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Assured Energy Outlook: Issue 28 – January 2019

Government proposes route to market for small-scale renewables

The government came forward with a new scheme to incentivise deployment of small-scale renewables, called the Smart Export Guarantee (SEG), on 8 January. The announcement followed the government closing the predecessor Feed-in Tariff scheme to new applications from April 2019.

The SEG is intended to guarantee new small-scale renewable electricity providers – such as small businesses or households – payment from suppliers for the electricity they export to the grid. Larger electricity suppliers (with at least 250,000 domestic electricity supply customers) would have to offer small-scale generators a price per kWh for electricity exported back to the grid.

The exported power would have to be metered, with suppliers obliged to provide at least one export tariff to small-scale generators. Suppliers would also determine the tariff per kWh for remuneration and the length of the contract. Responses to a government consultation on the SEG are invited by 5 March.

The announcement was welcomed by the renewable energy industry. Solar Trade Association Chief Executive Chris Hewitt gave the proposals “a cautious welcome”, adding: “We are very pleased the government is unequivocal; small generators will be compensated for the power they contribute to the system, but the issue remains providing remuneration at a fair market rate.”

The Renewable Energy Association added: “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.”.


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