Understanding the Smart Export Guarantee (SEG)

Helpful video reference. We use E.ON Next's "Smart Export Guarantee (SEG) explained" (January 2026) as the video reference here. E.ON Next is one of the UK's largest licensed electricity suppliers and a mandatory SEG provider, and the video covers the qualification steps and registration process clearly.

1. What the Smart Export Guarantee is

When your solar panels generate more electricity than your home uses at any given moment, the surplus flows back into the grid. Without any arrangement in place, you give that electricity away for free. The Smart Export Guarantee (SEG) is the government-backed scheme that obliges licensed electricity suppliers to pay you for those exports.

It replaced the Feed-in Tariff (FiT), which closed to new applicants in April 2019. Unlike the FiT, the SEG does not pay a generation tariff -- only export. The key difference matters: under the FiT, you were paid for around half your generation whether you exported it or not. Under the SEG, you only get paid for what you actually export. Self-consumption still reduces your import bill, but the financial case for the SEG depends on how much you genuinely export.

2. Who qualifies

To register for a SEG tariff:

• Your solar PV installation must be MCS-certified and below 5 MW in capacity. Domestic rooftop systems are typically 3 kWp to 6 kWp, comfortably within this limit.
• You must have a working smart meter (SMETS2, or a SMETS1 meter enrolled in the Data Communications Company). Without one, your supplier cannot measure your exports accurately and most competitive tariffs will not be available.
• The property must be in Great Britain (England, Scotland or Wales). Northern Ireland has its own separate scheme.

Battery storage does not disqualify you from SEG payments, but the rules are clear: you cannot be paid for electricity discharged from a battery that was charged from the grid. Most suppliers' terms reflect this, and smart meters can usually distinguish imported versus solar-charged export.

3. How export rates work

Suppliers with more than 150,000 domestic electricity customers are legally required to offer at least one SEG tariff. Smaller suppliers can offer one voluntarily. Rates fall into two broad types:

• Fixed-rate tariffs: you receive a set pence-per-kWh rate for every unit exported, regardless of when you export it. Predictable and easy to account for, but you may miss periods when wholesale prices are high.
• Variable-rate tariffs: the export rate follows wholesale electricity prices, typically on a half-hourly or daily basis. These can pay significantly more than fixed rates during periods of high demand, but earnings are less predictable.

Rates in 2026 range from around 6p/kWh at the lower end to 17.5p/kWh or more on the best fixed-rate contracts. Comparison sites and MCS-registered installer associations publish up-to-date rate tables -- it is worth spending 15 minutes comparing before you register.

4. How to register

Registration is straightforward once you have your paperwork to hand. You will need:

• Your MCS installation certificate (issued by your installer at completion)
• The system's installed capacity in kWp
• Your smart meter's MPAN (Meter Point Administration Number) and serial number
• Your current electricity supplier account details

You do not have to register with your current electricity supplier. You can choose any licensed SEG provider. Some homeowners keep their import tariff with one supplier and their export with another -- this is entirely permitted and worth considering if a different supplier offers a much better export rate.

5. How much you might earn

A typical 4 kWp south-facing solar system in south-east England generates around 3,400 kWh per year. A household that is out during the day might use 30% of that on-site (around 1,000 kWh) and export the remaining 70% (around 2,400 kWh).

At a fixed export rate of 15p/kWh, that is around £360 per year in SEG payments. At the best current variable rates during summer afternoons, payments per unit can be higher -- but winter export during low-demand periods can fall below 5p/kWh.

The SEG earnings are on top of the savings on your import bill during the hours when the panels are generating. For most households, the import saving is larger than the SEG payment.

6. What SEG does not cover

A few things to be aware of:

• If you have a battery, you cannot claim SEG for electricity the battery discharges to the grid that was imported from the grid in the first place.
• The SEG does not cover commercial-scale installations or social housing landlords in most cases (though specific rules apply).
• Pre-2019 FiT recipients cannot switch to SEG while still receiving FiT generation payments on the same installation.
• If your inverter develops a fault and stops exporting, your SEG earnings drop to zero. Monitoring your generation figures regularly is the best early-warning system.

When to call us

Richard does not handle SEG registration -- that is done directly with your energy supplier. But if your solar system needs an inspection, a fault found, or you are considering adding battery storage to improve self-consumption and reduce exports, call or send a WhatsApp with photos.