Actually the legislation says that deeming only applies if there is no registered export meter in use. So if the supplier registers the SmartMeter for export as well as import then the readings from it would have to be used for calculating FiT export payments and the deeming would stop for that particular installation.
I would expect most, if not all, suppliers to register any SmartMeters they install over the coming years for both import and export where there is existing microgeneration on site. Assuming they get their act together and don't fit SmartMeters that are not capable of measuring export - which has already been happening.
Until a few days ago, I had assumed that if you'd signed up for FiTs with no export meter (<30kWp), then you got deemed output and go paid 50% of what you generated for export.
Bearing in mind that MOST people actually export more than 50% (even the 2.5kWp systems) because it is difficult to use it when it is generated (without an ImmerSun or similar device) then the FiT providers / energy companies were actually on to a good thing.
I THOUGHT that was what the legislation said, however TedM (many thanks) pointed out that this is what it actually says:
What DECC say
http://www.decc.gov.uk/assets/decc/.../1_20100312140940_e_@@_factsheetondeeming.pdf
"Strictly as an interim measure, payment of export tariffs to generators of 30kW or less of total installed capacity will be made on the basis of deemed or estimated exports."
Why?
"In the Government’s response document, we confirmed our intention that all FITs payments should be made on the basis of electricity metered in accordance with the strict requirements of the Electricity Act 1989 and subsequent legislation and regulations. This is because there is a need to ensure that all electricity flows benefiting from FITs, including exports, should be subject to accurate measurement to ensure value for money and the integrity of the scheme. This will become increasingly important as exports from small scale generators will become a larger part of the electricity market."
What Ofgem say as guidance to the FiT Providers:
"Exported electricity can be deemed for installations with a TIC of 30kW or less where no export meter exists."
They also explain about the Generator's (the PV System owner) choices for taking or not export payments.
So what will happen when Smart Meters are installed?
No one could tell me! - I spoke with Ofgem who referred me to the new Energy Saving advice line who were completely clueless, and they referred me to teh EST's website:
Feed-In Tariff schemes explained - UK Feed-In Tariffs and solar FITs
Where it says:
"Export tariff: you will get a further 4.5p/kWh (non-solar PV from 1 December 2012) from your energy supplier for each unit you export back to the electricity grid, so you can sell any electricity
you generate but don't use yourself. This rate is the same for all technologies. At some stage smart meters will be installed to measure what you export, but until then it is estimated as being 50% of the electricity you generate (only systems above 30kWp need to have an export meter fitted, and a domestic system is unlikely to be that big)."
So does this mean that ANYONE who has a smart meter retrospectively installed that is capable of measuring export will suddenly NOT be on deemed export?
If so they will have fun with one of our sites which has three systems installed all on different tariffs

or does it mean for NEW systems?
Can I REFUSE to have a Smart Meter installed? - It looks like it!
OFFICIAL: Smart meters won't be compulsory ? The Register
"A DECC spokesman told us:This is not actually new. While smart metering brings significant benefits, it will not be an offence for householders to refuse to accept a smart meter and we have made it clear that we do not expect suppliers to seek an entry warrant simply to fit smart metering equipment."
and Smart meters for energy to be voluntary - Telegraph
So it looks like our advice to PV owners should be to REFUSE a smart meter.