The SEG is a government-backed obligation on larger electricity suppliers. It replaced the Feed-in Tariff (FiT) export element on 1 January 2020 and requires every licensed supplier with 150,000 or more domestic customers to offer at least one export tariff to eligible small-scale generators. The tariff must be greater than zero pence per kilowatt-hour (kWh), but there is no mandated minimum rate.
Unlike the old FiT, the SEG does not guarantee a fixed price. Each supplier sets its own rate, payment frequency and contract terms. Some offer a flat rate per kWh exported, while others use time-of-export or "agile" pricing that varies by half-hour period. This means the amount you earn depends heavily on which tariff you choose and when your system exports surplus electricity.
The SEG covers several renewable technologies, not only solar photovoltaic (PV) panels. Wind turbines, micro combined heat and power (up to 50 kW), hydro and anaerobic digestion installations up to 5 MW capacity are all eligible, provided they meet the certification requirements described below (Ofgem, Smart Export Guarantee).
Eligibility at a glance
SEG eligibility at a glance
Eligible solar PV with MCS or accepted equivalent certification and export metering
Smart meter or equivalent export metering
Supplier with 150,000+ domestic customers must offer a tariff above zero
You can choose any participating supplier, not just your electricity provider
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Most homeowners with a certified renewable installation qualify. The key requirements are clear but worth checking before you apply.
Your installation must be certified under the Microgeneration Certification Scheme (MCS) or an equivalent standard. This confirms the equipment and installer meet recognised quality benchmarks. For a non-MCS installation, ask the prospective supplier whether it accepts equivalent certification. Do not assume a DIY installation qualifies without the required evidence.
You also need a smart meter, or an equivalent meter capable of recording half-hourly export data. Without one, your supplier cannot measure how much electricity you send to the grid. Most energy suppliers will install a smart meter free of charge if you do not already have one.
There is no property-type restriction. Homeowners, some tenants (with landlord agreement) and small businesses can all participate. You do not need to be on a particular energy tariff, and you can sign up with a different supplier from the one that provides your electricity import.
You cannot receive FIT export and SEG payments for the same installation at the same time. Eligible FIT generators can opt out of FIT export payments while retaining FIT generation payments. Check the timing and conditions with your FIT supplier before changing (Ofgem FIT guidance).
How do SEG tariff rates work?
Suppliers set their own rates, so there is no single "SEG rate" to quote. Tariffs change regularly and vary between suppliers. Ofgem's role is to ensure obligated suppliers offer at least one tariff above zero, not to regulate the price itself (Ofgem, SEG supplier list).
There are broadly two tariff structures:
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Several practical points catch people out when signing up for SEG.
Tariffs close to zero exist. The legal requirement is only that the rate exceeds zero. Some suppliers offer fractions of a penny per kWh. Always compare before accepting the first offer.
Contract terms vary. Some tariffs are fixed for a year, others can change at short notice. Read the terms carefully, particularly around exit fees and rate-change notice periods.
Payment frequency matters. Quarterly payments are common, but some suppliers pay monthly. If cash flow matters to you, check this before signing.
Compare self-use with export. Using a kWh at home avoids its import price but gives up the export payment. Compare those prices at the relevant time. For battery storage, also account for losses, purchase cost and wear before assuming storage improves the return.
Tax is a separate question. Do not infer tax treatment from SEG eligibility or confuse income tax with VAT on an installation. Check HMRC guidance for your circumstances before relying on an exemption.
SEG vs the old Feed-in Tariff
The Feed-in Tariff closed to new applicants on 31 March 2019. Existing FiT recipients continue to receive their contracted payments until their 20-year or 25-year term ends. The SEG replaced only the export element for new installations.
Key differences:
No generation tariff. The FiT paid for every kWh generated, whether used or exported. SEG pays only for exported electricity.
No government-set rate. FiT rates were set by Ofgem and guaranteed for the contract term. SEG rates are set by suppliers and can change.
Common questions
Frequently asked questions
Is there a minimum SEG rate set by the government?
No. Suppliers must offer a rate above zero, but there is no mandated minimum. Rates vary widely between suppliers, so comparing offers is important before you sign up.
Must I use my import supplier for SEG?
No, you can choose a participating export supplier.
Do I have to use my current electricity supplier for SEG?
You can compare participating export suppliers separately from your import supplier. Some enhanced commercial offers have additional conditions, so compare the full terms and total import and export costs.
Can I receive both Feed-in Tariff and SEG payments?
You cannot claim FIT export and SEG payments for the same installation simultaneously. You may retain FIT generation payments while switching the export element, subject to the applicable opt-out rules.
How often do SEG suppliers pay me?
Payment frequency is set by the supplier and tariff. Read the current contract and check which readings or account details are needed for payments.
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Fixed-rate tariffs pay the same amount per kWh regardless of when you export. These are simpler to budget around but may pay less overall than variable options.
Variable or time-of-export tariffs adjust the rate depending on the half-hour period. You might earn more during evening peak demand and less during midday when solar generation across the grid is high. These can reward households with battery storage that can shift exports to higher-value periods.
Because rates are not fixed by government, the best approach is to compare current offers from multiple suppliers before committing. Ofgem publishes a list of all obligated suppliers and their SEG tariff details. Check contract length, payment frequency (monthly vs quarterly) and whether the tariff is genuinely competitive, not just above zero.
How much could you earn? An illustrative example
Actual earnings depend on your system size, location, self-consumption and chosen tariff. The following is a clearly hypothetical worked example to illustrate the maths, not a prediction of your income.
Assumptions (illustrative only):
4 kW solar PV system in central England
Assumed annual generation of 3,400 kWh, chosen only for this calculation and not a site prediction
50% of generation used in the home, 50% exported (1,700 kWh exported)
Hypothetical flat export tariff of 10p per kWh
Illustrative annual SEG income: 1,700 kWh × £0.10 = £170 per year
If you increased self-consumption (for example, by running appliances during daylight hours or adding a battery storage system), your export volume would fall but your avoided import costs would rise. The financial benefit of solar comes from both the electricity you use yourself and the export payments combined.
With a variable tariff, earnings could be higher or lower depending on when exports occur. A household with battery storage that exports during evening peak hours might achieve a higher effective rate, while one exporting mostly at midday might earn less than the headline rate suggests.
How to apply for the Smart Export Guarantee
Applying is a supplier-led process, not a government application. Follow these steps:
Confirm certification. Obtain the MCS certificate or evidence of an equivalent accepted by your chosen supplier. Check this requirement before commissioning an installation.
Ensure you have a smart meter. Contact your electricity supplier to arrange a free installation if needed.
Compare SEG tariffs. Check the Ofgem supplier list and individual supplier websites. Look at the rate per kWh, contract terms, payment frequency and any lock-in periods.
Apply to your chosen supplier. You will typically need your MCS certificate number, meter details and proof of installation. Most suppliers handle applications online.
Start earning. Once approved, your smart meter records exports and the supplier pays you according to the agreed tariff.
You are not locked to your current electricity supplier. Shopping around for the best SEG tariff is one of the simplest ways to increase your return from solar panels.
Market competition. Because suppliers compete on SEG rates, you have more choice but also more responsibility to compare offers.
Smart metering required. The FiT allowed deemed exports (an assumed 50% of generation). SEG requires actual metered export data via a smart meter.
SEG is one export-payment route for eligible generators; suppliers may also offer commercial arrangements. The financial case for solar now rests more heavily on self-consumption savings than on export income alone. Our guide on whether solar panels are worth it covers the full payback calculation.
What if you do not have a smart meter?
You need suitable half-hourly export metering, which may be a smart meter or an accepted equivalent. Ask your supplier which metering arrangement it can support at your property and confirm any installation requirements or charges.
If your property has technical barriers to smart meter installation (for example, poor signal in rural areas), speak to your supplier about alternative metering arrangements. Some suppliers accept other forms of half-hourly export metering, though this is less common.
While waiting for a smart meter, you can still use the electricity your panels generate. You simply will not receive export payments until metering is in place. It is worth requesting the meter installation early in your solar planning process to avoid delays.
Making the most of SEG alongside other solar benefits
SEG is one part of the financial picture for solar panel owners. Combining it with other measures can improve your overall return.
Battery storage lets you store surplus generation for evening use rather than exporting at a low rate. If your SEG tariff is significantly below your import rate, a battery can shift more value to self-consumption. Some variable SEG tariffs also reward battery owners who export during peak periods. Read more in our solar battery guide.
Zero-rate VAT on installation currently applies to qualifying energy-saving materials installed by a professional, including solar panels, through 31 March 2027. After that date, the rate is scheduled to rise to 5%. This reduces the upfront cost and improves the payback period (GOV.UK, VAT on energy-saving materials).
The solar panel installation process typically includes MCS certification as standard when you use an accredited installer, but metering, the export application and supplier approval must also be completed before payments begin.