MCS, SEG & VAT
Do I need a MCS or Flexi-Orb certified installer?
- If you intend to sell your energy back to the grid, either an Orbi-Flex or MCS certified installer will have to do your install, register the system and issue you with a certificate which will be required by your energy supplier if you sign up for SEG.
- Make sure you fully understand the role of e.g. the MCS as in essence the MCS can ONLY investigate, arbitrate and potentially withdraw an installer's license to operate if they find it appropriate to do so.
- Be aware, these organisations don't offer any financial protection if something goes wrong with your "MCS certified installer"
- The MCS standards for a certified installer can be viewed here where you can get an idea what to expect from them.
SEG the FIT replacement
- The original FIT and generation incentive payments were subsidies intended to implement a "quick fix" to a government's lagging renewable energy production ambitions. It has now been discontinued and replaced with SEG, which typically pays customers selling energy back to the grid rates more in line with wholesale prices or typically less compared to what they as suppliers already can buy their energy at.
- In March 2011 FIT paid approx 54p/kWh for energy sold to the grid to entice households to install solar panels. This has since been replaced by the SEG (smart export guarantee) paying between 3-7p/kWh, substantially less than you buy a kWh for today.
- Each supplier now sets their own SEG tariff, which can vary widely and may also be dependent of the other services you already have with them. Taking this into account, 100% self consumption and energy storage may make a lot more sense today if you are a heavy consumer, but make sure you fully understand how to decide, which is best or you.
- A 0% VAT incentive applies only to new complete PV system purchase and the installation thereof. (Different terms apply to Northern Ireland)
- Adding storage to a system after it was installed will attract VAT at the current full 20%.