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UK adopts new laws to encourage small-scale low-carbon generation

Installation of rooftop solar panels. Source: Solarplicity (www.solarplicity.com).

June 10 (Renewables Now) - The UK government is today introducing new laws that guarantee payments from energy suppliers for green homes and businesses that export low-carbon power to the grid.

The country is enacting the so-called Smart Export Guarantee (SEG), which concerns small-scale electricity producers with solar, wind or other forms of renewable generation not exceeding 5 MW of capacity. Using smart metres, these generators will get paid for each unit of electricity fed into the grid.

The new programme will see suppliers bidding competitively for that electricity. More specifically, it will place a legal obligation on energy suppliers with more than 150,000 customers to set export tariffs by January 1, 2020. They will be free to choose the form of the tariff they offer.

The SEG will succeed the feed-in tariff (FiT) scheme, which closed to new entrants at the end of March. It, however, will not pass on costs to consumers, the Department for Business, Energy & Industrial Strategy pointed out.

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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