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MCS responds to SEG confusion and sets out its future role

MCS has clarified that regulated Smart Export Guarantee tariffs require an MCS certified installation, while non-regulated export tariffs remain at energy companies' discretion, and has set out planned scheme changes.

A newspaper on a kitchen table beside a model of rules and regulation

MCS published a statement on 13 September 2023 addressing what it described as speculation about its future role in relation to electricity export tariffs, and confirming that its recent consultation on proposed changes to the scheme drew a significant response from across the sector1.

Ian Rippin, chief executive of MCS, set out the position on the Smart Export Guarantee. Under the scheme, all licensed energy companies with 150,000 or more customers must provide an export tariff, a statutory requirement intended to ensure that consumers as small-scale generators are paid for renewable electricity they export to the grid1. These regulated export tariffs require an MCS certified installation evidenced with an MCS certificate, and an energy company cannot offer its regulated SEG tariff to anyone without one1.

Rippin added that since the Smart Export Tariff Order (2019) came into force on 1 January 2020, energy companies have always had the discretion to offer additional, non-regulated export tariffs, and can offer these non-SEG tariffs to any customer1. MCS stated that because it is the only route to a regulated SEG export tariff, consumers are not restricted in their choice of tariff provider should they wish to move to another energy provider in future1. The statement also said that many lenders and insurance companies require MCS for renewable technologies installed at a policyholder's address1.

On the scheme's own future, MCS said it has committed to reducing complexity and focusing less on paperwork and back-office functions and more on the quality of installations delivered to customers, with obligations to safeguard consumers placed at the heart of the scheme1. It reported that since July 2022 its contractor base for solar PV installation has risen from 1,491 to 2,768, an 86 per cent increase, and that this year it has seen the highest average monthly installations in scheme history1.

"Our recent consultation on proposed changes to MCS attracted a significant response from across the sector. In the coming weeks we will share what MCS will become next year as a result of this feedback."
Ian Rippin, CEO of MCS1

The statement also carried supporting comments from Solar Energy UK, NAPIT, NICEIC and the Electrical Contractors' Association. Chris Hewett, chief executive of Solar Energy UK, said ensuring increasing demand for residential solar and energy storage is delivered by installers working to a high standard of quality is essential for consumer protection and the country's net-zero ambitions, and that Solar Energy UK recommends all installers hold up to date MCS certification1. David Cowburn, chief operating officer of NAPIT and deputy chair of the Competent Persons Forum, said there is a risk that clauses dealing with missing certificates are misinterpreted, and that PV installations are notifiable in their own right under the Building Regulations1.

Why it matters for households

The distinction MCS draws is between the regulated SEG tariff, which requires an MCS certificate, and non-regulated export tariffs, which energy companies may offer to any customer at their discretion1. For a household with solar panels, that means the certificate is the document that secures access to the statutory export route and, MCS argues, the ability to switch tariff provider later without losing that access1. The statement does not set out what rates any tariff pays; those are set by energy companies and are not reported here.

MCS also frames certification as wider than export payments. It says MCS certified contractors can only use MCS certified products tested for safety and performance to the scheme's product standards, and that non-MCS installations do not carry that link to certified products1. It states that MCS is the UK's only standards backed quality assurance scheme under ISO 17065, and that it has powers to compel an installer to put things right or remove their ability to trade as MCS certified1. The eligibility requirements for the SEG, including metering and notification standards, sit alongside the certification requirement.

What happens next

MCS said it will share in the coming weeks what the scheme will become next year as a result of feedback to its consultation1. No date for that announcement has been reported.

Sources1 cited
  1. Why MCS matters & a response to SEG confusion - MCS, mcscertified.com