Guaranteed Payment for Small Scale Energy Generation

In June 2019, new laws were introduced to ensure guaranteed payment for small scale energy generation for units exported into the National Grid by homes and businesses.

The new scheme is effective from 1 January 2020 for those generating low-carbon electricity. It follows on from the feed-in tariff scheme which is now closed to new entrants.

Guaranteed Payment for Small Scale Energy Generation

Homes and businesses with a capacity to produce 5MW or less of electricity from renewable sources will be able to feed it into the grid via smart meters, being paid for each unit they sell back. Smart meters must be able to report exports on a half-hourly basis.

Eligible renewable sources include:

  • solar photovoltaic
  • hydro
  • micro-combined heat and power (with an electrical capacity of 50kW or less)
  • onshore wind
  • anaerobic digestion

Licensed energy suppliers will bid competitively for the electricity produced by these small scale generators. Any suppliers with more than 150,000 customers on their books must offer at least one export tariff.

Good news for anyone who is considering installing any kind of renewable energy technology at their home or business. Not only could you help to reduce the cost of your own electricity bill and help to reduce global warming, but you might even make a profit too.

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