The Smart Export Guarantee (SEG): What you need to know

If you’re a renewable generator looking to sell your energy, you’ve probably come across the Smart Export Guarantee (SEG). It offers a reliable way to get paid for the energy you export to the grid, with suppliers setting their own tariffs.

While SEG works well for some, it’s not suited to every generator. Before signing up, it’s important to weigh the pros and cons and explore all your options.

What is SEG?

The Smart Export Guarantee is a government-backed tariff that requires licensed electricity suppliers to pay small-scale renewable generators for the energy they export to the grid. It was introduced in 2020 as a replacement for the Feed-in Tariff (FiT), and is available for renewable technologies like solar, wind, and hydropower.

The benefits of SEG

For some generators, the Smart Export Guarantee can be a straightforward way to earn revenue. It provides a guaranteed payment for exported energy, ensuring that smaller renewable generators get paid for what they produce.

One of its major advantages is supplier flexibility. Since suppliers set their own tariffs, generators have the ability to shop around for the best rate. 

But while SEG works well for some, it’s important to read the small print. 

The truth is, many generators who chose to sell their energy through a supplier that offers SEG find out too late that it’s not the deal they expected. Here’s why.

The downsides of SEG that no one talks about

1) You might not actually qualify

Suppliers use SEG to attract generators, but many don’t explain that eligibility depends on strict conditions. If your generation volume is too high or you don’t meet certain technical requirements, you won’t receive the SEG payments you expected.

2) Even if you qualify, it can take months to set up

Approval and implementation of SEG payments are notoriously slow, leaving generators waiting months before they see any return. In the meantime, you’re stuck in a contract that might not be delivering the value you were promised.

3) You could lose other incentives

One of the biggest pitfalls is that opting into SEG means losing any Feed-in Tariff (FiT) payments you’re already receiving. Many generators don’t realize this until it’s too late, resulting in lower earnings overall.

4) Payments are often inconsistent and poorly managed

Many generators report messy invoicing, delayed payments, and a lack of transparency from suppliers. Instead of a simple, predictable revenue stream, SEG can turn into a frustrating administrative headache.

A better alternative: tem. and RED Plus

At tem., we do things differently. Renewable Energy Direct offers a transparent, reliable way for generators to get paid for their renewable energy, without the uncertainty or red tape.

Because we bypass the wholesale market, cutting out middlemen and added fees from the transaction, we give generators a fairer, more stable return for their energy – with export pricing that’s market-leading and competitive with SEG rates.

But the real game-changer is RED Plus. Through the government’s Exempt Supply scheme, RED Plus allows generators to earn even more per MWh by reducing certain Non-Commodity Costs (NCCs) – extra charges that typically eat into generator profits. 

RED Plus has had a 100% acceptance rate so far, and we can fast-track the process to ensure you start benefiting from increased earnings without delays. It’s tried and tested and is already delivering significant financial benefits for our generator partners.

For generators, this means more revenue, greater price stability, and protection from market fluctuations – all without any extra effort. Your contract remains secure, your payments are predictable, and you get more value for the energy you generate.

Get in touch today to see what rate you could lock in.