Smart Export Guarantee (SEG) Explained – How Solar Export Payments Work

INTRO

If you’re considering solar panels, you may have heard about being paid for exporting electricity back to the grid. In the UK, this is done through the Smart Export Guarantee (SEG). This guide explains what SEG is, how it works and what you need to qualify.

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WHAT IS THE SMART EXPORT GUARANTEE (SEG)?

The Smart Export Guarantee is a government-backed scheme that allows homeowners and businesses to get paid for surplus renewable electricity exported to the grid.

Rather than a fixed rate, SEG payments are set by energy suppliers and paid per kilowatt-hour (kWh) exported.

‍Ofgem – Smart Export Guarantee (SEG) →

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HOW DOES SEG WORK?

When your solar panels generate more electricity than you’re using, the excess energy is exported to the grid.

Your export meter records how much electricity you export, and your energy supplier pays you for that exported energy under their SEG tariff.

SEG payments are typically made quarterly, but this varies by supplier.

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WHO CAN GET SEG PAYMENTS?

To qualify for SEG, you’ll usually need:

- A solar PV system up to 5MW capacity

- An MCS-certified installation

- A smart meter capable of measuring export

- A contract with a SEG-licensed energy supplier

Solar panels in Hampshire →

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HOW MUCH DOES SEG PAY?

SEG rates vary between suppliers and can change over time.

Some suppliers offer fixed rates, while others offer variable or time-based rates. Because of this, SEG is best viewed as a bonus rather than the main financial driver for installing solar.

Using more of your own solar energy on-site typically delivers better value than exporting it.

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SEG VS BATTERY STORAGE

Adding battery storage allows you to store excess solar energy instead of exporting it straight away.

This can:

- Increase self-consumption

- Reduce reliance on the grid

- Improve overall savings

Many homeowners use a combination of battery storage and SEG export to get the most out of their system.

Battery storage in Hampshire →

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DO I NEED TO APPLY FOR SEG?

SEG contracts are arranged directly with your chosen energy supplier.

Once your solar system is installed and certified, you can apply to a SEG supplier of your choice. Your installer can provide the required MCS documentation as part of the handover.

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COMMON SEG MISCONCEPTIONS

- SEG is not a replacement for the old Feed-in Tariff

- Payments are not guaranteed at a fixed rate

- SEG works best alongside good system design and energy usage habits

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FINAL THOUGHTS

SEG can provide a useful return on surplus solar energy, but the biggest benefits of solar usually come from using the electricity you generate.

A well-designed system, matched to your usage and future plans, will always outperform one designed purely around export payments.

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