Smart Export Guarantee (SEG): get paid for your surplus solar

The Smart Export Guarantee is the ongoing scheme that pays you for the solar electricity you generate but do not use yourself. It replaced the Feed-in Tariff in 2020 and — unlike its predecessor — it never closes 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 — it only requires suppliers to offer a tariff that is above zero. Rates vary considerably between suppliers, so it is worth comparing before you register.

Payments are typically monthly or quarterly, based on meter readings or smart meter data.

Who qualifies?

To register for SEG you need:

• An MCS-certified installation: Your solar system must have been installed by an MCS (Microgeneration Certification Scheme) accredited installer. This gives you an MCS certificate — keep it safe, as you will need it for registration.
• A system capacity of 5MW or less: Every domestic installation qualifies easily under this limit. A typical home system is 3–6kWp.
• An export-capable smart meter: Your meter must be able to measure how much electricity you export (not just import). 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.

Current SEG rates (May 2026)

Rates change frequently as suppliers update their tariffs. 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. Leading fixed rates currently sit around 14–16.5p/kWh. E.ON Next's Export Exclusive tariff has been competitive at around 16.5p/kWh with no requirement for battery storage.

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 Flux is the most well-known example, paying up to approximately 30p/kWh for exports during peak demand periods (typically early morning and early evening). However, this requires pairing with an Octopus import tariff and a compatible battery system.

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 15p/kWh: roughly £225–£270/year

This is on top of your self-consumption savings (the electricity you use directly, avoiding import at typically 24–28p/kWh). Combined, the total annual benefit from a 4kWp system at current rates 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

1. 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.
2. Contact your chosen SEG supplier and ask to register for their SEG tariff.
3. Provide your MCS installation certificate number. Suppliers check this to verify your system is certified.
4. Confirm your meter can measure exports. The supplier will check your meter details. If your meter needs upgrading, they can arrange this — usually free.
5. 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, which ran until January 2020, paid households both for generation (every kWh produced, whether used or exported) and for export. FIT generation payments were significantly more generous — households locked in at the right time could earn 40–50p/kWh in generation payments 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.

If you were on FIT and it was not closed to new applications before you could apply, you cannot retrospectively join. New applicants since January 2020 are on SEG.

Tax

HMRC's domestic microgeneration exemption covers SEG income from systems of up to 50kW capacity. Since every residential solar installation is well below this threshold, SEG payments are not taxable income for homeowners. You do not need to declare them on a self-assessment return.

Frequently asked questions