A Guide to the Smart Export Guarantee (SEG): Getting Paid for Your Solar Energy

If you have installed renewable energy technology at home, such as solar panels, you can earn money by selling your surplus electricity back to the grid. The Smart Export Guarantee - or SEG - is a government-backed programme that makes this possible. It requires larger energy suppliers to pay households for the renewable power they export, creating a competitive market for your green energy.

Launched on 1 January 2020, the SEG replaced the previous Feed-in Tariff (FiT) scheme for new applicants. This guide explains how the SEG works, whether you’re eligible, and how to find the best tariff to maximise the return on your investment. Understanding how much energy you might generate is a key first step, which we cover in our guide, ‘How Many Solar Panels Do I Need?’.

How Does the Smart Export Guarantee Work?

When your home’s renewable system - like solar panels on your roof - generates more electricity than you are using at that moment, the excess power doesn’t go to waste. Instead, it is automatically exported to the National Grid. To get paid for this, you need to sign up for an SEG tariff with a licensed electricity supplier.

A smart meter is essential for the scheme, as it measures the exact amount of electricity you export, typically in half-hourly intervals. Your chosen SEG supplier uses these readings to calculate your payments, which are usually issued quarterly. You don’t have to get your export tariff from the same company you buy your electricity from, giving you the freedom to shop around for the best rate.

Unlike the old FiT scheme, which had its rates set by the government, the SEG allows suppliers to set their own prices. The only rule is that the rate must be greater than zero. This has led to a competitive market with two main types of tariff:

• Fixed SEG tariffs: These offer a flat rate per kilowatt-hour (kWh) for a set period, often 12 months. This gives you certainty over how much you’ll earn for each unit you export.

• Variable SEG tariffs: The price you get per kWh can change over time, sometimes linked to wholesale energy prices. This means your earnings could go up or down during your contract.

Are You Eligible for the SEG?

To qualify for payments under the Smart Export Guarantee, your household in England, Scotland or Wales must meet a few key criteria. The scheme is designed for small-scale renewable generation, so your system’s total installed capacity (TIC) must be 5 megawatts (MW) or less. For micro combined heat and power (micro-CHP) systems, the cap is 50 kilowatts (kW).

The eligible technologies include:

• Solar photovoltaic (solar PV)

• Wind turbines

• Micro combined heat and power (micro-CHP)

• Hydropower

• Anaerobic digestion (AD)

Crucially, your installation must be certified under the Microgeneration Certification Scheme (MCS) or an equivalent standard. This certification is proof that your system has been installed correctly and safely by a qualified professional. Finding the right person for the job is vital, and our guide ‘How to Choose a Solar Panel Installer’ can help. You will also need a smart meter capable of measuring your exported electricity. If you are still receiving export payments from the old FiT scheme, you cannot receive SEG payments at the same time.

What About Battery Storage?

Households with a home battery storage system are fully eligible for the SEG. A battery allows you to store surplus solar energy to use later, for example during the evening, which can save you more money on your import bills than exporting it. The SEG only pays for electricity that is actually sent to the grid, so if your battery is storing most of your excess generation, your export volumes will be lower. However, some advanced tariffs are designed specifically for homes with batteries, offering higher export prices during peak times.

Comparing SEG Tariffs: Who Pays the Most?

SEG rates vary significantly between suppliers and can change often. The best deals are frequently ‘tied’ tariffs, which require you to buy your import electricity from the same supplier. Untied tariffs are available to anyone, regardless of their import supplier, but often pay less. Ofgem maintains a list of all licensed SEG suppliers you can choose from.

The table below shows a selection of SEG tariffs available as of September 2026. These rates are for illustrative purposes and should always be confirmed directly with the supplier before signing up.

Some suppliers, like Octopus Energy with its ‘Flux’ tariff, offer time-of-use rates. These pay different prices depending on the time of day, with higher rates often available during evening peak hours when grid demand is highest. These can be particularly lucrative for homes with battery storage, as you can charge your battery with cheap off-peak power and sell it back at a profit.

How to Sign Up for an SEG Tariff

Once you have a certified installation and a smart meter, signing up for an SEG tariff is a simple process.

1. Confirm Your Eligibility: Double-check that your renewable energy system meets all the requirements, especially that you have your MCS certificate number to hand.

2. Compare and Choose a Tariff: Research the tied and untied tariffs on the market to find the best rate for your situation. Consider whether a fixed or variable rate is better for you.

3. Submit an Application: Go to your chosen supplier’s website and fill out their online application form. You’ll need to provide your personal details, MCS certificate, and smart meter information.

4. Application Processing: The supplier will verify your details and set up your export account. This process can take up to four weeks.

5. Start Earning: Once your account is active, you will automatically start earning money for every unit of electricity you export to the grid.

Frequently Asked Questions

What Is the Difference Between the Smart Export Guarantee (SEG) and the Feed-in Tariff (FiT)?

The main difference is that the SEG only pays for the electricity you export to the grid. The older FiT scheme, which closed to new applicants in 2019, paid a ‘generation tariff’ for all the electricity you generated - even what you used yourself - as well as an ‘export tariff’ for surplus power. Furthermore, SEG rates are set by individual suppliers in a competitive market, whilst FiT rates were set by the regulator, Ofgem.

Can I Switch My SEG Tariff to Another Supplier?

Yes. Just like with your main energy supply, you are free to shop around and switch to a different SEG supplier at any time to get a better rate. You are not locked into a single provider.

Do I Have to Have a Smart Meter to Get an SEG Tariff?

Yes, a smart meter that can provide half-hourly export readings is a mandatory requirement for the SEG scheme. This is so your supplier can accurately measure how much electricity you are exporting to the grid.

Is the Smart Export Guarantee Available in Northern Ireland?

No, the SEG scheme applies only to Great Britain (England, Scotland, and Wales). Northern Ireland has its own separate arrangements and support schemes for homeowners generating renewable energy.

Is the SEG Worth It?

The Smart Export Guarantee provides a valuable opportunity for households with renewable energy systems to reduce their electricity bills and earn an income from their investment. Whilst the rates may not be as high as the previous FiT scheme, the competitive market means it pays to shop around. By choosing the right tariff - especially if you have a home battery - you can ensure you’re getting the best possible price for the clean energy you send back to the grid.