Smart Export Guarantee Explained
The Smart Export Guarantee (SEG) is a UK government scheme requiring licensed electricity suppliers to pay homeowners for excess solar electricity exported to the grid. It replaced the Feed-in Tariff in January 2020.
How the SEG Works
When your solar panels generate more electricity than your home uses, the surplus is exported to the National Grid. Under the SEG, your chosen supplier pays you for every kilowatt-hour (kWh) exported.
Licensed suppliers with 150,000 or more customers are legally required to offer at least one SEG tariff. The rate must be greater than zero, but there is no minimum rate set by the government — suppliers set their own rates competitively.
This is why rates vary enormously: from as low as 1p/kWh to 24p/kWh fixed, with variable tariffs reaching 35p+ during peak hours.
Eligibility Requirements
- 1.Eligible technology: Solar PV up to 5MW, wind up to 50kW, micro-CHP up to 50kW, hydro up to 50kW, or anaerobic digestion up to 50kW.
- 2.MCS certification: Your installation must be certified by the Microgeneration Certification Scheme (MCS) or equivalent.
- 3.Smart meter: You need a smart meter (SMETS2) that can record export readings. Some suppliers accept SMETS1 meters.
- 4.Not on FIT export: You cannot receive both FIT export payments and SEG payments simultaneously.
SEG vs Feed-in Tariff
| Feature | Feed-in Tariff | SEG |
|---|---|---|
| Status | Closed (March 2019) | Active (from Jan 2020) |
| Generation payment | Yes (per kWh generated) | No |
| Export payment | Yes (deemed or metered) | Yes (metered only) |
| Rate setting | Government-set | Supplier-set (market) |
| Best export rate | ~5.5p/kWh (final year) | 24p/kWh fixed |
| Contract length | 20-25 years | No fixed term |
Current SEG Rate Ranges
Frequently Asked Questions
What is the Smart Export Guarantee?
The Smart Export Guarantee (SEG) is a UK government scheme that requires licensed electricity suppliers with 150,000+ customers to offer a tariff for small-scale renewable electricity exported to the grid. It replaced the Feed-in Tariff in January 2020.
Who is eligible for the SEG?
You are eligible if you have a solar PV system up to 5MW (or other eligible technology up to 50kW) installed by an MCS-certified installer, and you have a smart meter capable of recording export readings.
How much can I earn from the SEG?
SEG rates vary by supplier from around 1p/kWh to 24p/kWh (fixed) or up to 35p+ on variable tariffs. A typical 4kW system exporting 50% could earn between £18 and £432 per year depending on the rate.
What is the difference between SEG and Feed-in Tariff?
The Feed-in Tariff (FIT) paid for both generation and export at government-set rates (often 15-20p/kWh combined). The SEG only pays for export at rates set by individual suppliers. However, the best SEG rates (24p/kWh) now rival FIT export rates.
Can I be on the SEG and Feed-in Tariff at the same time?
No. If you are already receiving the Feed-in Tariff export payment, you cannot also receive SEG payments. However, once your FIT contract ends, you can switch to the SEG.
Find the Best Rate
Compare every SEG tariff in the UK and calculate your potential earnings.