Understanding the Smart Export Guarantee

When your solar panels generate more electricity than your home is using at that moment, the surplus flows back into the national grid. The Smart Export Guarantee (known as SEG) is the government-backed scheme that ensures you get paid for it.

How it works

Under SEG, energy suppliers with more than 150,000 customers are required to offer an export tariff to solar panel owners with a qualifying installation. You register with a supplier, they fit or verify your export meter, and from then on any electricity you export is measured and paid for at a rate agreed in your tariff.

You do not have to buy your electricity from the same supplier you export to. Many households sell their surplus to one supplier while buying their import electricity from another, often because the best export rates and the best import rates come from different companies.

What rates look like

SEG rates vary by supplier and change over time, so specific figures go out of date quickly. As a general guide, export tariffs have typically ranged from around 3p to 15p per kWh in recent years. Some suppliers offer fixed rates for a set period; others are variable.

The rate matters, but it’s worth keeping perspective on the numbers. Export earnings for a typical household are a useful bonus rather than the primary financial case for solar. Most of the savings come from using your own generated electricity instead of buying it from the grid: the avoided cost, not the export payment.

Maximising what you export

A few factors affect how much you export and how much you keep.

The simplest is timing. Running energy-hungry appliances (dishwasher, washing machine, tumble dryer) during the middle of a sunny day means you’re using your own generation rather than exporting low-price electricity and later buying expensive grid electricity back.

Battery storage changes the equation significantly. Instead of exporting surplus at the SEG rate, a battery stores it and releases it in the evening when you would otherwise be buying from the grid. At current electricity prices, self-consumption through a battery is generally worth more per unit than exporting it, depending on the export rate you can achieve.

Applying for SEG

You need an MCS-certified installation to qualify for SEG. Most energy suppliers also require a smart meter capable of recording half-hourly export readings. We handle the MCS certification as part of every installation, and we help customers with the supplier application as standard.

If your installation predates the SEG (which replaced the Feed-in Tariff in January 2020), you may still be on the old FIT scheme, in which case the rules are different and generally more favourable. Check your supplier paperwork if you’re unsure.

The broader picture

SEG income, combined with savings on electricity bills, is what makes the financial case for solar. At current electricity prices, most MCS-certified installations in England pay back within seven to ten years, leaving 15 or more years of near-free electricity and export income on top. The exact numbers depend on your roof, your usage, and the system size, which is why a proper survey is the starting point.