There are two payment schemes for exporting solar-generated electricity to the grid - the Simplified Credit Treatment (SCT) scheme and Enhanced Central Intermediary Scheme (ECIS). The scheme that applies to you will depend on who you are buying electricity from.
If you are buying electricity at the regulated tariff from SP Group (i.e. non-contestable consumer), the SCT scheme applies. Under this scheme, you will receive payments at the regulated tariff rate less the grid charge. This deduction is because the grid charge comprises electricity infrastructure maintenance and electricity transportation costs incurred by SP Group, not by the consumer who is exporting the electricity.
If you are buying electricity from a retailer (i.e. contestable consumer), the ECIS applies. You will receive payments at the prevailing half-hourly wholesale electricity price (WEP), which is the same payment that all electricity generators receive. Similar to payments under the SCT scheme, this payment does not include the grid charge. However, unlike the regulated tariff, which is fixed and reviewed quarterly, the WEP could vary half-hourly depending on real-time market demand and supply conditions. This means your payments under the ECIS can vary as the WEP may be higher or lower than the prevailing regulated tariff.
For more information on the WEP, please visit the Energy Market Company website.
