What Is the Smart Export Guarantee?
The Smart Export Guarantee (SEG) is a UK government scheme that requires licensed electricity suppliers to offer a tariff for small-scale renewable electricity exported to the grid. In plain terms, when your solar panels generate more electricity than your home is using — which happens frequently during sunny periods — you get paid for the surplus. The key requirements are that your installation must be MCS-certified and you must have a smart meter. A typical 4 kWp system in southern England exports approximately 1,700–2,000 kWh per year (without battery storage), earning £70–£220 per year depending on the tariff you choose.
Related reading: Solar panel costs in 2026: what UK homeowners actually pay | Solar battery storage: is it worth it in 2026?
How the Smart Export Guarantee Works
1. You generate solar electricity
Your solar panels produce electricity from daylight. A typical 4 kWp domestic system in the London/Surrey area generates approximately 3,400 kWh per year.
2. You use what you need
Electricity generated by your panels is used first to power your home (self-consumption). Every kWh you use from your panels is a kWh you do not buy from the grid at 24.5p/kWh (Ofgem, Q2 2026).
3. Surplus is exported to the grid
When your panels are generating more than your home is using, the surplus automatically flows out through your meter and into the grid.
4. Your SEG supplier pays you for exports
Your chosen SEG supplier pays you a set rate per kWh of exported electricity. Rates vary significantly between suppliers, from as low as 1p/kWh to as high as 15p/kWh on the best variable tariffs.
5. Payment is based on meter readings
A SMETS2 smart meter or an export meter records how much electricity you export. Your SEG supplier uses this data to calculate your payments, which are typically made quarterly.
SEG Tariff Rates: Supplier Comparison (2026)
Fixed-rate SEG tariffs
| Supplier | Tariff name | Export rate (p/kWh) | Payment frequency | Contract length |
|---|---|---|---|---|
| Octopus Energy | Outgoing Fixed | 4.1p | Monthly | 12 months |
| OVO Energy | SEG Tariff | 4.0p | Quarterly | Rolling |
| SO Energy | SEG Export | 3.8p | Quarterly | Rolling |
| E.ON Next | Next Export | 3.5p | Quarterly | 12 months |
| Scottish Power | Smart Export | 3.3p | Quarterly | Rolling |
| British Gas | Export and Earn | 3.2p | Quarterly | Rolling |
| Shell Energy | Export Tariff | 3.1p | Quarterly | Rolling |
| EDF Energy | Export Fixed | 3.0p | Quarterly | Rolling |
Variable and agile SEG tariffs
| Supplier | Tariff name | Typical rate range | Payment frequency | Notes |
|---|---|---|---|---|
| Octopus Energy | Outgoing Agile | 1–30p (avg ~7–8p) | Monthly | Rate tracks wholesale market every 30 minutes |
| Octopus Energy | Flux | 8–24p (avg ~12p) | Monthly | Requires Octopus import tariff; pays more at peak times |
| Social Energy | Variable SEG | 5–15p (avg ~7p) | Quarterly | Premium for peak-hour exports |
Key observations
- Octopus Energy consistently offers the most competitive rates, particularly through its Flux tariff and its Outgoing Agile tariff.
- Fixed-rate tariffs offer simplicity and predictability. You know exactly what you will earn per kWh.
- Variable tariffs can pay significantly more, but the amount fluctuates with market conditions.
- Your SEG supplier does not have to be your electricity supplier. You can buy electricity from one company and sell your exports to another.
How Much Can You Earn from the SEG?
For a typical 4 kWp system in the London/Surrey area:
- Annual generation: 3,400 kWh
- Self-consumption rate: 40–50% (without battery), 70–80% (with battery)
- Annual export (no battery): approximately 1,700–2,000 kWh
- Annual export (with battery): approximately 700–1,000 kWh
Estimated annual SEG income
| Scenario | Export volume | Tariff rate | Annual income |
|---|---|---|---|
| No battery, fixed tariff (4p/kWh) | 1,850 kWh | 4.0p | £74 |
| No battery, Agile tariff (avg 8p/kWh) | 1,850 kWh | 8.0p | £148 |
| No battery, Flux tariff (avg 12p/kWh) | 1,850 kWh | 12.0p | £222 |
| With battery, fixed tariff (4p/kWh) | 850 kWh | 4.0p | £34 |
| With battery, Agile tariff (avg 8p/kWh) | 850 kWh | 8.0p | £68 |
The bigger picture: total solar value
SEG income is only part of the financial benefit. The real savings come from the electricity you do not buy from the grid. Here is the full picture for a 4 kWp system without a battery:
| Value stream | Annual value |
|---|---|
| Avoided grid electricity (1,550 kWh at 24.5p) | £380 |
| SEG export income (1,850 kWh at 4.0p fixed) | £74 |
| Total annual value | £454 |
With a system cost of approximately £5,500–£7,000, that gives a payback period of roughly 12–15 years on the fixed SEG tariff. On a variable tariff averaging 8p/kWh, payback drops to approximately 10–13 years (Energy Saving Trust).
Related reading: Solar panels and heat pumps: the perfect combination
SEG Eligibility Requirements
1. Your installation must be MCS-certified
This is the single most important requirement. Your solar panel system must be installed by an MCS-certified installer, and you must have an MCS certificate for the installation. Without this certificate, no SEG supplier will accept you.
All installations by Electromatic M&E Ltd are completed under MCS certification via our accredited umbrella partner, and every installation comes with the necessary MCS certificate.
2. Your system must be 5 MW or less
All domestic solar installations fall well within this limit. A typical home system is 3–5 kWp.
3. You must have a smart meter or export meter
A SMETS2 smart meter records your exports automatically. If you do not have one, your electricity supplier must install one for free. We recommend requesting a smart meter from your supplier ahead of installation.
4. You must not receive Feed-in Tariff (FIT) payments
The SEG and FIT are mutually exclusive. If your existing solar panels are already on the Feed-in Tariff, you cannot also claim the SEG.
5. You must be the owner or authorised occupant
You need to own the property or have the property owner’s permission to install solar panels and apply for the SEG.
How to Apply for the SEG
- Install your solar panels with an MCS-certified installer. You will receive an MCS certificate and commissioning certificate on completion.
- Ensure you have a SMETS2 smart meter — request one from your electricity supplier if needed.
- Choose your SEG supplier — compare fixed vs variable rates and payment frequency.
- Apply online — you will need your MCS certificate number, MPAN number (from your electricity bill), smart meter details, and bank account details.
- Start earning — once approved (typically within 1–2 weeks), exports will be tracked and paid according to your chosen tariff.
Maximising Your SEG Earnings
Time your exports
If you are on a variable tariff like Octopus Agile, electricity export rates are highest during afternoon and evening peak hours (roughly 4pm–7pm). A battery storage system allows you to store solar electricity generated during the middle of the day and export it during peak hours for maximum payment.
Consider Octopus Flux for maximum value
The Octopus Flux tariff is designed specifically for homes with solar and battery storage. It offers premium export rates during peak hours (typically 12–15p/kWh from 4pm–7pm) and cheap import rates overnight (7–10p/kWh).
Pair solar with a heat pump
A heat pump increases your daytime electricity consumption, which means more of your solar generation is used directly rather than exported at lower SEG rates. This increases the overall financial value of your solar system.
Related reading: UK energy bills in 2026: why now is the time to switch | Heat pump running costs: what do you actually pay?
SEG vs Feed-in Tariff: Understanding the Difference
| Feature | Feed-in Tariff (closed) | Smart Export Guarantee |
|---|---|---|
| Generation payment | Yes (paid per kWh generated) | No |
| Export payment | Yes (5.24p/kWh deemed) | Yes (varies by supplier) |
| Typical total payment (4 kWp) | £500–800/yr | £70–220/yr (export only) |
| Solar panel cost (4 kWp) | £6,000–8,000 (in 2015) | £5,500–7,000 (in 2026) |
| Duration | 20–25 years | Rolling or annual |
While SEG payments are lower, solar panel costs are also significantly lower than they were during the FIT era. The value of avoided grid electricity (now worth 24.5p/kWh versus 14p/kWh in 2015) more than compensates. The total financial return on a solar investment in 2026 is competitive with the FIT era.
How Electromatic Can Help
Electromatic M&E Ltd offers free home surveys across London and Surrey (TW, KT, SW postcodes). We install ASHP and solar PV from a single contractor, and deliver within 2–4 weeks of survey confirmation. All work is carried out under MCS certification via our accredited umbrella partner — ensuring your installation qualifies for the Smart Export Guarantee from day one. We also handle BUS Grant applications for heat pump customers (subject to eligibility criteria set by Ofgem).
Call us: 07718 059 284 | Email: admin@electromatic.uk
Frequently Asked Questions
How much can I earn from the Smart Export Guarantee?
A typical 4 kWp solar system in the London area exports approximately 1,700–2,000 kWh per year (without a battery). At a fixed SEG rate of 4p/kWh, that earns £70–£80 per year. On the best variable tariffs (Octopus Agile or Flux), earnings can reach £150–£220 per year. The SEG income is in addition to the much larger savings from using solar electricity yourself rather than buying from the grid at 24.5p/kWh (Ofgem, Q2 2026).
Do I need MCS certification for the SEG?
Yes. MCS certification is mandatory for SEG eligibility. Your solar panels must be installed by an MCS-certified company, and you must have an MCS certificate for the installation. Without MCS certification, no SEG supplier will accept your application. All Electromatic installations are completed under MCS certification via our accredited umbrella partner and include the necessary documentation.
Can I choose a different SEG supplier from my electricity supplier?
Yes. Your SEG export supplier and your electricity import supplier can be completely different companies. This allows you to shop around for the best export rate independently of your main electricity tariff. Many homeowners buy electricity from one supplier and export to Octopus Energy for the best SEG rates.
Do I need a battery to get the SEG?
No. A battery is optional. Without a battery, you will export more electricity (higher SEG income) but self-consume less (lower avoided grid cost savings). With a battery, you export less but save more by using stored solar electricity in the evenings. Both approaches are financially sound — the optimal choice depends on your battery cost, tariff rates, and usage patterns.
Is the Smart Export Guarantee taxable?
For most domestic homeowners, SEG income is not taxable. HMRC provides a trading allowance of £1,000 per year for miscellaneous income, and domestic SEG earnings typically fall well below this threshold. If your installation is on a commercial property or generates income above the trading allowance, you should consult an accountant.
The information in this article is for general guidance only and does not constitute financial, legal, or technical advice. SEG tariff rates are correct as of Q1 2026 and are subject to change by suppliers without notice. Energy savings estimates are based on typical UK household data from the Energy Saving Trust and Ofgem (April 2026 price cap: electricity 24.5p/kWh). Actual earnings depend on your solar generation, self-consumption, chosen tariff, and electricity usage patterns. The Boiler Upgrade Scheme (BUS) grant of £7,500 is subject to eligibility criteria set by Ofgem — not all properties qualify. Electromatic M&E Ltd operates under MCS certification via our accredited umbrella partner. All installations comply with Building Regulations Part L and MCS standards. E&OE.
Written by Electromatic M&E Ltd — ASHP & Solar installer, London & Surrey (electromatic.uk)
Last updated: April 2026 | Electromatic M&E Ltd, Company No. 13837345
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