Smart Export Guarantee: Get Paid for Your Solar
The Smart Export Guarantee replaced the Feed-in Tariff in 2020. Here is everything you need to know about how it works, what it pays, and how to register.
The Smart Export Guarantee (SEG) is a UK government-mandated scheme that requires licensed electricity suppliers with more than 150,000 customers to offer a tariff for electricity exported to the grid from small-scale renewable energy systems — including residential solar panels. It came into force on 1 January 2020, replacing the Feed-in Tariff which closed to new applicants in April 2019.
The core principle is simple: when your solar panels generate more electricity than your home is consuming at any given moment, the surplus flows back to the grid. The SEG pays you for this exported electricity. Unlike the old Feed-in Tariff, the SEG is entirely market-driven — government sets the obligation on suppliers to offer a positive rate, but does not fix the rate. As a result, rates vary significantly between providers and change over time.
How SEG Works: The Basics
When your solar system is generating more electricity than your home is consuming — typically from mid-morning to mid-afternoon on bright days — the surplus flows out through your electricity meter and into the grid. Your smart meter records how many kilowatt-hours (kWh) are exported in each half-hour period. Your SEG provider reads this data and pays you the agreed rate per kWh at regular intervals (usually quarterly).
There is no cap on how much you can earn, and the scheme is open to any solar installation of up to 5 megawatts (far beyond residential scale). For a typical Wiltshire household with a 4kW solar system and no battery storage, approximately 25–35% of total generation is exported to the grid. With battery storage, this typically falls to 10–15% as more generation is captured for self-consumption.
Eligibility requirements:
- Your solar installation must be MCS certified (or certified under an equivalent scheme)
- You must have a smart meter that can measure export separately from import
- Your system must be no larger than 5MW (well above residential scale)
- You must register with a licensed SEG licensee (an electricity supplier offering SEG)
Current SEG Rates in 2026
Rates vary by provider and change over time. These figures are indicative for April 2026 — always check the latest rates directly with each provider.
| Provider | Rate (p/kWh) | Notes |
|---|---|---|
| Octopus Energy | 15p/kWh | Market-leading rate. Flexible SEG with time-varying export options available. |
| E.ON Next | 5.6p/kWh | Consistent mid-range rate. Simple flat-rate export payment. |
| British Gas | 5.5p/kWh | Standard rate from largest UK supplier. |
| EDF Energy | 4.5p/kWh | Lower rate but widely available. |
| Scottish Power | 4p/kWh | Entry-level rate. |
Octopus Energy consistently offers the highest SEG rates and has introduced innovative time-of-use export tariffs — including its Agile Outgoing product — that pay more during high-demand periods. For homeowners with battery storage who can optimise when they export, these smart tariffs can significantly increase SEG income.
How Much Can You Earn? A Wiltshire Example
For a typical Wiltshire home with a 4kW solar system (no battery), here is a realistic SEG income calculation:
- Total annual generation: approximately 3,920 kWh (at 980 kWh/kWp irradiance)
- Export percentage (no battery): approximately 30% = 1,176 kWh exported
- At 5p/kWh (standard rate): £58.80/year
- At 10.8p/kWh (mid-range rate): £127/year
- At 15p/kWh (Octopus best rate): £176.40/year
With battery storage (10kWh unit), export typically falls to around 10–15% of generation:
- Export with battery: approximately 588 kWh/year
- SEG income at 10.8p/kWh: £63.50/year
- But self-consumption increase saves: additional £300–£400/year at current electricity prices
The net financial impact of adding battery storage is strongly positive, even though SEG income is reduced. The avoided import savings far outweigh the reduction in export income. See our battery storage guide for the full analysis.
How to Register for the Smart Export Guarantee
SEG registration is a straightforward process that we handle for every customer as part of our post-installation service. The steps are:
- Confirm smart meter compatibility. Your meter must be able to measure export — all second-generation (SMETS2) smart meters can do this. We check this at installation.
- Obtain your MCS certificate. We provide this to every customer on completion of installation. You will need the MCS certificate number to register for SEG.
- Compare current SEG rates. Check the rates offered by your current energy supplier and major competitors. You do not need to switch your electricity supply to switch your SEG provider.
- Apply to your chosen SEG licensee. Most providers offer online SEG registration. You will need: your MCS certificate number, installation address, system capacity, and smart meter serial number.
- Await confirmation and meter reading setup. Your SEG provider will set up half-hourly export metering and begin collecting data. First payment is usually made within 3 months of registration.
We register every installation for SEG as standard. Customers who received installations before the SEG launched (i.e., installations completed under the old FiT scheme) are not eligible for SEG — FiT and SEG cannot be held simultaneously.
SEG Quick Reference
Costs & Savings
Honest numbers on what solar costs and what you earn back
Related guide
Solar Panel Grants & Incentives 2026Full overview of all available incentives including SEG, 0% VAT, and ECO4.
SEG FAQs
Yes, always. SEG registration is free, straightforward, and generates passive income from electricity you would otherwise give to the grid for nothing. Even at the lowest current rates of around 3p/kWh, a 4kW system exporting 30% of its generation earns approximately £50–£100/year. At higher rates of 10–15p/kWh offered by competitive providers, the same export profile earns £175–£250/year. Registration typically takes 2–4 weeks and we handle this as part of every installation.
The Feed-in Tariff (FiT) was a government-funded scheme that paid a fixed rate for every unit of electricity generated — whether you used it or exported it — plus an additional export payment. The FiT closed to new applicants in April 2019. The Smart Export Guarantee replaced it as a market-based scheme: licenced energy suppliers are obliged to offer an export tariff, but rates are set commercially, vary between suppliers, and are not subsidised by government. The key difference is that SEG pays only for exported electricity, not total generation.
Yes. You can switch SEG provider at any time by de-registering from your current supplier and registering with a new one. Given that rates vary significantly between providers and change over time, it is worth reviewing your SEG arrangement annually. You do not need to switch your main electricity supplier to change your SEG provider — they can be different companies.
Yes. A smart meter — specifically one that can measure export as well as import — is required for SEG registration. Most homes now have smart meters, and if you do not, your energy supplier is obliged to offer you one free of charge. We check smart meter compatibility as part of every installation and can advise if any upgrade is needed.
Battery storage reduces the amount of electricity you export to the grid by capturing your midday generation surplus for evening use. This reduces your SEG income but increases your self-consumption income (the electricity you avoid buying at 24–28p/kWh). In almost all cases, the financial gain from increased self-consumption outweighs the reduction in export income — adding battery storage is a net positive for most homeowners even accounting for reduced SEG payments.
Solar Panels with SEG Registration Included
Every Lumos Energy installation includes MCS certification and Smart Export Guarantee registration. We handle the paperwork so you start earning from day one.
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