Scottish Power has almost tripled its Smart Export Guarantee (SEG) rate for customers with solar panels installed by the company, in a further sign of competition returning to the energy retail market.
The legacy energy retailer has confirmed that customers on its SmartGen tariffs will see the SEG rate increase from 5.5p/kWh to 15p/kWh for every unit of power they export.
It further confirmed it is more than doubling its SEG rate for consumers who have had their solar panels installed by a third party, to 12p/kWh. The rates were initially introduced last month but are only now being promoted.
Scottish Power said consumers could save up to £1,267 a year in England and Wales – potentially 91% on their energy bills.
Furthermore for those exporting to the grid at up to 15p/kWh, export payments could be as high as £618 a year.
Andrew Ward, chief executive of Scottish Power Retail, said: “We know that decarbonising our homes is not only good for the planet but will also provide long-term savings for our customers too.
“Solar panels allow customers to generate their own electricity and get paid for any excess that can be exported back to the grid.
“I’m delighted we’re able to almost triple the rate of return through our SmartGen+ Tariff for customers who’ve purchased their solar panels from us, and would encourage anyone with solar installed, or who might be thinking about having either solar panels or a battery installed, to make sure they are maximising the savings that may be available.”
With wholesale prices having substantially fallen in recent months, and predictions that the price cap will fall below £2,000 later this year, there has been talk about the possibility of competition returning to the market.
Ovo Energy recently unveiled a new 12-month fixed tariff for its existing customers priced at £2,275, below the government’s £2,500 Energy Price Guarantee.
“For many customers, a long term fix provides protection against continued energy price uncertainty,” the company said.
Yet despite wholesale costs falling, not everyone in the sector is convinced that now is the time to return to fixed price deals.
Speaking to Utility Week recently EDF’s managing director of retail, Philippe Commaret, said that offering competitive energy tariffs to customers would not be in their best interests at the moment.
He said: “If I can secure my customers with fixed priced offers, it’s much better for me, rather than to have the uncertainty with the standard variable tariff.
“But that’s not what we are minded to do because we do not believe that it’s in the interest of customers. The interest of customers is to benefit from the wholesale market prices going down.”