Smart Export Guarantee: Earning from Solar

The Smart Export Guarantee (SEG) lets households in Great Britain with solar panels get paid for electricity they export to the grid. There is no set rate: each supplier chooses its own, so what you earn depends on your tariff and how much you export. This guide explains how SEG works, who qualifies, what rates looked like when they were last published, and how to get the most from your solar panels.

What is the Smart Export Guarantee?

The Smart Export Guarantee is a government scheme regulated by Ofgem. Energy suppliers with at least 150,000 domestic electricity customers must offer SEG payments to eligible generators, and smaller suppliers can choose to. It started on 1 January 2020, after the Feed-in Tariff (FIT) closed to new applicants from 1 April 2019.

There is no set SEG rate. The only rule is that any SEG tariff must always pay more than zero. In Solar Energy UK's league table, updated on 12 May 2026, rates ranged from 1p to 25p per kWh, and the higher rates came with conditions.

How SEG Works

When your solar panels generate more electricity than your home is using, the surplus flows to the grid. Your meter records what you export, and your SEG supplier pays you for it at your tariff rate.

1. Solar panels generate electricity
2. Your home uses what it needs at that moment
3. Any surplus flows to the grid
4. Your meter records the units you export
5. Your SEG supplier pays you for those units

Who Qualifies for SEG Payments?

Eligibility Requirements

• Installation type: solar PV, wind, micro combined heat and power (micro-CHP), hydro or anaerobic digestion
• Capacity: up to 5MW, or up to 50kW for micro-CHP
• Certification: certified through the Microgeneration Certification Scheme (MCS) or a scheme accredited as equivalent, such as Flexi-Orb
• Meter: one capable of providing half-hourly export readings
• Location: the installation must be in Great Britain; SEG is not available in Northern Ireland

Check the Certification Before You Sign

Without the right certificate you cannot get SEG payments, however well the system performs. Check any installer on the MCS register before you agree to anything.

What Meter Do You Need?

GOV.UK says you must have a meter capable of providing half-hourly export readings. Ask your chosen SEG supplier whether your existing smart meter is suitable or whether you need a different meter.

SEG Rates in May 2026

Solar Energy UK's league table groups tariffs by their conditions. The examples below are taken from the version updated on 12 May 2026. Rates change often and tariffs can close, so check the supplier's own website before you decide. This is not a recommendation of any supplier.

Source: Solar Energy UK, updated 12 May 2026. Per kWh exported. A selection only; see our SEG tariff guide for the full May 2026 list.

Variable and Time-of-Use Export Tariffs

Some export tariffs pay different rates at different times of day, so Solar Energy UK lists them as a range rather than a single rate (Octopus Flux is one example). They are harder to compare, and generally suit people who can control when they export, usually with a battery.

How Much Can You Earn from SEG?

SEG income depends on your system size, your roof, your export rate, and how much electricity you use while the panels are generating. If you are out all day, more of your solar power is exported. If you are at home, or have a battery, you use more of it yourself. To estimate your own income, multiply the units you expect to export by your tariff rate; your installer's quote should estimate your generation.

Energy Saving Trust Estimates

Estimated annual savings with SEG payments / without them, for a four-bedroom detached home, based on fuel prices as of July 2026. Source: Energy Saving Trust. EST does not state the system size or the export rate it assumes, so your figures could be quite different. Typical figures, last reviewed September 2026.

Getting the Most from Your Solar

Under the Ofgem price cap for 1 October to 31 December 2026, electricity costs 26.32p per kWh on average (VAT has been removed from electricity bills until 31 March 2027). That is more than any SEG rate in the May 2026 table, so using your own solar power usually saves more than exporting it.

1. Choose the Right Tariff for Your Situation

Don't automatically accept the first SEG offer you see. In May 2026:

• Open tariffs paid 1p to 6p and let you keep your current electricity supplier
• Tariffs paying 5.6p to 15.1p required you to buy electricity from that supplier, so compare its import price too
• The highest rates (15p to 25p) required that supplier to have installed your solar panels or battery

Your SEG supplier does not need to be the company that supplies your electricity, unless the tariff you choose requires it.

2. Think Carefully About a Battery

A battery reduces what you export but lets you use more of your own electricity in the evening:

• Export 1 kWh: earn your tariff rate (1p to 25p in May 2026)
• Use 1 kWh yourself: avoid buying it, at around 26.32p under the October to December 2026 price cap
• Battery storage costs around £5,000 to £8,000 (Energy Saving Trust), so check the extra savings justify it

3. Use More Electricity While the Sun Shines

• Run washing machines and dishwashers in the middle of the day
• Charge an electric vehicle while the panels are generating
• Use timers to move usage into sunny periods
• Consider heating water with surplus solar power

Each unit you use yourself instead of exporting is worth the difference between what you pay for electricity and what your export tariff pays.

4. Review Your Tariff From Time to Time

• Compare your rate with what suppliers offer now
• Check your current tariff's terms, as some are fixed for a set period
• If a new tariff means switching your electricity supply too, compare the whole package

How to Sign Up for SEG

Suppliers' requirements vary, but you will usually be asked for your MCS (or equivalent) certificate, your meter details and readings, and your bank details.

1. Complete installation: your installer commissions the system and provides the certificate.
2. Check your meter: it must be capable of half-hourly export readings. Ask the SEG supplier if you are unsure.
3. Choose an SEG supplier: compare tariffs and their conditions.
4. Apply: apply through the supplier with your certificate and meter details.
5. Confirmation: the supplier confirms your export rate and payment terms.
6. Check the start date: ask from what date your exports will be paid, and apply promptly.

SEG Payment Terms and Tax

How often you are paid, and whether payments go to your bank account or your energy account, varies by supplier. Check before you sign up.

This guide does not give tax advice. If you are unsure whether your export income is taxable, particularly if the system is part of a business or on a property you let, check with HMRC or a tax adviser.

SEG vs Feed-in Tariff (FIT): What Changed?

Feed-in Tariff (Closed to New Applicants)

• Closed to new applicants from 1 April 2019
• Pays for electricity generated as well as exported
• Existing participants receive support for between 10 and 25 years, depending on the installation

Smart Export Guarantee (Current)

• Pays only for exported electricity
• Rates set by suppliers and always above zero (1p to 25p per kWh in May 2026)
• Terms vary by tariff, and rates can change
• You choose your SEG supplier

Because export payments are generally lower than the unit price of electricity, the value of solar now comes mainly from using the electricity yourself, with SEG income on top.

Making the Most of SEG

Treat SEG income as a bonus on top of the main benefit of solar panels: buying less electricity. Use as much of your solar power as you can, compare export tariffs and their conditions, and only add a battery if the extra savings justify the cost. For the current scheme rules, see Ofgem's SEG page.

Solar panel installations are zero-rated for VAT until 31 March 2027, then 5%.

UK Energy Partnership is run by Harber Glaves Trading Ltd. We are not a government body, Ofgem or an energy supplier, and we don't set or pay SEG rates. Check current tariffs with suppliers.