Information Notice
SEG information is sourced from Ofgem and government publications. Tariff rates are set commercially by individual suppliers and change regularly. We are an independent information service. Always check current rates directly with suppliers before making decisions.
What Is the Smart Export Guarantee?
According to Ofgem, the Smart Export Guarantee (SEG) is a government-backed initiative introduced in January 2020 to replace the Feed-in Tariff. It requires all licensed electricity suppliers with 150,000 or more domestic customers to offer at least one export tariff to eligible small-scale generators.
When your solar panels generate more electricity than your home is using, the surplus is exported to the National Grid. Under the SEG, your energy supplier pays you for every kilowatt-hour (kWh) you export.
Unlike the old Feed-in Tariff, SEG rates are set commercially by suppliers rather than by the government. This means rates vary between suppliers and can change over time. You are free to choose any SEG licensee as your export supplier, regardless of who supplies your imported electricity.
How Does SEG Work?
Generate
Your solar panels generate electricity during daylight hours. You use what you need in your home first.
Export
Any surplus electricity that you do not use or store in a battery is automatically exported to the National Grid.
Get Paid
Your smart meter records how much you export. Your SEG supplier pays you for every kWh exported, usually quarterly.
SEG Tariff Rates
Comparing SEG Offers
According to Ofgem, SEG rates vary by supplier and change regularly. Some suppliers offer fixed rates per kWh exported, while others offer variable rates that may be linked to wholesale electricity prices. There is no government-set minimum rate, but the tariff must be greater than zero.
To find the best current SEG rate, check offers directly from all participating suppliers. You do not need to buy your electricity from the same supplier you export to, so shop around for the best combination of import and export tariffs.
Key Points When Comparing SEG Tariffs
- Fixed rates offer certainty; variable rates may pay more when wholesale prices are high
- Some tariffs require you to also buy your electricity from the same supplier
- Check the payment frequency: some suppliers pay quarterly, others less frequently
- You can switch SEG supplier without affecting your electricity supply
SEG Eligibility Requirements
You Need
- Solar PV system up to 5MW capacity (source: Ofgem)
- Installation by an MCS-certified installer
- Valid MCS certificate for your installation
- A smart meter capable of recording export data
How to Apply
- 1. Ensure your solar installation is MCS-certified and you have the certificate
- 2. Request a smart meter from your electricity supplier if you do not have one
- 3. Compare SEG tariffs from all participating suppliers
- 4. Apply to your chosen SEG supplier with your MCS certificate details
- 5. Once registered, export payments begin from your next meter reading
SEG vs Feed-in Tariff
| Feature | Feed-in Tariff (closed) | Smart Export Guarantee |
|---|---|---|
| Status | Closed to new applicants (March 2019) | Open to new applicants |
| Generation payment | Paid for all electricity generated | No generation payment |
| Export payment | Government-set rates | Commercially set by suppliers |
| Rate setting | Fixed by government, index-linked | Varies by supplier, can change |
Source: Ofgem SEG guidance documents. Existing Feed-in Tariff recipients continue to receive their payments for the full 20-year term.
Check Your Solar Panel Eligibility
Some households may qualify for subsidised solar panel installation through government schemes, making SEG income accessible sooner.
Key Eligibility Factors:
- Low-income household
- Property EPC rating D-G
- Owner-occupier or private tenant
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