ScottishPower launched two Smart Export Guarantee tariffs, SMART GEN and SMART GEN +, on 16 February 2023. Ofgem's SEG annual report records SMART GEN as an ongoing variable tariff at 12.0p/kWh1. The bundled companion tariff, SMART GEN +, is listed at 15p/kWh.
The Smart Export Guarantee is the government-backed scheme that "enables small-scale low-carbon electricity generators in Great Britain (known as SEG generators) to receive payments from electricity suppliers (known as SEG licensees) for the electricity they export to the National Grid"1. It came into force on 1 January 2020 under the Smart Export Guarantee Order 2019, and tariffs offered under it must be at a rate greater than 0p/kWh at all times1. Policy responsibility passed to the Department for Energy Security and Net-Zero in February 2023, having previously sat with the Department for Business, Energy & Industrial Strategy; Ofgem administers the scheme1.
Ofgem's report on SEG Year 3, covering 1 April 2022 to 31 March 2023, states that "the highest unbundled tariff available came from ScottishPower with their 'SMART GEN' tariff at 12p/kWh"1. The highest rate of any kind in that year was Octopus's bundled "Tesla Outgoing July 2022 v1" tariff at 25.48p/kWh, which was "only available to customers with solar photovoltaic (PV) who installed a 'Tesla Powerwall'"1. The lowest tariff offered was 1p/kWh, from the supplier E1. Across the year there were 39 tariffs from 14 SEG licensees; 24 were unbundled and 15 bundled1.
| Tariff | Type | Rate |
|---|---|---|
| ScottishPower SMART GEN | Unbundled | 12.0p/kWh |
| ScottishPower SMART GEN + | Bundled | 15p/kWh |
| Octopus Tesla Outgoing July 2022 v1 | Bundled | 25.48p/kWh |
| E SEG January2020v.1 | Unbundled | 1p/kWh |
The average tariff rate for installations registered during SEG Year 3 was 8.77p/kWh, a fall of almost 28% from SEG Year 21. Eligibility rules cap installations at a maximum permitted capacity of 5 megawatts (MW), except micro-CHP, which must be no more than 50kW total installed capacity; installations up to 50kW must present a Microgeneration Certification Scheme certificate or equivalent1. Suppliers with at least 150,000 domestic electricity customers must offer a SEG tariff, while smaller suppliers may do so voluntarily1.
Why it matters for households
For a household with solar panels, an export tariff is the route by which electricity sent to the grid earns money rather than being given away. The rate matters because it sets the income per unit exported, and the gap between the best and worst rates in SEG Year 3 was wide: 12p/kWh against 1p/kWh1. Whether a bundled tariff is available depends on conditions such as buying import electricity from the same supplier or owning particular products, so the headline rate is not always open to every household1. The distinction between bundled and unbundled offers is set out in the Smart Export Guarantee tariffs that pay the highest export rate guide, and the wider choice of fixed and export options is relevant when comparing what a supplier offers. Households in Scotland can compare offers in the energy tariffs in Scotland guide, and the Feed-in Tariff versus Smart Export Guarantee comparison explains how the older scheme differs. Export income is separate from what a home pays for the electricity it imports, so the two sides of a bill need to be read together.
What happens next
Ofgem's report does not state an end date for either ScottishPower tariff; SMART GEN is recorded as ongoing1. No further changes to these tariffs have been reported.
Sources1 cited
- Smart Export Guarantee (SEG) Annual Report, ofgem.gov.uk