This week, the Department for Business, Energy and Industrial Strategy (BEIS) opened a consultation on the future for small-scale low-carbon generation.
The proposed ‘Smart Export Guarantee’ (SEG) would replace the existing ‘Feed-in Tariff’ scheme (FIT), with electricity suppliers paying new small-scale energy producers for excess electricity from homes and businesses being put back into the energy grid.
Energy and Clean Growth Minister Claire Perry said:
This new scheme could help us to build a bridge to the smart energy system of the future, with consumers firmly at its heart – not only buying electricity but being guaranteed payments for excess electricity they can supply to the grid.
It could also reduce strain on energy networks with a more decentralised and smarter local network delivering resilience much more cost effectively, unlocking innovative products for electric vehicles and home energy storage; a win-win for consumers and the environment and a key part of our modern Industrial Strategy.
This consultation considers future arrangements that would facilitate:
- a route to market which supports small-scale low carbon generation of electricity
- market innovation
- lowering of costs for consumers
- the promotion of the efficient use of electricity through price signals, for instance promoting export when the grid is experiencing high demand
Under the Smart Export Guarantee (SEG), government would legislate for suppliers to remunerate small-scale low-carbon generators for the electricity they export to the grid. The evidence gathered from this consultation will allow government to decide on whether, and how, to proceed with the SEG. This consultation is a result of a call for evidence.
An impact assessment is included as part of the consultation. The expected impacts are presented as a range to reflect the fact there is no central forecast.
The consultation closes on 5 March 2019.