Under new laws introduced by the government, the Smart Export Guarantee (SEG) guarantees small businesses installing new micro combined heat and power (m-CHP) up to 50kW, such as the Adveco TOTEM, and solar photovoltaic (PV) panels will receive a payment for exporting electricity to the grid from the start of 2020.
Energy suppliers with more than 150,000 customers will be obliged to offer a minimum of one export tariff each to small-scale electricity generators for each unit of electricity they sell to the grid, based on readings taken from a suitable smart meter. Meters must be capable of providing export readings every half an hour, even if the tariff is not paid on a half-hourly basis. Those who supply half-hourly readings are expected to be offered a wider range of tariffs.
The legislation appears flexible and will enable energy suppliers to pay businesses for exporting electricity to the grid at times of peak demand, whether it was renewably generated or not. Looking to early export guarantee type tariffs currently available, the expectation is that suppliers will offer a payment of around 5.5p per kilowatt hour.
To qualify for the Smart Export Guarantee, small scale generators will need to have renewable energy systems installed to meet the standards of the Microgeneration Certification Scheme (MCS). Payment of the SEG will not be linked to or affected by any other grants or loans, with the exception of those benefitting from the earlier Feed-in Tariff scheme which closed at the end of March 2019. SEG will not apply to those businesses, but they can apply to swap from the feed-in tariff to SEG if they wish.
For businesses choosing Adveco’s TOTEM m-CHP, the greatest advantage has been the up to 29% reduction in energy costs. With the new SEG tariffs in place, m-Combined Heat and Power becomes an even more attractive option for those seeking to produce electricity onsite. The electricity output from the TOTEM m-CHP’s gas-powered engine not only provides electricity that can now be fed back to the grid at a profit, but also for each kWh of electricity generated approximately 2.5 kWh of free, high-grade heat is also recovered which can then be used for central heating or water heating in the building.
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