Generating income from renewable energy
There are a few potential sources of income from small-scale renewable energy generation:
- Smart Export Guarantee
- Green energy certificates
- Green gas support scheme
Smart Export Guarantees (SEG)
Since 01 January 2020 feed-in tariffs have been replaced by the Smart Export Guarantee (SEG). This applies to small scale renewable energy producers who have a generating capacity of up to 5MW.
The Smart Export Guarantee (SEG) allows businesses in Scotland to get paid for surplus renewable electricity they export to the grid.
SEGs aren’t available in Northern Ireland however; specific energy suppliers may have their own export tariffs. Contact your energy supplier for more details.
Eligible technologies include:
- Solar panels
- Wind turbines
- Hydro electricity
- Anaerobic digestion
- Micro combined heat and power (micro-CHP)
Energy Saving Trust: Smart Export Guarantees
Ofgem: Smart Export Guarantee (SEG)
Green energy certificates
If you operate a small-scale energy generator you may be able to make money by selling green energy certificates to energy suppliers.
You can save money by using the certificates to get exemptions from some environmental taxes, such as the climate change levy.
The certificates include:
- renewable obligation (RO) certificates (Phased out, but for previous participants ROs will continue, new participants will be able to apply to the Contracts for Difference (CfD) support mechanism)
- levy exemption certificates
- renewable energy guarantee of origin (REGO).
GOV.UK: Renewable Obligation certificates
Green Gas Support Scheme
The Green Gas Support Scheme replaced the Renewable Heat Incentive (RHI) which closed to new applicants on 31 March 2021.
The Green Gas Support Scheme aims to facilitate and encourage renewable generation of biomethane from anaerobic digestion for injection into the gas grid.
Green Gas Support Scheme and Green Gas Levy | Ofgem
Interest-free loans
A range of grants and loans are available to help businesses switch to renewable energy.
- In Northern Ireland. see GOV.UK: Funding to help your business become greener
- In Scotland, interest-free loans are available from Business Energy Scotland: SME loan scheme
The Green Network for Businesses in Scotland
In Scotland, Business Energy Scotland has developed the Green Network for Businesses. This tool allows you to search by postcode for green businesses in your area. All these businesses have installed energy saving or energy generating technologies.
Once you identify the business that has installed the green technology you are interested in, contact them to organise a visit.
BES: Green Network for Business