This is good news for the residential solar industry in the UK. It comes just weeks after the Government confirmed the export tariff would be culled despite huge opposition from the industry. It seems the industry lobbying has worked and we will soon be moving to a market based mechanism for paying solar households for the energy they export to the grid. There is a concern though that there is no floor price on this so we will have to see how this plays out. Whilst many will look to install solar by the end of March this year, at least there is a path for a longer term future of the export tariff.
Under the new scheme, which will be called the smart export guarantee (SEG) programme, households and businesses installing new solar panels will be guaranteed compensation for any power provided to the grid. Solar-generated power put onto the grid through the scheme will be bid for by electricity suppliers - a clause BEIS claims will give exporters the best market price and greater control on how their power is brought and sold. “This new scheme could help us to build a bridge to the smart energy system of the future, with consumers firmly at its heart – not only buying electricity but being guaranteed payments for excess electricity they can supply to the grid,” Energy Minister Claire Perry said. “It could also reduce strain on energy networks with a more decentralised and smarter local network delivering resilience much more cost-effectively.