What Is the Smart Export Guarantee (SEG)? UK Solar Export Payments Explained

The Smart Export Guarantee (SEG) is a UK government scheme that requires licensed electricity suppliers with 150,000+ customers to offer payments to small-scale renewable energy generators for electricity exported to the grid. For homeowners with solar panels (and other renewable sources including wind and micro-hydro), SEG means getting paid for solar electricity generated but not used in the home.

This article is for information only. SEG rates, eligibility, and supplier terms change. Always check current rates directly with eligible suppliers before making any financial decisions about solar installation.

How the SEG Works

When your solar panels generate more electricity than your home is using at that moment, the surplus flows back into the national grid. Under the SEG, your electricity supplier must pay you for every unit (kWh) of electricity you export — but suppliers set their own rates, as long as the rate is above 0p/kWh.

In practice, this means SEG rates vary significantly between suppliers and change regularly. Checking and choosing the best SEG rate is a meaningful financial consideration for solar panel owners.

Current SEG Rate Ranges (August 2026)

Standard SEG export rates are approximately 4–5p per kWh at the lower end of the market. Premium rates from suppliers like Octopus and Ovo can reach up to 15–29p per kWh if you have a battery and a specific tariff.

The gap between standard and premium SEG rates is substantial — at 7p/kWh versus 20p/kWh, a household exporting 1,500kWh per year receives £105 versus £300 annually from the same generation. For households with battery storage, smart tariffs that optimise when electricity is exported (exporting during peak-demand periods when rates are highest) can significantly improve SEG income.

Always check current rates directly with suppliers — SEG rates are not regulated above 0p/kWh, meaning they change frequently and the market is competitive.

Who Is Eligible for SEG?

To receive SEG payments, your installation must:

• Have an installed capacity of 5MW or less (essentially all domestic installations)
• Use technology eligible under the SEG (solar PV, wind, micro-hydro, and certain other renewables)
• Be installed by an MCS-certified installer
• Have a smart export meter that can measure what you actually export (not just assume a percentage of total generation)

The requirement for an MCS-certified installation is the key eligibility gate — one of several reasons to use only MCS-certified installers regardless of cost.

SEG vs Feed-in Tariff (FiT): What Changed

The Feed-in Tariff (FiT) scheme that preceded SEG guaranteed a fixed rate for electricity generated (not just exported) for 20 years — a significantly more generous scheme that is now closed to new applicants. Homeowners who installed solar under FiT before the scheme closed (April 2019) remain on those rates. New installations from 2020 onward use the SEG.

If you're buying a property with existing solar panels, check whether those panels are registered under the old FiT scheme — FiT payments transfer to the new owner, and a property with FiT registration may have meaningfully higher solar income than an equivalent SEG installation.

Choosing the Best SEG Rate in 2026

The major factors to consider when choosing a SEG supplier:

Rate per kWh: The headline figure — compare like-for-like across suppliers for your estimated annual export volume.

Import tariff compatibility: You can use different suppliers for import (the electricity you buy) and export (the electricity you sell), but some suppliers offer advantageous combined tariffs — notably Octopus's Intelligent Octopus package, which combines smart EV charging, solar export, and battery management into an integrated package. See our Best EV Home Chargers UK 2026 guide for how a smart charger fits into that package.

Metering requirements: Some premium SEG tariffs require a specific smart meter type — check compatibility with your installed meter before switching.

Payment frequency and terms: Most suppliers pay quarterly; some more frequently. Check payment reliability by looking at consumer reviews for SEG payment experiences.

Maximising Your SEG Income

Battery storage: Premium SEG rates from suppliers like Octopus and Ovo reach up to 15–29p per kWh if you have a battery and a specific tariff. A battery allows you to store daytime generation and export during peak evening demand periods when export rates are highest — potentially tripling the value of each kWh exported compared to standard mid-day export during low-demand periods.

Smart tariff pairing: Intelligent Octopus and similar tariffs can automatically export from your battery during peak-rate periods and charge from cheap overnight grid electricity — turning your solar and battery combination into a more active income source beyond simple bill reduction.

Frequently Asked Questions

Do I need to actively sign up for SEG, or does it happen automatically? You need to actively apply to a SEG-eligible supplier. It doesn't happen automatically — contact your electricity supplier or a SEG-eligible supplier after installation to apply.

Can I switch SEG suppliers? Yes — like your import electricity supplier, you can switch SEG suppliers to access better rates. The export contract is separate from your import contract and can be changed independently.

How much will I earn from SEG payments? For a typical 4kW system exporting approximately 50–60% of generation (without a battery), SEG income at standard rates is typically £75–200 per year. With a battery optimising export timing to premium rates, some households report £300–500 per year from SEG payments alone. Always use conservative estimates in your financial planning rather than best-case projections.

For the full solar panel financial picture, see our How Much Can Solar Panels Save You in the UK? guide.