Smart Export Guarantee 2026: How to Get the Best Rate for Your Surplus Solar

The Smart Export Guarantee (SEG) has been running since January 2020. It replaced the Feed-in Tariff's generation and export payments with a simpler obligation: energy suppliers with more than 150,000 customers must offer at least one SEG tariff that pays above zero for every unit of electricity you export. In practice, what you actually earn varies enormously — here is how to navigate it.

How the SEG works

To receive SEG payments, you need a generation system (solar panels are the most common), an MCS certificate for that system, and a smart meter or export meter that can measure how much you export. Your energy supplier then pays you for each kWh you send to the grid.

Crucially, the obligation on suppliers is only that the rate must be above zero — there is no minimum rate set by Ofgem. This means rates vary from a token fraction of a penny to meaningful figures, depending on the supplier and whether you are on a fixed or variable export tariff.

Fixed vs flexible SEG rates

Most SEG tariffs offer a fixed rate per kWh exported, regardless of time of day. These are predictable and easy to model. The more interesting option is a flexible (time-of-use) SEG tariff, which pays more during periods of high grid demand — typically evening peak hours — and less during overnight low-demand periods.

If you have a battery, a flexible SEG tariff changes the optimal charge strategy: rather than exporting surplus solar immediately, it may be worth storing it and exporting during the evening peak when rates are higher. The battery pays twice — first by avoiding grid import during the day, then by enabling higher-value exports in the evening.

How much can you realistically earn?

A typical 4kWp solar system in the UK generates around 3,400–3,800kWh per year. Without a battery, you will self-consume roughly 50–55% of that and export the rest — call it 1,600–1,900kWh exported annually. At a flat rate of 5p/kWh, that is £80–£95 per year. At 12p/kWh on a better tariff, it is £190–£230.

Add a battery and your exports drop significantly — a well-sized battery can push self-consumption above 80%, leaving only 680–760kWh to export annually. The SEG income falls, but the self-consumption saving (avoiding grid import at 24–28p/kWh) more than compensates.

How to find the best rate

SEG rates are published by all obligated suppliers and aggregated by Ofgem. The rates change periodically, so it is worth reviewing your export tariff once a year. Key things to compare:

• Rate per kWh — the headline number. Compare like-for-like (fixed vs fixed, or time-of-use vs time-of-use).
• Whether the rate is guaranteed — some suppliers reserve the right to change rates with notice. Check the terms.
• Import tariff compatibility — some of the best SEG rates are only available as part of a bundle with the supplier's import tariff. Check whether switching your import supply too makes sense overall.
• Smart meter requirement — all SEG tariffs require a smart meter. If you do not have one, you need to arrange installation before you can access the scheme.

The SEG in context

SEG income is real but secondary to the self-consumption saving. The primary financial argument for solar in 2026 is avoiding grid imports at 24–28p/kWh with generation that costs approximately 5–7p/kWh once you amortise the install cost over 25 years. Export income on top of that is a genuine bonus — just do not build your investment case around optimistic export assumptions.