Government confirms details and timeline for a Smart Export Guarantee
• Government to legislate for a Smart Export Guarantee – mandating most electricity suppliers to offer a tariff that pays homes and businesses exporting renewable electricity by 31st December 2019
• REA welcomes this positive step towards a more decarbonised, local, and cheaper power system
• Industry concern over lack of ambition in zero-minimum price and no contract length, in addition to delay in introduction following the closure of the Feed in Tariff
• Industry supportive of ensuring the policy is linked to the Microgeneration Certification Scheme, and that mechanisms are in place to review the scheme should it become apparent that generators cannot access competitive tariffs
Commenting on today’s confirmation about the detail of Government’s Smart Export Guarantee and their announcement they will legislate this week (10 June 2019) for its introduction, Dr Nina Skorupska CBE FEI, Chief Executive of the REA said:
“Small scale renewable power deployment is good for businesses, good for homes, and good for our climate. The Government confirming that they will legislate for a Smart Export Guarantee is very positive and acknowledges innovation in the market, how the falling price of batteries and renewable energy can support lower bills, and how local generation and storage can reduce grid constraints.
“There is growing popular demand for technologies such as solar and battery storage. The linking of this policy to the Microgeneration Certification Scheme is welcome and will help ensure a measure of consumer protection in this new era of deployment.
“Whilst we are fully supportive of encouraging innovation in tariff design we still believe that the policy should introduce a fair minimum price for generators. Minimum contract lengths should be required to give future generators certainty. These proposals do not ensure this.
“We have confidence that many independent suppliers will bring forward attractive tariffs for future homes and businesses who wish to self-generate power. We welcome the Government’s commitment to review the market in due course to ensure that the rest are following in step.
“Government must now take this into other areas of policy making, specifically around building regulations. The Smart Export Guarantee, combined with mandated solar and storage in new homes should play a key role in the forthcoming Part L review and considerations around taking new homes off the gas network”.
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Notes to editors
• The full Response to consultations on policy proposals for a Smart Export Guarantee, and on proposed amended licence conditions can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/807393/smart-export-guarantee-government-response.pdf
• The REA’s response to the Consultation on the Smart Export Guarantee taking place between January and March can be found here: https://staging.r-e-a.net/resources/pdf/345/190304_REA_SEG_Proposals_Response_FINAL.pdf
About the Renewable Energy Association (REA)
The REA is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, and power. The REA is a not-for-profit organisation that represents renewable energy and clean technology companies operating in over fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicle charging. Membership ranges from major multinationals to sole traders.
For more information, visit: www.r-e-a.net