Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure energy providers pay fair prices for energy generated by private individuals' solar panels; and if he will make an assessment of the potential merits of bringing forward a scheme to allow consumers to save the excess energy they generate during warmer months for when it is required during winter.

The Smart Export Guarantee (SEG) is a cost-reflective market led mechanism, helping to level the playing field for small-scale low-carbon generation.

To enable the SEG to be market based and encourage innovation, a key feature is to allow suppliers to set the tariff levels and structure. Whilst payment must be greater than zero at all times of export it is for suppliers to determine the value of the exported electricity. The retail cost of electricity would not be a fair price to pay because it includes not only the wholesale costs, but also network costs, levies and supplier operating costs.