The SEG is one of the best things about generating your own solar power. But what is it, and how does it work?
The Smart Export Guarantee (SEG) is a UK government scheme that lets homeowners get paid for surplus electricity exported to the grid. It replaced the export element of the old Feed-in Tariff and gives solar panel owners and other small-scale renewable generators a way to earn from energy they don’t use themselves.
This guide explains how SEG works, who qualifies, how to apply, and what to consider if you’re thinking about joining.
What is the Smart Export Guarantee?
The SEG is a programme administered by Ofgem that requires energy suppliers to pay for excess electricity exported to the grid. Payments are made via SEG tariffs, which are set by the supplier. The scheme covers small-scale renewable generators in Great Britain, usually up to 5MW. Unlike older schemes, SEG focuses purely on the export of electricity, not the electricity you use yourself. Its purpose is to encourage low-carbon energy generation at home and provide a straightforward way for homeowners to benefit financially from renewable energy.
Here’s everything you need to know in a nutshell:
“`html
| Topic | Key Information |
|---|---|
| Who is eligible for the SEG? | Homeowners and small businesses in Great Britain with qualifying small-scale renewable installations. Northern Ireland is not included. |
| What technologies are eligible for the SEG? | Solar PV, wind turbines, hydro, micro-CHP, and anaerobic digestion systems that meet certification requirements. |
| What system do you need? | Installations must be MCS-certified (or equivalent), meet capacity limits (usually up to 5MW), and comply with safety standards. |
| How do you apply? | Choose a supplier with an SEG tariff, submit proof of certification and eligibility, and provide export meter details. Once approved, payments begin. |
| Do you need a smart meter for the SEG? | A smart meter or export meter capable of measuring exported electricity is typically required. |
| How are payments calculated? | Based on the number of kilowatt-hours (kWh) exported to the grid, as recorded by your meter. |
| How much are you paid? | Rates vary by supplier. Typical tariffs in 2026 range around 5p–7p per kWh, though some are higher or lower. |
| Fixed vs variable tariffs | Some suppliers pay a fixed export rate, while others use variable rates linked to wholesale prices or time-of-use structures. |
| Does SEG pay for self-used electricity? | No. Payments apply only to electricity exported to the grid, not energy used within your property. |
| Can you switch suppliers? | Yes. You can compare tariffs and switch to another SEG supplier, subject to their application process. |
| Can SEG run alongside other schemes? | Yes. It can operate alongside energy efficiency grants and, in some cases, legacy Feed-in Tariff arrangements. |
| Is there a minimum payment rate? | Yes. Suppliers must pay more than zero for exported electricity, but there is no fixed national rate. |
Who is eligible?
SEG is open to homeowners and small businesses with eligible renewable systems. Technologies that qualify include solar PV, wind turbines, hydro, micro-CHP, and anaerobic digestion units. Installations must be MCS-certified, meet capacity limits, and comply with safety standards. Only Great Britain residents are eligible, so Northern Ireland is excluded. Even if your system is small, as long as it meets the rules, you can participate. SEG eligibility is primarily about the technology and certification rather than household size or energy usage.
How SEG payments work
SEG payments are based on the amount of electricity you export. Each supplier sets its own export tariff, which must always be above zero, but rates vary widely. Some suppliers offer fixed rates for the energy you export, while others provide variable tariffs that change over time. The payment is calculated using export meter readings, which track exactly how much energy leaves your home for the grid. It’s important to note that SEG only pays for exported electricity, not what you consume yourself, so energy-saving measures and battery use can affect how much you earn.
Applying for an SEG tariff
To get a SEG payment, you first need to choose a supplier that offers SEG tariffs. You’ll need proof of your system’s eligibility, including an MCS certificate and confirmation that your installation can export energy. Some suppliers may also require a smart or export meter. Once your paperwork is approved, your supplier sets up the tariff and starts payments. Homeowners are advised to compare multiple suppliers, as rates can differ significantly. Application processes are generally straightforward but following each supplier’s specific requirements carefully ensures a smooth experience.
SEG and solar battery systems
Many homeowners with batteries ask how SEG interacts with stored energy. Generally, suppliers only pay for electricity exported directly to the grid, not electricity stored in a battery and used later. Some tariffs may allow partial payments for battery exports, but rules vary, so checking your supplier’s policy is essential. Batteries can still help reduce your energy bills by shifting consumption from peak times, but they won’t automatically increase SEG payments unless the electricity is exported.
SEG rates and how much you might receive
Tariffs vary depending on the supplier and market conditions. In 2026, typical rates range from 5p to 7p per kWh, though some suppliers offer higher or lower rates. How much you earn depends on the size of your system and how much electricity you export. A small solar array may generate a few hundred pounds a year, while larger systems can earn more. While SEG isn’t a huge income source, it’s a way to make additional use of energy you would otherwise not use, and combined with self-consumption savings, it can improve overall returns.
Combining SEG with other support and schemes
SEG can work alongside other schemes, like ECO4 or other energy efficiency grants, but it doesn’t replace any Feed-in Tariff payments you may already receive. If you installed your system before SEG existed, you may still receive legacy payments alongside SEG once your export qualifies. Understanding how SEG interacts with other incentives ensures you’re maximising financial benefits and not missing out due to overlapping rules or misunderstandings.
