The UK's Feed-in Tariff (FiT) scheme closed to new applications on 31 March 2019, meaning new renewable energy installations can no longer join it. If you have an existing installation, your original agreement remains valid, and you will continue to receive payments under its terms. However, understanding how to manage these payments or explore alternatives like the Smart Export Guarantee (SEG) is crucial for making the most of your exported energy. This guide explains the FiT scheme, its closure, and how to navigate the current landscape for exporting renewable energy, including how Fuse Energy can help.
If you are looking to get paid for the electricity your home generates and exports to the grid, Fuse Energy offers an SEG tariff, paying 13p per kWh. Click here to switch to Fuse Energy today.
What was the Feed-in Tariff (FiT)?
The UK Feed-in Tariff (FiT) scheme was a government initiative designed to promote small-scale renewable electricity generation, such as from solar panels or wind turbines, by providing financial incentives to homeowners and businesses. It offered payments for every unit of electricity generated (generation tariff) and an additional payment for surplus electricity exported to the National Grid (export tariff). The scheme aimed to boost the adoption of green energy technologies across the country.
When did the FiT scheme close to new applications?
The Feed-in Tariff scheme officially closed to new applications on 31 March 2019. This means that any renewable energy systems installed after this date are not eligible to join the FiT scheme. The closure marked a shift in government policy towards new mechanisms for supporting renewable energy.
What happens if you have an existing FiT agreement?
If you already have a renewable energy system that was registered under the FiT scheme before its closure, your existing agreement remains valid. You will continue to receive payments from your FiT licensee under the original terms and rates agreed upon when you joined the scheme. Ofgem, the UK's energy regulator, oversees these agreements to ensure they are upheld.
What is the Smart Export Guarantee?
The SEG is the current government-backed scheme that replaced the FiT export tariff for new installations. It mandates that larger energy suppliers offer an export tariff to small-scale low-carbon generators. This means if you generate your own electricity, typically through solar panels, and export surplus power to the grid, your energy supplier will pay you for it.
How does SEG differ from FiT?
The primary difference between SEG and FiT lies in their structure and eligibility. FiT offered both a generation tariff (paid for all electricity generated) and an export tariff (paid for exported electricity). SEG, however, only provides payments for electricity exported to the grid. Another key distinction is that under FiT, the rates were generally fixed and guaranteed for the duration of the agreement, whereas SEG rates can vary between suppliers and may be subject to change.
Who is eligible for SEG payments?
To be eligible for SEG payments, your renewable energy system must meet certain criteria. This typically includes having an export Meter Point Administration Number (MPAN) and an MCS (Microgeneration Certification Scheme) certificate for your system. The MCS certificate confirms that your installation meets UK quality and safety standards.
Switching your FiT provider
You generally have the option to switch your FiT licensee if you wish. This process involves transferring your existing FiT agreement from one supplier to another. It's important to research different providers to ensure they can take on your FiT agreement and that the transfer process is smooth.
Considering a move from FiT to SEG
While your existing FiT agreement remains valid, you might consider if switching to an SEG tariff could be more beneficial. This decision depends on several factors, including your current FiT export rate compared to available SEG rates, and how much electricity you typically export. It's advisable to review your current FiT agreement details, including generation and export rates, and compare them with current SEG offerings from various suppliers.
The importance of an export MPAN
An export MPAN is fundamental for receiving SEG payments. It uniquely identifies the point at which your generated electricity is exported to the grid. Without an energised export MPAN, you cannot receive payments for your surplus energy.
How Fuse Energy helps generate your export MPAN
If you don't already have an export MPAN, Fuse Energy can assist you in generating one. You will need to provide two key documents: your DNO (Distribution Network Operator) connection approval (G98/G99 paperwork) and an MCS certificate for your renewable energy system. Fuse Energy will then forward these documents to the relevant DNO to initiate the generation of your export MPAN.
The SEG application process step-by-step
- Gather your documents: Collect your DNO connection approval (G98/G99 paperwork) and your MCS certificate.
- Contact Fuse Energy: Provide these documents to Fuse Energy, who will then work with your DNO to generate a non-energised export MPAN.
- Energise your MPAN: Once your export MPAN has been generated, it must first be energised by another supplier before you can switch to Fuse Energy for export payments. This is a crucial step as Fuse Energy cannot directly energise an MPAN it has helped generate.
- Switch to Fuse Energy: After your export MPAN is energised by another supplier, you can then switch your export payments to Fuse Energy to begin receiving our competitive SEG rate of 13p per kWh for electricity exported to the grid.
Fuse Energy offers a competitive SEG rate of 13p per kWh for electricity exported to the grid. We aim to empower homeowners to benefit from their generated energy, turning surplus into value.
We provide clear guidance and assistance in the often-complex process of generating an export MPAN, giving you more control over your export payments. Fuse Energy challenges the confusion around energy export schemes by offering a straightforward SEG application process and transparent rates. By facilitating SEG payments, we support the growth of distributed renewable generation, contributing to a more decentralised and efficient energy system.
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