Government details and timeline, legislating for a Smart Export Guarantee

The UK Government is to legislate for a Smart Export Guarantee and mandate most electricity suppliers to offer a tariff that pays homes and businesses exporting renewable electricity by 31 December 2019.

The Renewable Energy Association (REA) announces it welcomes this positive step toward a more decarbonised, local and cheaper power system. The REA acknowledges there is 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, but also believes the industry is 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, Nina Skorupska, chief executive of the REA says, “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,” who continues, “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,” says Skorupska, “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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