Smart Export Guarantee tariffs Vs market values
Research from Cornwall Insight examines the range of deals published compared to the current market values for the power - values sought via a commercial Power Purchase Agreements (PPAs) - and the FiT export rate.
On 1 January 2020, the Smart Export Guarantee (SEG) came into effect. The SEG mandates that electricity suppliers with over 150,000 customers offer at least one tariff for power exported to the grid from renewable generators smaller than 5MW. Obligated suppliers are required to provide tariffs with rates above 0p/kWh and available technologies are the same as those under the Feed-in Tariff (FiT) scheme.
More Headlines
- CATL Unveils TENER, the World's First Five-Year Zero Degradation Energy Storage System with 6.25MWh Capacity
- SAKOR TECHNOLOGIES RELEASES DYNOLAB™ GENV NEXT GENERATION TEST AUTOMATION CONTROLLER
- Happiest Minds collaborates with ENERCON, to drive sustainable wind energy solutions
- Repsol completes the construction of Frye Solar in the United States, its largest solar plant
- EchoSense study receives final approval from DOE
Research from Cornwall Insight examines the range of deals published compared to the current market values for the power - values sought via a commercial Power Purchase Agreements (PPAs) - and the FiT export rate.
Tim Dixon, Wholesale Team Lead at Cornwall Insight, said:
"So far, there are fixed rates across 14 suppliers, which range from 5.6p/kWh (Social Energy) to 0.5p/kWh (Utility Warehouse). Social Energy's export tariff* of 5.6p/kWh is comparable to the full market value of each of our example plants (including a solar site in the South West, wind in Southern Scotland and an Anaerobic Digestion (AD) plant in the Eastern region). However, the average tariff offered across the 14 suppliers standing at 3.5p/kWh falls well short.
"While some tariffs appear to be relatively high, with four suppliers offering rates above 5p/kWh, they alone are not likely to underpin the business case to invest in new small-scale renewables due to their short-term nature and links to variable market values for wholesale and embedded benefit values. For example, after April 2021, embedded benefit values are set to fall further amid reforms to network charging.
"The SEG market will continue to develop in the first quarter of this year, with several obligated suppliers still yet to publish their SEG rates. There are also many suppliers offering more lucrative tariffs alongside their SEG offerings that might make these deals more attractive."
Featured Product
Raptor Maps - The integrated operating system for end-to-end solar management
Operate autonomous drones and other robotics technology on your solar farms with Raptor Maps' robotics operations platform. Our end-to-end solution allows you to build and schedule data collection missions, to analyze collected data through our analytics engine, and to address identified issues through our remediation intelligence suite. From construction monitoring to substation inspections to SCADA-alert generation missions, Raptor Robotics gives your team unparalleled insights into the health and status of your project. Improve the safety, efficiency, and scale of your operations with Raptor Robotics.
