renewable infrastructure.

To have a feed-in tariff you must have one (or more) of the following renewable pieces of infrastructure up to a capacity of 5MW or up to 50kW for Micro-CHP:

 

•  Solar panels 

 

•  Hydro turbines

 

•  Anaerobic digestion

 

•  Wind turbines

 

•  Micro combined heat and power (CHP)

 

You’ll remain ‘connected’ to your traditional energy supply, which allows the renewable energy you generate yourself to be topped up with conventional electricity.

 

You’ll use smart meters or an Export meter (capable of measuring at half-hourly intervals) to track the energy you collect. The data from the net meter will allow your energy supplier to track how much energy you’re using, and if there’s a surplus, it’ll be sent back to the National Grid, which will result in payment.

 

When you’ve got the appropriate infrastructure installed, get in contact with an energy supplier offering a feed-in export tariff and register with them.

 

How much money can I make from a feed-in tariff? 

Though the FiT is now closed, there were two types of tariffs:

 

•   - Generation tariff - a rate for each unit of electricity generated

 

•   - Export tariff - a rate for each unit exported to the electricity grid

 

However, feed-in tariffs work slightly differently with the Smart Export Guarantee (SEG).

 

Smart export tariffs vary between energy suppliers, but the typical amount you could expect would be around 3-4p per kWh exported to the electricity grid.

 

Which suppliers offer a feed-in tariff?

Below are some of the more popular feed-in tariffs (now referred to as smart export) available with some of the major energy suppliers:

 

E.ON feed-in tariff

E.ON remains a FiT licensee which means they continue to service existing feed-in tariff customers who took out tariffs before the FiT scheme came to a close.

 

E.ON now offers a smart export tariff under the SEG. Customers looking for a smart export feed-in tariff with E.ON must apply by contacting [email protected] with the necessary documentation.

 

E.ON offers the following smart export tariffs:

 

Fix & Export v1

Open to all generators up to a maximum capacity of 5MW2

•   - 12-month fixed-term export tariff

 

•   - No exit fees

 

•   - Export price of 3 pence per kWh

 

Fix & Export Exclusive v1

Exclusively for any new E.ON solar sales after 1 January 2020.

•   - 12-month fixed-term export tariff

 

•   - No exit fees

 

•   - Export price of 5.5 pence per kWh

 

British Gas feed-in tariff

British Gas’s feed-in tariff is called the Export and Earn Flex. This tariff is a variable tariff which means the export rate fluctuates. British Gas will pay you for the electricity you export at a rate of 3.2 pence per kWh.

 

Scottish Power feed-in tariff

Scottish Power's feed-in tariff is called the Smart Export Variable tariff and typically pays its customers 4p per kWh. However, this price per unit payment is often subject to change because as the title suggests, this particular feed-in tariff is variable, not fixed.

 

SSE feed-in tariff 

SSE has simply called theirs the Smart Export Tarif. This is a variable tariff offering an export rate of 3.5p per kWh sent back to the National Grid.

 

EDF feed-in tariff

EDF Export+Earn Tariff offers an export rate of 1.5p for each unit of kWh you export back to the grid, which is quite a bit lower than the other export rates we’ve seen so far.

 

What happens to my feed-in tariff if I move? 

Your feed-in tariff registration would have only been accepted because of the renewable technology at your premises, so unless you are moving to a house that meets SEG criteria again, you won’t be able to transfer your export tariff over.

 

You can of course attempt to move your renewable infrastructure if possible, but before you go through all the hassle of doing so, we recommend contacting your supplier and asking them.

 

The people buying your home are essentially buying the feed-in tariff too, and you will need to notify the energy supplier you are with about the change of ownership.

 

What is the Smart Export Guarantee? 

Ofgem not only manages the price cap but has established something called the Smart Export Guarantee (SEG), which is an obligation for licensed electricity suppliers to offer a tariff and make payments for low-carbon electricity exported to the National Grid. The SEG came into force on 1 January 2020, replacing the Feed-in Tariff scheme.

 

The Smart Export Guarantee differs from the Feed-in Tariff scheme in that SEG licensees determine the rate they will pay for exported electricity, alongside contract length and other contract terms.

 

The Feed-in Tariff scheme is still going for those who signed up before it was replaced by the Smart Export Guarantee, but only when your FiT contract ends will you need to switch over to the SEG.