Renewable Energy: Smart Export Guarantee

Department for Business, Energy and Industrial Strategy written question – answered on 28th February 2022.

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Photo of Julian Sturdy Julian Sturdy Conservative, York Outer

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department has plans to increase the export tariff for renewable energy under the SEG scheme at the same rate as the rise in the energy price cap; and what assessment he has made of the effect on small-scale renewable electricity generation in the event that the export tariff is not increased in that way.

Photo of Greg Hands Greg Hands The Minister of State, Department for Business, Energy and Industrial Strategy

The Smart Export Guarantee (SEG) is a market led mechanism, to help level the playing field for small-scale low-carbon generation. It provides a route to market for any excess energy exported to the grid following closure of the Feed-in Tariffs scheme.

To enable the SEG to be market based and encourage innovation, one of the key features is to allow suppliers to set both the tariff levels and structure. The Department believes the market has responded positively within the SEG’s first reporting period but will continue to monitor for signs of price competitiveness and innovation.

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