January 9 (Renewables Now) - Тhe UK government on Tuesday opened a consultation on a plan to introduce a Smart Export Guarantee (SEG) under which energy suppliers would remunerate small-scale low-carbon generators for the electricity they export to the grid.
The proposal presented by the Department for Business, Energy & Industrial Strategy (BEIS) comes ahead of the closure of the feed-in tariff (FiT) scheme in April 2019. It seeks to compensate homeowners and businesses that generate their own electricity through installations currently eligible for the FIT scheme with capacities of up to 5 MW.
The SEG will see larger electricity suppliers, with more than 250,000 customers, offer small-scale power producers a price per kWh for the electricity they export to the grid. The price and length of the contract will be set by the suppliers, which will be obliged to provide at least one export tariff.
“It was clear that no-one should be asked to give away electricity for free, and we strongly advocated for a market based solution and are pleased this approach has been adopted. Whilst the details around the transition from the former subsidy scheme will be important, this signal of support for the sector from Government will help our members continue to provide smarter, cleaner and cheaper electricity in the decade to come,” commented James Court, Director of Policy and External Affairs at the Renewable Energy Association.
The CEO of the Solar Trade Association (STA), Chris Hewett, welcomed the news that small generators will be compensated for the power they contribute to the system, but stressed that it is important to ensure the remuneration comes at a fair market rate.
The consultation is open until March 5, 2019.