If you have solar panels on your roof, there will be times when you generate more electricity than your home can use. Rather than letting that clean energy go to waste, the Smart Export Guarantee lets you sell electricity back to the grid and receive 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 walks through what the scheme is, how it works in practice, and what it could mean for your household finances.
What is the Smart Export Guarantee?
The Smart Export Guarantee (often abbreviated to SEG) is a government-backed obligation that requires larger licensed electricity suppliers to offer a tariff paying households for the renewable electricity they export. In plain English, it means that if your solar panels produce more power than you need at any given moment, you can earn money on the excess instead of simply giving it away. The scheme replaced the older Feed-in Tariff and applies to solar PV, wind, hydro, micro-CHP and anaerobic digestion up to a capacity of 5 megawatts — more than enough for any domestic installation.
Only suppliers with 150,000 or more domestic customers are legally required to offer at least one SEG tariff. Smaller suppliers may choose to offer one voluntarily, but you will always find an option among the major names. The rate each supplier sets is up to them, which is why it pays to shop around rather than accepting the first offer you see.
How does SEG work day to day?
When your panels are generating, your home uses that electricity first — powering your kettle, fridge, lights, or charging an electric vehicle. Any surplus flows out through your meter onto the local network. A compatible export meter (usually a modern smart meter configured for export) records exactly how many kilowatt-hours leave your property. Your supplier then pays you for those exported units at the agreed SEG tariff rate.
Payments are typically made quarterly or half-yearly, 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 keep buying electricity from one company and sell your surplus to another if their rate is better. The only requirement is that your installation meets the technical standards for grid connection and that you have a meter capable of measuring export accurately.
What are the best SEG rates?
Rates vary widely across the market. Standard tariffs generally sit somewhere 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, but they also require a bit more attention to get the best value.
Because the rates are not fixed by government, they can change when a supplier updates their tariff portfolio. It is worth reviewing your export deal once a year, just as you would check your import tariff. A quick comparison can often reveal a few extra pounds per month — money that 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 will need three main things:
- 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 simply apply to your chosen export supplier. They will ask for your MCS certificate, your MPAN (the unique supply number for your export connection), and a recent meter reading. 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 capable of measuring export is essential. Older analogue meters only record total consumption; they cannot distinguish between electricity you import and electricity you export. A modern smart meter solves this by providing half-hourly export readings automatically. If you do not yet have one, your export supplier will arrange installation at no cost to you as part of the national rollout. It is worth confirming with them that the meter they fit supports export functionality — 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: the size of your system, how much of your generation you use at home, and 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. If you are at home during the day and run appliances when the sun shines, you might only export 30–40% of that. At an average rate of 13p per kWh, that could mean a modest but meaningful annual export income — an exact figure a survey can estimate for your roof.
If you are out all day and export a larger share, the figure rises. Conversely, adding a battery lets you store daytime surplus for evening use, which reduces export but increases self-consumption — often a better financial 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. Because the import price is usually higher than the export rate, 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 (early evening) when wholesale prices are high. If you have a battery and a smart tariff, you can programme the system to discharge to the grid during those peak windows, earning a premium rate while still keeping enough stored energy for your own evening needs. This kind of optimisation is becoming more common as smart tariffs evolve, and it is worth discussing with your installer if you are considering storage.
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. With a 4kWp system costing 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, depending on daytime usage and the SEG rate you secure. Panels are typically guaranteed for 25 years and keep producing well beyond that, losing under 1% output a year, so the majority of their working life is pure savings and export income.
There is also 0% VAT on domestic solar panel and battery installations until 31 March 2027, saving roughly £1,000–£3,000 on a typical installed price. For households on certain means-tested benefits with a lower EPC rating (D to G), the ECO4 scheme can fund 100% of a solar installation (typically worth £5,000–£8,000) via energy suppliers or Local Authority Flexibility routes, scheduled to run to the end of 2026. MCS certification is required for SEG registration and most grant routes, so it is 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 while helping the grid run on cleaner power. The paperwork is light once your system is MCS-certified and you have a smart export meter, and the ongoing admin is little more than checking your tariff once a year.
If you would like a clearer picture of what SEG income could look like for your specific home — factoring in your roof orientation, typical daytime usage, and the best export rates available right now — we can arrange a free, no-obligation survey. Maya Solar works nationwide across England, Scotland and Wales, and we refer homeowners to MCS-certified installers who will provide detailed quotes including a realistic SEG earnings estimate. Simply fill in the quick contact form on our site or email [email protected] and we will take it from there.