Are you considering a solar panel installation for your home? Solar panels allow you to take charge of your energy usage, effectively using the sun’s natural energy to power your home. A solar panel installation allows homeowners to rely less on expensive electrical companies and create their own clean energy instead. Not only can solar panels help to reduce your electricity bills, they can become a passive income stream too. That’s right, your solar panels can make you money! Keep reading to learn more about the Smart Export Guarantee (SEG) and how investing in solar panels can boost your income.
How Do Solar Panels Work?
Before we jump into discussing the SEG, let’s first have a closer look at how solar panels work. In simple terms, solar panels create electricity by converting the sun’s energy into a sustainable energy source for your home. Solar panels are installed on the roof of a property, and modern engineering means your home can be powered by solar energy regardless of the light or weather conditions.
Solar panels are made up of layers of PV (photovoltaic) cells and a semi conductant. When exposed to sunlight, these layers respond, and an electrical field is created. A direct current of electricity is generated and passed through an inverter. Whilst travelling through the inverter, the direct current is converted into an alternating current. After this process is complete, the freshly made solar energy can be used to power your home. If your solar panels are creating more energy than you need, the surplus can be kept in a storage system or sold to National Grid.
What Is A Smart Export Guarantee?
As we just mentioned, if your solar panels are creating an excess of solar energy, you can choose to sell this to the National Grid. Tariffs were first introduced in the UK as part of the Energy Act 2008 and came into effect in 2010. This tariff was introduced by the British government to encourage more homeowners to invest in renewable energy sources, and the scheme wasn’t exclusive to homes with solar panels. Creating energy using the following methods could also lead to FIT (feed-in-tariff) qualification:
- Wind turbines
- Hydro turbines
- Anaerobic digestion
- Micro-combined heat and power
The exact rate homeowners are paid varies as the FIT is not fixed and different companies offer differ prices. All tariff rates will change with inflation and the best way to keep up to date is to visit the Ofgem website.
How To Earn From Your Solar Panels In 2023
The FIT scheme closed in April 2019, but payments will be paid to existing applicants for at least 20 years. To qualify for the FIT scheme, your installation needed to have a peak output of 5 megawatts. According to the Energy Saving Trust, homeowners benefitting from the FIT scheme could earn approximately £150 a year. This figure was estimated using a fixed amount for every unit of electricity generated by your solar panels. FIT rates were fixed and would depend on the technology you were using to create energy.
The FIT scheme allowed homeowners to earn from their solar panels, and this is still possible in 2023. While the FIT scheme is no longer taking new applications, the Smart Export Guarantee was set up as a replacement in January 2020. The SEG tariff is not based on estimates, instead, homeowners are paid for every unit they feed back into the National Grid.
If you are considering a solar panel installation, you will need to apply for the SEG to sell any surplus energy created. Here are the eligibility criteria to receive the Smart Export Guarantee:
- Your home must have a smart metre, and it must be equipped to send export readings every 30 minutes
- Your installation and installer must be certified through the MCS (microgeneration certification scheme)
- You must not already be receiving export payments from the FIT scheme
The SEG is similar to the FIT scheme, but the amount you earn is based on accurate figures and not estimates. When you invest in a Jewel Renewables solar panel installation, you can apply for the SEG and start selling your electricity as soon as you have been approved. The Government has plenty of information about solar panels and SEG tariffs the .GOV website, and you can also use the Energy Saving Trust calculator to discover how much money you could earn by selling unused energy.
Invest In a Jewel Solar Panel Installation Today
At Jewel Renewables, we supply and install solar panels in Surrey and the surrounding areas. With a modern solar panel installation, homeowners can live a more environmentally friendly life and enjoy cheaper energy bills. Alongside relying less on expensive energy suppliers for power, homeowners with solar panels can enjoy additional income by selling their excess energy back to the National Grid. To learn more about our solar panel installations, contact the Jewel team today at 01252 939 597 or fill in our online contact form. Invest in Jewel solar panels and enjoy several benefits, including a happier bank balance!
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