If you have solar panels, there will be times when you make more power than your home needs. The Smart Export Guarantee lets you sell that surplus to the grid. This way, the clean energy does not go to waste. You get a payment for every unit you export.
It is a simple idea. You become a tiny power station, and your energy supplier pays you for the surplus you contribute. This guide explains what the scheme is and how it works in practice. It also covers what it could mean for your household finances.
What is the Smart Export Guarantee?
The Smart Export Guarantee (often shortened to SEG) is a government-backed rule. It requires larger licensed electricity suppliers to offer a tariff. That tariff pays households for the renewable electricity they export. In plain English, if your panels make more power than you need, you can earn money on the excess. You do not have to give it away.
The scheme replaced the older Feed-in Tariff. It applies to solar PV, wind, hydro, micro-CHP and anaerobic digestion up to a capacity of 5 megawatts. That is more than enough for any domestic installation.
Only suppliers with 150,000 or more domestic customers must offer at least one SEG tariff. Smaller suppliers may offer one voluntarily, but you will always find an option among the major names. Each supplier sets its own rate. It pays to shop around rather than accept the first offer you see.
How does SEG work day to day?
When your panels generate power, your home uses that electricity first. It might power your kettle, fridge or lights, or charge an electric vehicle, while the rest goes to the grid. Any surplus flows out through your meter onto the local network.
A compatible export meter records exactly how many kilowatt-hours leave your property. This is usually a modern smart meter set up for export, since older meters cannot do the job. Your supplier then pays you for those exported units at the agreed SEG tariff rate.
Payments typically arrive quarterly or half-yearly. They come either as a credit on your bill or as a direct bank transfer. You do not need to change your existing import supplier to get an export tariff. You can buy electricity from one company and sell your surplus to another if their rate is better.
You only need two things. Your installation must meet the technical standards for grid connection. You also need a meter that measures export accurately.
What are the best SEG rates?
Rates vary widely across the market. Standard tariffs generally sit between 1p and 15p per kilowatt-hour, with a market average around 13p per kWh. Some suppliers offer installer-exclusive deals or time-of-use tariffs that pay more at peak times and less overnight.
These can be attractive if you have a battery and can choose when to export. However, they also need a bit more attention to get the best value. Because government does not fix the rates, they can change when a supplier updates its tariffs.
It is worth reviewing your export deal once a year, as you would check your import tariff. However, a quick comparison can often reveal a few extra pounds per month. That money adds up over the 25-year life of your panels.
What do you need to sign up?
To register for a Smart Export Guarantee tariff, you need three main things. The list is below.
- An MCS-certified installation. MCS certification is required for SEG registration and most grant routes, so always check your installer holds current MCS accreditation before you commit.
- A completed commissioning certificate and MCS certificate for the system.
- A compatible export meter. In practice this means a modern smart meter configured to record half-hourly export data. If you already have a smart meter for import, your supplier can usually enable the export register remotely.
Once you have those in place, you apply to your chosen export supplier. They ask for your MCS certificate and a recent meter reading. They also ask for your MPAN, the unique supply number for your export connection. The process is largely online and takes a few weeks to go live.
Do you need a smart meter for SEG?
Yes, a smart meter that can measure export is essential. Older analogue meters only record total consumption, so they cannot do the job. They cannot tell the difference between electricity you import and electricity you export.
A modern smart meter solves this by giving half-hourly export readings automatically. If you do not yet have one, your export supplier will arrange installation. It costs you nothing, as part of the national rollout. Check that the meter they fit supports export. Most modern units do, but it is a quick question that saves hassle later.
How much can you earn from SEG?
The amount you earn depends on three factors. These are the size of your system and how much of your generation you use at home. The third is the export rate you secure. A typical 4kWp system on a three-bedroom home might generate around 3,400–4,000 kWh per year in the UK.
Suppose you are at home during the day and run appliances when the sun shines. Then you might export only 30–40% of that. At an average rate of 13p per kWh, that could mean a modest but meaningful annual export income. A survey can estimate the exact figure for your roof. If you are out all day and export a larger share, the figure rises.
Conversely, a battery lets you store daytime surplus for evening use. This reduces export but increases self-consumption. That is often a better trade-off, because every unit you use yourself saves you buying it at the full import price. Both approaches can be worthwhile. The right balance depends on your daily routine and the tariff you choose.
How SEG interacts with battery storage
Adding a battery changes the export picture. With storage, you capture midday surplus and use it after dark, so less electricity leaves your roof. That means lower SEG payments, but higher savings on your import bill.
The import price is usually higher than the export rate. Because of that, using your own power first almost always makes more financial sense than exporting it.
Some time-of-use export tariffs reward you for exporting at peak times, such as early evening. Wholesale prices are high then. With a battery and a smart tariff, you can programme the system to send power to the grid in those windows. You earn a premium rate while keeping enough stored energy for your own evening needs.
This kind of optimisation is becoming more common as smart tariffs evolve. It is worth discussing with your installer if you are considering storage, because tariffs differ.
The bigger financial picture
Export income is only one part of the solar payback story. The main saving comes from reducing what you buy from the grid. A 4kWp system costs around £6,000–£8,000 fully installed, or £10,000–£14,000 with a battery.
Most UK homes see the panels pay for themselves in roughly 10–15 years. That depends on daytime usage and the SEG rate you secure. Panels typically carry a 25-year guarantee and keep producing well beyond that, losing under 1% output a year. So the majority of their working life brings pure savings and export income.
There is also 0% VAT on domestic solar panel and battery installations until 31 March 2027. This saves roughly £1,000–£3,000 on a typical installed price. The ECO4 scheme can fund 100% of a solar installation, typically worth £5,000–£8,000. It is for households on certain means-tested benefits with a lower EPC rating (D to G).
ECO4 runs via energy suppliers or Local Authority Flexibility routes. It is scheduled to run to the end of 2026. MCS certification is required for SEG registration and most grant routes. It is therefore a detail worth confirming early.
Getting started with confidence
The Smart Export Guarantee is a straightforward way to turn your roof into a modest revenue stream. It also helps the grid run on cleaner power. The paperwork is light once your system is MCS-certified and you have a smart export meter. The ongoing admin is little more than checking your tariff once a year.
Would you like a clearer picture of what SEG income could look like for your home? We can arrange a free, no-obligation survey. It factors in your roof orientation, typical daytime usage and the best export rates available right now. Maya Solar works nationwide across England, Scotland and Wales.
We refer homeowners to MCS-certified installers, who will provide detailed quotes including a realistic SEG earnings estimate. Fill in the quick form on our site, and we will take it from there.