Smart Export Guarantee (SEG): get paid for your surplus solar
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The Smart Export Guarantee is the ongoing scheme that pays you for the solar electricity you generate but do not use yourself. Administered by Ofgem, it launched on 1 January 2020 to succeed the Feed-in Tariff, which had already closed to new applicants in 2019. Unlike its predecessor, SEG does not close to new applicants. If you have an MCS-certified solar system and an export-capable smart meter, you can register for SEG payments today.
How SEG works
When your solar panels produce more electricity than your home is using at that moment, the surplus flows out to the national grid. Under SEG, a participating energy supplier pays you for each kilowatt-hour (kWh) of that exported electricity.
The government does not set the SEG rate. Ofgem only requires participating suppliers to offer a tariff that is above zero; the actual rate, contract length and terms are entirely supplier-set. Rates therefore vary considerably between suppliers, so it is worth comparing before you register. Every licensed supplier with 150,000 or more domestic customers must offer at least one SEG tariff; smaller suppliers can participate voluntarily.
Payments are typically monthly or quarterly, based on meter readings or smart meter data.
Who qualifies?
Ofgem sets out the eligibility criteria. To register for SEG you need:
- An MCS-certified installation: Your installation and installer must be certified through the Microgeneration Certification Scheme (MCS) — or an accredited equivalent such as Flexi-Orb. This gives you a certificate — keep it safe, as you will need it for registration.
- A system capacity of 5MW or less: Solar PV up to 5MW qualifies, so every domestic installation is comfortably within the limit. A typical home system is 3–6kWp.
- A meter capable of half-hourly export readings: Your meter must be able to measure how much electricity you export (not just import), which typically means a smart meter. Most second-generation (SMETS2) smart meters can do this. If your smart meter cannot measure exports, contact your supplier — they may need to upgrade it or fit a separate export meter.
- Ownership of the system: You must own the solar panels. If they were installed under a historical lease arrangement, the panel owner — not you — is entitled to SEG payments.
SEG rates as of 2026
Because rates are supplier-set and change frequently, the figures below are a snapshot — always check current tariffs before you choose. The landscape in mid-2026 broadly breaks into three types:
Fixed-rate tariffs
You receive the same rate per kWh exported, regardless of time of day. Predictable and simple. As of 2026, widely available fixed rates open to most customers top out around 15p/kWh(with providers such as British Gas, EDF and Scottish Power among the better standard rates), while basic open-to-anyone tariffs can be as low as a few pence per kWh. The best fixed rates of all — for example Good Energy's exclusive tariff at around 25p/kWh — are usually restricted to the supplier's own installation or battery customers. Check what you actually qualify for.
Variable-rate tariffs
Rates move with wholesale electricity prices. You benefit when prices are high but earn less when they fall. These are harder to budget but can outperform fixed rates over time.
Time-of-use (TOU) tariffs
Peak-rate export tariffs — typically requiring a home battery so you can choose when to export. Octopus is the most well-known example: as of 2026 its Intelligent Octopus Flux tariff pays around 23p/kWh for exports during peak demand periods, but it requires pairing with an Octopus import tariff and a compatible battery system. Headline peak rates like this move regularly, so confirm the current figure before relying on it.
A TOU export tariff is not straightforwardly “better” — you need to use more electricity off-peak and export at peak to realise the benefit. If you do not have a battery, a competitive fixed-rate tariff is usually the more practical choice.
How much can you earn?
A typical UK household with a 4kWp solar system exports roughly 40–50% of its generation (the rest is used directly at home). At current typical fixed rates:
- 4kWp system generating ~3,600 kWh/year
- Exported: ~1,500–1,800 kWh/year
- At a typical supplier-set rate of ~13p/kWh: roughly £195–£235/year (more on a top fixed rate near 15p)
This is on top of your self-consumption savings — the electricity you use directly, avoiding import at the Ofgem price-cap unit rate of about 24.67p/kWh (Direct Debit, April–June 2026). Because the import rate is far higher than any SEG rate, using your own solar is worth roughly twice as much as exporting it. Combined, the total annual benefit from a 4kWp system is typically in the range of £600–£900/year, depending on your consumption patterns.
If you have a battery that allows you to shift export to peak SEG times, earnings from export can increase, though the battery's capital cost needs to be weighed against this over its lifetime. The battery decision guide covers this.
How to register
- Compare current SEG rates across suppliers. You can do this via comparison sites or directly with suppliers. You are not obliged to use your import (electricity buying) supplier.
- Contact your chosen SEG supplier and ask to register for their SEG tariff.
- Provide your MCS installation certificate number. Suppliers check this to verify your system is certified.
- Confirm your meter can measure exports. The supplier will check your meter details. If your meter needs upgrading, they can arrange this — usually free.
- Set up payment details. Payments typically land monthly or quarterly once the account is live.
Registration is free. There is no fixed-term contract obligation in most cases — you can switch SEG supplier if a better rate becomes available.
SEG vs the old Feed-in Tariff (FIT)
The Feed-in Tariff closed to new applicants on 31 March 2019 (SEG then launched on 1 January 2020, leaving a gap of several months with no successor scheme). FIT paid households both for generation (every kWh produced, whether used or exported) and for export, and its generation payments were significantly more generous than anything available today — households accredited in the early years locked in rates well above 40p/kWh for generation alone.
SEG only pays for what you actually export. The generation-payment element is gone. This is why self-consumption matters more under SEG: using your solar electricity directly (especially when charging an EV or a battery) is worth more than exporting it.
FIT is closed to new applicants and cannot be joined retrospectively. Existing FIT participants keep their payments for the rest of their accredited term; anyone installing solar now uses SEG instead.
Tax
HMRC's domestic microgeneration exemption removes income tax on the sale of electricity from a system at your home, provided you do not intend to generate significantly more than your home consumes — HMRC treats generation up to roughly 20% above your own needs as within scope. A typical household solar system comfortably meets this test, so SEG payments are not normally taxable income for homeowners and you do not usually need to declare them on a self-assessment return. If your circumstances are unusual (for example a very large system, or solar on a rented-out property), check HMRC guidance or speak to an accountant.
Frequently asked questions
What is the Smart Export Guarantee?
The Smart Export Guarantee (SEG) is a government scheme that requires licensed electricity suppliers with 150,000 or more domestic customers to offer a tariff paying solar panel owners for surplus electricity they export to the national grid. It launched in January 2020.
How much does SEG pay?
There is no government-set SEG rate — each supplier sets its own, and it only has to be above zero. As of 2026, widely available fixed rates run from around 1p up to about 15p per kWh, with the best premium tariffs (typically requiring a battery and a matching import tariff) paying more — for example Intelligent Octopus Flux at around 23p/kWh. Rates change frequently, so always compare current tariffs. A typical household with a 4kWp system earns roughly £100–£300 per year from SEG.
Do I need to buy my electricity from the same supplier that pays my SEG?
No. You can import electricity from one supplier and export through a completely different SEG-paying supplier. Shopping around for the best export rate is independent of your electricity tariff.
Is SEG income taxable?
For most domestic homeowners, no. HMRC's domestic microgeneration exemption removes income tax on the sale of electricity from a system at your home, provided you do not intend to generate significantly more than your home consumes (HMRC treats up to roughly 20% above your own needs as within scope). Typical household solar comfortably meets this, so you do not normally need to declare SEG income. If you are unsure or your circumstances are unusual, check HMRC guidance or speak to an accountant.
Can I get SEG if my panels were installed under ECO4 or a free scheme?
Only if you own the panels. Under ECO4, you do own them, so yes. If your panels were installed under a historical rent-a-roof or lease arrangement where a company retains ownership, you cannot claim SEG — the owner of the generation equipment is entitled to the export payments, not the property owner.
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Start the Solar Planner →Sources — verified 4 June 2026
- Ofgem, “Smart Export Guarantee (SEG)” — www.ofgem.gov.uk
- Ofgem, “Smart Export Guarantee (SEG) — Electricity Suppliers” — www.ofgem.gov.uk
- GOV.UK, “Smart Export Guarantee (SEG): earn money for exporting the renewable electricity you have generated” — www.gov.uk
- Which?, “The best Smart Export Guarantee rates: SEG tariff comparison” — www.which.co.uk
- Energy Saving Trust, “Solar panels — advice on rates and savings” — energysavingtrust.org.uk
- legislation.gov.uk, “The Feed-in Tariffs (Closure, etc.) Order 2018” — www.legislation.gov.uk
- HMRC, “BIM40520: Income Tax exemption for domestic microgeneration” — www.gov.uk
Also worth reading
- Feed-in Tariff — still on FIT? How it compares to SEG
- Best SEG rates 2026 — full tariff comparison
- British Gas SEG tariff review
- Do you actually need a battery? — batteries and SEG time-of-use tariffs
- ECO4 Scheme — free solar if you qualify (and you'll own the panels)
- Free solar panels — why not owning your panels blocks SEG
- Covered areas — where we install solar panels