The Smart Export Guarantee
Make money on your solar power by selling your excess renewable energy back to the grid.
The SEG is a government-backed initiative compelling large energy suppliers to pay homeowners for the renewable energy that they don’t use themselves and send back to the National Grid. It is:
What is the Smart Export Guarantee? (SEG)
Hugely beneficial to homeowners looking to save money with solar panels
You’re likely to export half of your power back to the Grid
You must sign up for an SEG tariff, otherwise your excess energy will automatically return to the grid and you won’t receive payment. So why not get paid for it?
How does the SEG work?
First, you need to own a renewable energy source and you need to sign up with an energy supplier to an approved SEG tariff.
As shown, the SEG pays for the excess energy that you generate.
Depending on your tariff supplier, the prices vary, so it is worth taking a look at what is available to find the best deal.
To take a look at a list of companies providing the SEG, click here.
Frequently Asked Questions
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Yes, although prices can vary. In April 2023, companies paid anywhere between 1p/kWh and 15p/kWh – so it is worth shopping around for the best deal.
Please note, some suppliers have rates that are only available to their own customers. You can check your current provider’s tariff here.
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The average owner of a three-bedroom house with a 3.5 kWp solar panel system will earn £85 per year from the SEG. This is based on British Gas‘s 6.4p per kWh rate, which anyone can sign up for.
Prices can be fixed or variable – meaning that a fixed SEG tariff will pay the same price per kWh of electricity exported and a variable will alter the price depending on market demand. However, prices can never fall below zero.
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If your SEG company supplies your electricity, your payment may be a deduction from your monthly energy bill.
If not, you’ll be paid by bank transfer.
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You will see a reduction in the units on your electricity bill as you will be using renewable power generated from your home, and therefore buying less from the grid.
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You need to meet the following criteria:
Your installation must have a maximum capacity of up to 5 MW.
Your installation must be Microgeneration Certification (MCS) certified.
Your meter can take half-hourly readings for electricity.
You can provide your SEG company with your export MPAN – your MPAN is usually on the reverse of your bill, in the box marked as “Supply Number”. It is the bottom row of 13 digits. If you can’t find your MPAN call your electricity provider.
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The FIT closed to new applicants in March 2019, so you can no longer apply.
The significant difference is that the FIT paid households for producing electricity and the SEG pays households for producing excess renewable energy.
FIT payments are more of an estimation (50% of total electricity generated) set by Ofgem and the Government.
SEG payments are a calculated amount, based on how much you export and the tariff rate set by your provider.
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Where possible, you might find that you make small changes to your daily habits so that you stagger your energy consumption to during sunlight hours. For instance, you might want to put the washing machine or tumble dryer on during lunchtime. This way you will be making sure that you are using the electricity generated from the Solar PV, rather than buying it from the grid during peak times - especially if it cannot be stored.