Smart Export Guarantee Guide

The Smart Export Guarantee (SEG) is the UK government scheme that pays you for surplus solar electricity exported back to the national grid. If you have a solar panel system installed by an MCS-certified installer, you’re entitled to earn money for every unit of electricity your panels generate but your home doesn’t use, and with the right energy supplier, those payments can make a meaningful contribution to your system’s payback time.

This guide covers everything you need to know about the SEG: how it works, which energy suppliers offer the best rates in 2026, how to register, and how to maximise your export earnings. Whether you’re already generating solar power or considering installation, understanding the SEG is essential to getting the full financial benefit from your system.

Key Takeaways

• The Smart Export Guarantee (SEG) pays you for surplus solar electricity exported to the grid, and you need an MCS Installation Certificate to register
• Energy suppliers with 150,000 or more domestic customers are required by law to offer at least one SEG tariff
• Rates vary significantly between suppliers, from under 5p/kWh to over 15p/kWh depending on the tariff type and supplier
• You must have a smart meter or half-hourly meter to register for SEG, as suppliers need to measure actual export
• The SEG replaced the Feed-in Tariff (FiT) in January 2020. If you registered for FiT before that date, you can stay on it and are not affected by the SEG
• Flexible and time-of-use SEG tariffs can pay considerably more than fixed rates, but require you to be strategic about when you export

What is the Smart Export Guarantee?

The Smart Export Guarantee is a UK government-mandated scheme requiring larger energy suppliers to pay small-scale renewable energy generators for electricity they export to the National Grid. It launched on 1 January 2020, replacing the Feed-in Tariff export payment element that closed to new applicants in April 2019.

Unlike its predecessor, the SEG has no fixed government rate. Instead, energy suppliers set their own export tariffs and compete for customers. The government’s role is simply to mandate that eligible suppliers must offer at least one SEG tariff and that the rate paid must always be greater than zero. Beyond that, the market sets the price.

This competitive structure means rates vary considerably between suppliers and change over time. The best approach is to compare current tariffs before registering and to revisit your tariff annually, as better deals may become available as the market evolves.

How Does the Smart Export Guarantee Work?

The Basic Mechanism

Your solar panels generate electricity whenever there’s daylight. Your home uses what it needs (running appliances, charging devices, heating water) and any surplus flows back through your meter and into the grid. Under the SEG, your energy supplier measures this exported electricity and pays you for it at your agreed tariff rate.

Payments are typically made quarterly or monthly, depending on your supplier. The amount you receive depends on two factors: the SEG rate you’re on (in pence per kilowatt-hour) and how much surplus electricity your system actually exports. A household that uses most of its own generation will earn less from SEG than one that exports a large proportion, though self-consumption is generally the more valuable outcome financially.

Smart Meter Requirement

To register for the SEG, you must have a smart meter or a half-hourly export meter installed at your property. This is because suppliers need to measure your actual export in half-hour intervals, rather than estimating it. If you don’t already have a smart meter, your energy supplier can arrange installation. It’s free to have one fitted and is a standard part of the SEG registration process.

MCS Certificate Requirement

Your solar installation must have been completed by an MCS-certified installer, and you must have an MCS Installation Certificate for your system. This certificate is the industry-recognised proof that your installation meets UK standards. Without it, no SEG supplier will register you for export payments. If you had solar installed by a non-MCS installer, you won’t be able to access the SEG.

Which Technologies Qualify for the SEG?

The SEG covers a range of small-scale renewable and low-carbon technologies, not just solar. Eligible systems include:

• Solar photovoltaic (PV) panels: the most common qualifying technology for domestic installations
• Wind turbines: small-scale domestic or community wind installations
• Micro combined heat and power (micro-CHP): systems that generate both heat and electricity simultaneously
• Hydropower: small-scale water turbines where applicable
• Anaerobic digestion: biogas systems generating electricity from organic waste

For the vast majority of UK homeowners, solar PV is the relevant technology. The maximum capacity for domestic SEG registration is 5MW, though in practice most home solar systems are between 3kWp and 6kWp.

SEG Tariff Types Explained

Fixed Rate Tariffs

A fixed rate tariff pays you the same pence per kWh for everything you export, regardless of when you export it or what time of day it is. These are the simplest tariffs to understand and manage. You don’t need to think about when to run appliances or when your battery discharges. You just export and get paid.

Fixed rates tend to be lower than the best flexible rates, but they provide certainty. They suit households that don’t want to actively manage their energy exports or who don’t have battery storage to shift when they export.

Flexible and Time-of-Use Tariffs

Flexible tariffs pay different rates at different times of day, reflecting the wholesale value of electricity on the grid. Exporting during peak demand periods (typically early evening) earns considerably more per kWh than exporting at midday when solar generation across the grid is at its highest.

These tariffs reward homeowners who have battery storage and can shift their export to high-value periods. If your system generates during the day, stores surplus in a battery, and then exports during the evening peak, you can significantly increase your SEG income compared to a fixed rate tariff. Octopus Energy’s Outgoing Octopus is the most well-known tariff in this category.

Variable Rate Tariffs

Some suppliers offer variable rate tariffs that track wholesale electricity prices over time. These can deliver higher returns when electricity prices are elevated but offer less predictability. They’re less common than fixed or flexible tariffs.

Which Suppliers Offer SEG Tariffs?

Energy suppliers with 150,000 or more domestic customers are legally required to offer at least one SEG tariff. Smaller suppliers may offer tariffs voluntarily. The key suppliers offering SEG tariffs in 2026 include:

• Octopus Energy: offers Outgoing Octopus, a flexible tariff tracking wholesale prices that typically delivers among the highest export rates available. Rates vary with the market but have consistently outperformed fixed alternatives for households with battery storage.
• British Gas: offers a fixed-rate SEG tariff. Straightforward and reliable, though typically at the lower end of the rate range compared to flexible alternatives.
• E.ON Next: offers both fixed and flexible options. The E.ON Next Drive tariff integrates well for households with electric vehicles alongside solar.
• EDF Energy: offers a fixed SEG tariff. Competitive among fixed-rate options.
• Scottish Power: offers a fixed export tariff. Available to both Scottish Power energy customers and those with other suppliers in some cases.
• OVO Energy: offers an export tariff at a competitive fixed rate.
• Utility Warehouse: offers a fixed-rate SEG tariff for their customers.

Rates change regularly as the energy market evolves. Always check current rates directly with suppliers or via the Ofgem SEG supplier comparison tool before registering. You don’t have to be an energy customer of a supplier to register for their SEG tariff. Your export tariff and your import tariff can be with different suppliers.

How Much Can You Earn from the SEG?

The amount you earn from the SEG depends on your system size, how much you export (rather than self-consume), and your tariff rate. A typical UK home with a 4kWp solar system generates around 3,400-3,800 kWh per year. A well-insulated home that self-consumes around 50% of its generation would export 1,700-1,900 kWh annually.

At a fixed rate of 5p/kWh, that export earns roughly £85-£95 per year. At a more competitive rate of 15p/kWh via a flexible tariff with battery optimisation, the same export volume earns £255-£285. Over a 25-year system lifetime, the difference between the best and worst SEG tariffs can amount to several thousand pounds.

These figures illustrate why choosing the right tariff matters, and why battery storage can significantly improve your SEG income. Battery storage lets you do two things: self-consume more during the day (avoiding import costs) and export strategically during peak price periods (maximising SEG income). The combination can reduce your energy bills substantially.

SEG Eligibility: Who Can Register?

To be eligible for the Smart Export Guarantee, you must meet all of the following criteria:

• Your renewable energy system must have a capacity of 5MW or less (virtually all domestic solar installations qualify)
• Your installation must have been completed by an MCS-certified installer and hold a valid MCS Installation Certificate
• You must have a smart meter or half-hourly export meter installed at your property (or agree to have one fitted)
• Your system must not already be receiving Feed-in Tariff export payments (if you registered for FiT before its closure, you can’t also receive SEG payments for the same system)

There is no deadline to register for the SEG. You can register at any time after your system is installed, even if years have passed since installation. However, payments only begin from the date of registration. There are no backdated payments for electricity already exported, so registering promptly after installation is in your financial interest.

How to Register for the Smart Export Guarantee

Registration is handled directly with your chosen SEG supplier, not with the government. The process typically takes 2-4 weeks from application to first payment and involves the following steps:

1. Gather your documents: You’ll need your MCS Installation Certificate, your system’s details (technology type, capacity in kWp, installation date), and your property details including meter point reference number (MPRN).
2. Choose your SEG tariff: Compare current rates from eligible suppliers. Remember, your SEG supplier doesn’t need to be your electricity supplier, so shop around for the best export rate.
3. Apply online or by phone: Most suppliers have an online SEG registration form. Submit your MCS certificate number and system details.
4. Smart meter confirmation: The supplier will confirm you have a compatible smart meter or arrange installation. This step can take several weeks if a meter change is required.
5. Receive confirmation and start earning: Once registered, your meter data begins feeding into the supplier’s system and export payments begin accruing. Most suppliers pay quarterly in arrears.

Your MCS-certified installer should be able to guide you through this process or handle the initial registration on your behalf, and it’s worth asking them before they finish the installation.

SEG vs Feed-in Tariff: What’s the Difference?

The Feed-in Tariff (FiT) scheme closed to new applicants in April 2019. If you registered before that date, you remain on the FiT and receive both generation payments (for all electricity your system produces) and export payments (for a deemed 50% of generation, regardless of actual export). FiT payments are government-guaranteed for 20 years from your registration date.

The SEG differs in several important ways. There are no generation payments: you only get paid for what you actually export. Export is metered precisely rather than estimated. Rates aren’t government-guaranteed and can change when your tariff period ends. And critically, you can switch SEG supplier if a better rate becomes available.

If you’re on the FiT, you should not switch to the SEG. The FiT’s combination of generation payments plus guaranteed export rates almost certainly delivers more income than SEG-only payments. Staying on FiT is the right decision for anyone still receiving those payments.

Maximising Your SEG Income

Self-Consume First, Export Second

Self-consumption of solar electricity is almost always more valuable than exporting it. When you use your own solar generation, you avoid paying import rates (typically 22-30p/kWh). When you export, you receive SEG payments (typically 5-15p/kWh). The gap means every kWh you self-consume rather than export saves you more than it would earn in export payments.

Maximise self-consumption by running dishwashers, washing machines, and other high-draw appliances during peak generation hours (roughly 10am-3pm on sunny days). Some smart home systems and immersion heater diverters can automate this, sending surplus generation to hot water storage rather than exporting it.

Add Battery Storage

Battery storage is the single most effective way to improve both self-consumption and SEG income. During the day, your battery charges from surplus solar generation instead of exporting it. In the evening, the battery powers your home instead of importing from the grid. Any remaining stored energy can then be exported during high-rate periods if you’re on a flexible tariff.

Battery storage typically adds £5,000-£10,000 to installation costs but can significantly reduce your annual energy bills and increase SEG income. If you’re considering solar, it’s worth calculating whether a combined solar-and-battery system makes financial sense for your household.

Choose the Right SEG Tariff

The difference between a 4p/kWh fixed tariff and a 15p/kWh flexible tariff is significant over time. If you have battery storage, a flexible tariff that rewards peak-time exports is almost certainly worth pursuing. If you have no storage and export whenever your panels produce surplus, a fixed rate may be simpler and still competitive.

Review your tariff annually. The SEG market has matured since 2020 and new tariff options continue to emerge. What was the best option when you registered may no longer be competitive two years later.

Case Study: Increasing Export Income with Battery Storage

Background

A homeowner in Cheshire had a 4.2kWp solar system installed in 2021. They registered for a fixed-rate SEG tariff at 5.24p/kWh and received around £90 per year in export payments. Their energy bills remained significant despite the solar installation, as most generation happened while they were at work and their home was empty.

Project Overview

After researching battery storage options and SEG tariff alternatives, the homeowner decided to add a 10kWh battery to their existing system and switch to a flexible export tariff. The battery was fitted by their original MCS installer.

Implementation

The battery installation took one day. The installer updated the MCS documentation and assisted with switching the SEG registration to a flexible tariff. A home energy management system was configured to charge the battery from solar during the day and discharge during evening peak hours, with any remaining stored electricity exported during the peak window.

Results

In the first full year after the battery addition, the homeowner’s SEG income increased from around £90 to approximately £240 due to the combination of higher export rates during peak periods and more strategic export timing. Electricity import costs also fell significantly as the battery covered evening demand that previously required grid electricity. The total saving on energy bills plus increased SEG income covered the battery installation cost within eight years, which is shorter than the battery’s 10-year warranty period.

Expert Insights From Our Solar Panel Installers About the Smart Export Guarantee

“One of our senior solar panel installers with over 18 years of experience in the UK renewable energy sector says that many homeowners register for the first SEG tariff they find and then forget about it. The SEG market has changed considerably since 2020. Suppliers have introduced new tariff types, rates have moved, and flexible tariffs have become more accessible to ordinary homeowners. We always advise customers to review their export tariff annually, just as they would review their import tariff. The difference between the best and worst SEG rates in the current market can add up to several hundred pounds over a typical year, and switching is straightforward once you know your options.”

Frequently Asked Questions

Summing Up

The Smart Export Guarantee is a straightforward way to earn money from surplus solar electricity you’d otherwise give away for free. The key steps are: ensure your installation has a valid MCS certificate, get a smart meter fitted, compare current tariffs from eligible suppliers, and register with the one offering the best rate for your circumstances.

Don’t settle for the first tariff you find, and don’t leave registration any longer than necessary. Every month without SEG registration is export income you can’t recover. The scheme has no end date and no capacity limit, and it’s available to all qualifying installations for as long as the system operates.

If you’re still considering solar installation and want to benefit from the SEG from day one, contact us for a free quote and we’ll connect you with MCS-certified installers covering your area.

Updated April 2026