Smart Export Guarantee 2026: How to Get the Best Rate

Written and reviewed by Sepehr. See our editorial policy.
The Smart Export Guarantee (SEG) is the UK scheme that pays you for surplus solar electricity exported back to the grid. Rates vary from under 1p/kWh to over 15p/kWh depending on supplier, tariff type, and whether you bundle import and export with the same supplier. The choice matters: a typical 4 kWp household exports 1,500–2,500 kWh/year, so the difference between a low and high SEG rate is worth £150–£350/year for the lifetime of the system.
This guide explains how the scheme works, what determines the rate you can claim, how to find the best export tariff, and the small print to watch for.
How SEG works
SEG launched on 1 January 2020, replacing the Feed-in Tariff for new installations. Under SEG, every electricity supplier with more than 150,000 domestic customers is legally required to offer at least one SEG tariff to qualifying exporters. The rate they offer is at the supplier's discretion — there is no government-set floor — but it must always be above zero.
To export under SEG, you need:
- A renewable generation system up to 5 MW capacity (solar PV, wind, hydro, anaerobic digestion, or micro-CHP up to 50 kW)
- MCS certification (or Flexi-Orb / equivalent) for the installation
- A smart meter capable of half-hourly export readings (SMETS2 or SMETS1 with firmware update) — see how your smart meter records solar exports for the full metering guide
- An agreement with a SEG licensee (any qualifying supplier)
You can claim SEG with a different supplier than your import — known as a "split tariff" — though the best rates usually require both import and export with the same supplier.
SEG in numbers: Year 5 (April 2024 – March 2025)
The Ofgem SEG Year 5 Annual Report (published December 2025) shows just how quickly the scheme has moved into the mainstream:
- £56.97 million paid to generators — an 85% increase year-on-year from £30.75 million in Year 4. This is the sharpest signal yet that SEG income is real and growing.
- 270,395 installations registered — up 63% from 166,022 in Year 4, confirming that export payments are now a standard part of owning solar in the UK.
- 1,585 MW of total registered capacity — up from 967 MW the previous year.
- 443.1 GWh of electricity exported — up from 283.1 GWh in Year 4.
The 85% surge in total payments reflects both more registered systems and improving tariff rates across the market. Any savings figure you see quoted for a specific system size (for example, estimates based on the government’s SAP methodology) should be treated as an indicative benchmark rather than a guaranteed outcome, since actual export depends on your household’s consumption patterns, orientation, and shading.
2026 SEG tariff rates by supplier
The export market moves constantly and several headline rates have changed in 2026, so treat the figures below as indicative and always confirm the live rate with the supplier before signing up:
- Octopus Outgoing Agile: half-hourly variable, tracking the day-ahead wholesale price. Annual blended average is typically in the high single digits to low teens p/kWh for ordinary export patterns.
- Octopus Outgoing Fixed: 12p/kWh fixed (only available to Octopus import customers; reduced from 15p to 12p in March 2026 — see our Octopus Energy solar review for the full tariff picture including Flux).
- E.ON Next Export: around 13–16.5p/kWh depending on the variant (E.ON import customers, fixed-rate tariffs only).
- EDF Export: a fixed export tariff in the low-to-mid teens p/kWh (EDF import customers).
- British Gas Export & Earn Plus: around 15p/kWh (British Gas import customers).
- OVO Energy: around 12p/kWh.
- Scottish Power SmartGen: around 12p/kWh.
Several smaller suppliers offer 1–5p/kWh as the bare-minimum compliance tariff. Avoid these unless you can't qualify for a better one. A handful of premium tariffs advertise much higher peak rates (25p/kWh and above), but these almost always require a home battery and an import tariff with the same supplier.
Fixed vs variable rates
Fixed-rate SEG tariffs pay you the same per-kWh regardless of when you export. They're simpler to understand and predictable for budgeting.
Variable-rate tariffs (Octopus Outgoing Agile is the leading example) pay you in line with the half-hourly wholesale electricity price. On sunny weekday afternoons in summer, wholesale prices often dip below 5p/kWh — sometimes negative — meaning you can receive very little or even pay to export. On winter evenings, wholesale prices spike, sometimes above 30p/kWh.
For a typical UK solar household, most export happens in the middle of sunny days when wholesale prices are at their lowest. Variable tariffs often look favourable on the headline blended-average number but can pay less than a good fixed tariff in practice. Run the maths against your actual half-hourly export pattern before switching.
Variable tariffs are most valuable for households with a battery that can hold export back from cheap periods and discharge during expensive ones — effectively arbitraging between SEG variable rates and import rates.
Why bundled import + export usually wins
The headline rate isn't the only thing that matters. Most suppliers' best export rates are restricted to their own import customers — Octopus Outgoing Fixed, E.ON Next Export, and British Gas Export & Earn Plus are all import-tied.
If switching to that supplier's import tariff means paying 1–2p/kWh more for your imports, the gain on export is partially offset. Run the maths on total annual cost: (import rate × import kWh) − (export rate × export kWh). Sometimes a cheaper import tariff with a lower export rate wins overall.
For most 4–6 kWp solar households with 3,500–5,000 kWh annual import: a 1p/kWh better export rate is worth roughly £20/year; a 1p/kWh better import rate is worth £35–£50/year. Import matters more than export for most households.
Eligibility requirements in detail
MCS certification: Your installation must have been certified by an MCS-registered installer (or Flexi-Orb / NICEIC equivalent). Self-installed systems without MCS certification cannot claim SEG, though some specialist tariffs accept Flexi-Orb-certified self-installs. See DIY certificates and sign-off for the alternative routes.
Smart meter: You need a SMETS2 meter (or a firmware-updated SMETS1) capable of half-hourly export metering. The supplier reads your export directly from the meter; you don't submit readings yourself. If you have an older meter, your supplier will arrange a free upgrade.
MPAN registration: The supplier registers your generation to enable settlement against the grid. This is admin handled by the supplier, but it can take 4–8 weeks. You'll typically receive your first SEG payment 1–2 months after sign-up.
System capacity: Domestic systems are well under the 5 MW SEG cap. The DNO 3.68 kW per-phase export limit (G98) doesn't affect SEG eligibility but does cap export, which limits what you can earn. See solar panel sizing for the export-limit context.
How to sign up
- Get your MCS certificate. Your installer issues this after commissioning. Keep the digital and paper copies safe.
- Check your meter type. Look at the energy supplier app or call them — confirm it's SMETS2-compatible or already firmware-updated.
- Compare current SEG tariff rates. Cross-reference Octopus Outgoing, E.ON Next, British Gas, EDF, OVO, and Scottish Power against your import tariff.
- Apply to your chosen SEG supplier. You'll need your MCS certificate, MPAN number, and meter serial. Most applications are online and take 10 minutes.
- Wait for setup. 4–8 weeks before your first SEG payment is normal. Some suppliers backdate the first payment to your install date; some don't.
How much can a typical UK household earn from SEG?
Indicative annual SEG income for a south-facing 4 kWp system, using industry-standard self-consumption assumptions (around 30% used on-site without a battery, rising to roughly 65% with one):
- No battery, ~30% self-consumption, exporting ~70% of 3,500 kWh = ~2,450 kWh at 12p: ~£294/year
- With battery, ~65% self-consumption, exporting ~35% of 3,500 kWh = ~1,225 kWh at 12p: ~£147/year
- No battery on Outgoing Agile blended at ~10p: ~£245/year
- With battery on Outgoing Agile, exporting strategically at peak prices (avg ~18p): ~£220/year
A battery reduces total SEG income because more solar is consumed on-site, but increases total household savings because the value of avoided imports (~24.67p/kWh under the current Ofgem price cap) exceeds the value of SEG exports.
Common mistakes
Sticking with the supplier you signed up with at install: Many installers register customers with their default supplier (often a low-rate one). You can switch to any other SEG supplier at any time — it's a few minutes' admin.
Choosing the supplier with the highest headline rate without checking import: A high export rate matters less than a low import rate. Run the combined annual maths.
Ignoring smart-meter requirements: If your meter isn't smart, your SEG application will be put on hold until the supplier upgrades it. Confirm meter status before applying.
Not switching tariffs as the market changes: SEG headline rates rose across most suppliers through 2024–2025, but some have since been trimmed (Octopus Outgoing Fixed fell from 15p to 12p in 2026). The rate you locked in a year or two ago may no longer be competitive — in either direction.
Where to go next
For the broader UK solar grant and incentive landscape, see the UK solar grants guide and the Smart Export Guarantee scheme page. To work out how export interacts with battery sizing, see home battery storage. When you're ready to install, request MCS-certified installer quotes.
Business owners should note that commercial solar systems up to 5 MWp are eligible for the SEG provided they hold MCS certification and a smart meter. However, larger businesses with high daytime loads often find self-consumption is a more valuable strategy than exporting surplus. Our guide to commercial solar panels in the UK covers export options, Power Purchase Agreements and the full financial case for business solar.
Before choosing a SEG tariff, it is also worth understanding who actually gets the export income if you lease rather than own your panels — our solar lease vs buy UK guide covers this in detail.
Your import tariff is as important as your export rate — see our guide to the best energy tariffs for solar panel owners.
Octopus offers several tariffs suited to solar owners — our guide to the best Octopus tariffs for solar owners compares Flux, Agile, and Intelligent.
SEG contracts are held by the registered owner — our guide covers SEG transfer when buying a house with solar.
For batteries with grid export functionality, virtual power plants can earn more than a standard SEG tariff.
SEG payments appear differently on different supplier bills — see our guide to understanding SEG payments on your energy bill.
FAQs
Do I need to be with the same supplier for SEG and standard tariff?
No, but most best-rate SEG tariffs are import-tied. You can split, but typically you'd be on a less-good SEG rate.
How is SEG paid?
Most suppliers credit it against your import bill, reducing what you owe. Some pay it as a separate credit to your bank account quarterly.
Can I claim SEG without MCS certification?
Officially you need MCS or equivalent. Some specialist suppliers accept Flexi-Orb certification. Pure self-installed systems without certification can't claim SEG.
How long is the SEG agreement?
SEG has no minimum term and you can switch supplier any time, similar to a standard energy contract. You may need to wait 4–8 weeks for the new supplier to take over.
Is SEG taxable?
For most domestic households, SEG income falls within HMRC's £1,000 annual trading allowance and is effectively tax-free with nothing to report. However, the allowance covers your total miscellaneous trading income, so if your SEG payments plus any other side income exceed £1,000 in a tax year you may need to declare it via Self Assessment. If you export commercial-scale electricity, different rules apply.
Sources — verified 7 June 2026
- Ofgem, “Smart Export Guarantee (SEG)” — www.ofgem.gov.uk
- Ofgem, “Smart Export Guarantee Annual Report: April 2024–March 2025” (December 2025) — www.ofgem.gov.uk
- Octopus Energy, “Outgoing Octopus export tariff” — octopus.energy
- Ofgem, “Changes to energy price cap between 1 April and 30 June 2026” — www.ofgem.gov.uk
- Energy Saving Trust, “Solar panels” — energysavingtrust.org.uk
- HMRC / GOV.UK, “Tax-free allowances on property and trading income” — www.gov.uk

About the author
Sepehr
Solar specialist & co-founder, Smart Solar Homes
Solar specialist and co-founder of Smart Solar Homes, which works with MCS-certified UK installer partners. I write all the guides and reviews here; the aim is straight-talking education the industry rarely provides.
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