Smart Export Guarantee Explained – SEG Rates and How to Apply

What Is the Smart Export Guarantee?

The Smart Export Guarantee (SEG) is a UK government-mandated scheme that requires large electricity suppliers to offer a tariff for small-scale renewable electricity exported to the national grid. It came into effect on 1 January 2020, replacing the old Feed-in Tariff (FiT) which closed to new applicants on 31 March 2019.

Under the SEG, any licensed electricity supplier with more than 250,000 domestic customers must offer at least one export tariff with a rate greater than zero. Smaller suppliers can participate voluntarily, and several do.

The key difference from the Feed-in Tariff: the SEG only pays for electricity you export to the grid, not for the total amount you generate. This makes self-consumption even more important — every kWh you use directly saves you the full retail electricity price (around 24.5p/kWh), whereas exported kWh earn considerably less.

Current SEG Rates Compared (2026)

SEG rates vary significantly between suppliers and tariff types. Here are the main options available:

SEG rates as of Q1 2026 — rates are subject to change, always verify with the supplier directly

Supplier	Tariff Name	Rate (p/kWh)	Type	Notes
Octopus Energy	Agile Outgoing	Variable, up to 15p	Variable	Half-hourly rates tied to wholesale price; best during 4-7pm peak
Octopus Energy	Fixed Outgoing	4.1p	Fixed	Simple fixed rate, good for predictability
Octopus Energy	Flux	Variable	Variable	Requires Octopus import tariff; battery-optimised
British Gas	Export & Earn Flex	3.2p	Fixed	Available to all; no requirement to be a British Gas customer
EDF	Export Payments	3.0p	Fixed	Standard rate; straightforward terms
E.ON Next	Next Export	3.0p	Fixed	Available to E.ON Next customers
Scottish Power	Smart Export	3.5p	Fixed	Must be a Scottish Power customer for electricity
Shell Energy	Export Tariff	3.0p	Fixed	Basic fixed rate

Fixed vs Variable Tariffs

Fixed tariffs pay the same rate for every kWh you export, regardless of when you export it. They are simple and predictable — you know exactly what you will earn.

Variable tariffs like Octopus Agile Export change every half hour, reflecting wholesale electricity market prices. You earn more when demand is high (typically 4–7pm) and less during off-peak periods. On some half-hours, the rate can drop close to zero.

Variable tariffs suit homeowners who:

• Have a battery and can choose when to export (exporting stored solar during the evening peak)
• Are comfortable with fluctuating income
• Want to maximise earnings and are willing to monitor rates

Fixed tariffs suit homeowners who:

• Want simplicity and predictable income
• Do not have a battery
• Export most electricity during daylight hours (when variable rates tend to be lower)

Eligibility Requirements

To receive SEG payments, you must meet these criteria:

1. MCS-Certified Installation

Your solar panels must have been installed by an MCS-certified installer using MCS-certified products. MCS (Microgeneration Certification Scheme) is the UK’s quality assurance standard for small-scale renewable energy.

If your system was installed by a non-MCS installer, you are not eligible for the SEG. This is the single most important requirement, so always verify MCS certification before commissioning an installation. You can check an installer’s certification at mcscertified.com.

2. Smart Meter or Export Meter

You need a smart meter (SMETS2) or an approved half-hourly export meter. The meter must be capable of recording half-hourly export data, which the SEG supplier uses to calculate your payments.

If you do not yet have a smart meter, contact your electricity supplier to arrange a free installation. Under the smart meter rollout, all suppliers must offer smart meters to their customers.

3. System Size

There is no minimum system size for the SEG. Even a small 1kW system qualifies. The maximum capacity is 5MW, which is well above any residential installation.

4. Location

The installation must be at a property in England, Scotland or Wales. Northern Ireland has separate arrangements and the SEG does not apply there.

5. Technology

The SEG covers several renewable technologies:

• Solar PV (the most common)
• Wind turbines
• Micro-CHP (combined heat and power)
• Hydro
• Anaerobic digestion

How to Apply for the SEG

Applying for the SEG is straightforward. Follow these steps:

Step 1: Confirm Eligibility

Ensure your installation is MCS-certified. You should have received an MCS certificate from your installer after the installation was completed. You will also need your system’s MCS installation number.

Step 2: Ensure You Have a Smart Meter

Contact your electricity supplier to confirm you have a SMETS2 smart meter installed. If not, request one — it is free under the national smart meter rollout.

Step 3: Choose a SEG Supplier

Compare the rates in the table above and choose the supplier that offers the best deal for your circumstances. Remember: you do not have to use the same supplier for your SEG payments and your electricity supply. Shop around.

Step 4: Apply Online

Most SEG applications are completed online. You will typically need:

• Your name and address
• MCS installation certificate number
• Meter Point Administration Number (MPAN) — found on your electricity bill
• Smart meter serial number
• Details of your generating equipment (capacity, technology type, installation date)

Step 5: Start Earning

Once approved, your SEG payments begin from the date your application is accepted. Most suppliers pay quarterly, directly into your bank account.

How Much Can You Earn?

Your SEG income depends on three factors: your system size, how much you export (rather than self-consume), and your SEG rate.

Based on south-facing system in southern England, 50% export rate | *8p avg = approximate average for Octopus Agile with battery optimisation

System Size	Annual Generation	Exported (50%)	Earnings at 3p/kWh	Earnings at 4.1p/kWh	Earnings at 8p avg*
3 kWp	2,700 kWh	1,350 kWh	£40	£55	£108
4 kWp	3,600 kWh	1,800 kWh	£54	£74	£144
6 kWp	5,400 kWh	2,700 kWh	£81	£111	£216
10 kWp	9,000 kWh	4,500 kWh	£135	£185	£360

SEG vs Feed-in Tariff: What Changed?

The Feed-in Tariff (FiT) was far more generous than the SEG, but it was introduced when solar panel costs were five to ten times higher than today. Here is how they compare:

Comparison of FiT and SEG schemes

Feature	Feed-in Tariff (FiT)	Smart Export Guarantee
Active period	April 2010 – March 2019	January 2020 – present
Generation payment	Yes (paid for all kWh generated)	No (only exported kWh)
Export payment	Yes (fixed, guaranteed rate)	Yes (rate set by supplier)
Rate (early years)	15-43p/kWh generation + 3-5p export	3-15p/kWh export only
Guaranteed duration	20-25 years	No guaranteed duration
Funded by	Levy on all electricity bills	Energy suppliers (commercial decision)
System cost at launch	£10,000-£14,000 per kWp	£1,500-£2,000 per kWp
Typical payback	7-10 years (with subsidies)	8-12 years (without subsidies)

The important takeaway: although the SEG pays less per kWh, solar panels cost a fraction of what they did when the FiT launched. The payback period is comparable, and you are not reliant on a subsidy that could be reduced or removed.

Maximising Your SEG Income

Strategy 1: Choose the Right Tariff

If you have a battery, a variable tariff like Octopus Agile Export can significantly boost your earnings. Store solar energy during the day and export it during the 4–7pm peak when rates are highest.

Without a battery, a fixed tariff like Octopus Fixed Export at 4.1p/kWh gives you the best predictable return, since most of your exports happen during off-peak daytime hours when variable rates are lower.

Strategy 2: Add a Battery

A battery lets you shift exports from low-value daytime periods to high-value evening peaks. The additional SEG income from this strategy can be £50–£150 per year, which helps (but does not alone justify) the battery investment. The main battery benefit remains increased self-consumption.

Strategy 3: Review Your Tariff Annually

SEG rates change frequently. Set a reminder to compare rates every 12 months and switch if a better deal is available. Switching is free and usually takes two to four weeks.

Strategy 4: Monitor Your Export Data

Use your smart meter data (via your supplier’s app or the smart meter In-Home Display) to understand your export patterns. If you are exporting heavily during low-rate periods, adjust your energy usage to self-consume more during those times.

Common Questions About the SEG

Can I Have Solar Without Joining the SEG?

Yes. The SEG is entirely optional — you are not required to export electricity or sign up for export payments. However, unless you can self-consume close to 100% of your generation (very rare without a large battery), you will be exporting electricity for free. There is no downside to joining the SEG.

What Happens if My Supplier Leaves the SEG?

If your SEG supplier goes out of business or withdraws from the scheme, your SEG agreement ends. You would need to sign up with a different SEG supplier. There is no “supplier of last resort” specifically for SEG, but since all large suppliers must participate, there will always be options available.

Can I Claim SEG on an Older Installation?

If your system was installed before the SEG launched (January 2020) and is MCS-certified, you can apply for the SEG — provided you are not already receiving Feed-in Tariff payments. You cannot claim both FiT and SEG for the same installation.

Does the SEG Apply to Battery Exports?

This is a grey area. The SEG is designed for renewable generation, not for electricity bought from the grid and stored. Most SEG agreements require that exported electricity comes from on-site generation. In practice, smart meters cannot always distinguish between solar exports and battery exports (where the battery was charged from the grid). Some suppliers explicitly exclude grid-charged battery exports in their terms.

The Future of the SEG

The SEG is a market-based mechanism with minimal government intervention. Its future depends on:

• Wholesale electricity prices — higher wholesale prices tend to push SEG rates up
• Grid flexibility needs — as more solar is installed, the value of flexible exports (battery-stored solar exported during peaks) will increase
• Government policy — possible introduction of a “floor price” for exports has been discussed but not implemented
• Peer-to-peer trading — emerging platforms may eventually allow you to sell solar electricity directly to neighbours at higher rates than SEG

For now, the SEG provides a reliable, if modest, income stream alongside the much larger savings from self-consumption.