Smart Export Guarantee tariffs

If you have solar panels, you may be able to get paid for electricity that your home generates but doesn't use.

The Smart Export Guarantee (SEG) requires certain electricity suppliers to offer eligible small-scale renewable electricity generators a payment for electricity exported to the grid.

SEG was introduced in January 2020, following the closure of the Feed-in Tariff (FiT) to new applicants in 2019.

How does the Smart Export Guarantee work?

When your solar panels generate electricity, your home can use that electricity first. If you're generating more electricity than you need, the surplus can be exported to the electricity grid.

With an eligible SEG tariff, your export meter records how much electricity you send to the grid and your SEG provider pays you according to its applicable export rate.

For example, if you exported 1,000kWh during a year and received an export rate of 10p per kWh, that would equate to £100 in export payments. Actual rates, eligibility requirements and payment arrangements vary between suppliers.

How much do SEG tariffs pay?

There isn't one standard SEG rate. Electricity suppliers set their own export tariffs, which means the amount you're paid can vary considerably between providers.

Some tariffs offer a straightforward rate for each kWh exported, while others may offer different rates depending on the time electricity is exported.

Higher export rates can also be subject to conditions. For example, a supplier may reserve its best rate for customers who:

Buy their electricity from the same supplier
Had their solar panels installed by that supplier or an approved installer
Have compatible battery storage
Use a particular smart or time-of-use tariff

For this reason, the highest advertised export rate isn't necessarily automatically available to every solar homeowner.

SEG tariffs change regularly, so always check current rates and eligibility directly with the supplier before making a decision.

Do I have to use my existing electricity supplier?

Not necessarily. Your SEG provider doesn't always have to be the same company that supplies the electricity you buy from the grid. However, some energy companies offer higher export rates to their existing electricity customers or customers who purchased their solar or battery system through them.

It's therefore worth considering the overall cost of your import and export arrangements, rather than choosing an energy supplier purely because it advertises a high export rate.

What do I need to qualify for SEG?

Eligibility requirements vary, but households will generally need:

An eligible renewable electricity generation system, such as solar PV
An export-capable meter capable of recording exported electricity
The appropriate documentation for the installation
To meet the technical and certification requirements of the chosen SEG provider

For most modern residential solar installations, a suitable smart meter is used to measure the electricity exported to the grid.

Your installer should be able to explain the documentation you'll receive following installation.

Do I need a solar battery to receive SEG payments?

No. You don't need a battery to export surplus solar electricity or receive eligible SEG payments. Without a battery, electricity that your solar panels generate but your home doesn't use can be exported directly to the grid.

With battery storage, you have more choices about what happens to your surplus electricity.

You may be able to: Use it immediately → store it for later → export surplus electricity to the grid.

Some modern battery systems and electricity tariffs can also allow households to manage when electricity is stored or exported.

Learn more about solar battery storage →

Is it better to use or export solar electricity?

This depends on your circumstances. Using solar electricity within your home means you avoid purchasing that electricity from the grid. Exporting electricity means you receive your applicable export rate.

The value of using rather than exporting electricity therefore depends on factors including your electricity import price, export tariff, household consumption and whether you have battery storage.

For example, if electricity costs significantly more to buy from the grid than you're paid to export it, using more of your own generated electricity may be particularly valuable.

What happened to the Feed-in Tariff?

The Feed-in Tariff (FiT) was introduced in 2010 and played an important role in encouraging the early adoption of residential solar power in the UK. The scheme provided eligible generators with payments associated with renewable electricity generation and export. FiT closed to new applicants in March 2019.

Households already registered under the scheme can continue receiving payments according to their individual FiT arrangements, but new solar installations cannot join FiT.

The Smart Export Guarantee subsequently introduced a new system for paying eligible households for electricity actually exported to the grid.

Compare export tariffs

SEG rates and conditions can change regularly, so homeowners should compare current offers before choosing an export provider.

Look beyond the headline pence-per-kWh rate and consider:

The export rate
Whether the rate is fixed or variable
Whether you must also buy electricity from the supplier
Whether the rate is restricted to customers who purchased solar from that company
Smart meter requirements
Battery requirements or restrictions
Payment frequency
Contract length
Exit conditions

Your solar installer may be able to help explain your export options, but you're generally free to investigate available SEG providers yourself.