What is the Smart Export Guarantee (SEG)?
The Smart Export Guarantee (SEG) is a UK government scheme requiring licensed electricity suppliers to pay small-scale generators for surplus renewable electricity exported to the grid. It replaced the Feed-in Tariff (FIT) in January 2020.
Who is Eligible for SEG?
You qualify for SEG if:
- You have a renewable energy system (solar PV, wind, hydro, or anaerobic digestion)
- Your system capacity is ≤5MW (virtually all domestic and small commercial solar systems qualify)
- Your installation is MCS-certified (or equivalent for >50kW systems)
- You have a smart meter (or half-hourly meter for >5kW systems)
How SEG Works
When your solar panels generate more electricity than you're using, the surplus is automatically exported to the grid. Your smart meter records export volumes, and your SEG supplier pays you based on their tariff rate.
Example:
Your 4kW solar system generates 4,000 kWh annually. You use 2,000 kWh in your home (self-consumption) and export 2,000 kWh to the grid. At a 15p/kWh SEG rate, you earn £300/year from exports.
Best SEG Tariffs in 2025
SEG rates vary widely between suppliers. Here are the top tariffs as of January 2026:
| Supplier | Tariff Name | Rate (p/kWh) | Notes |
|---|---|---|---|
| Octopus Energy | Outgoing Octopus | 15p | Fixed rate, no minimum term |
| Octopus Energy | Agile Outgoing | Variable (avg 12-20p) | Half-hourly rates, higher during peaks |
| E.ON | Next Export Exclusive | 12p | Requires E.ON import tariff |
| British Gas | SEG Export | 6p | Available to all customers |
| EDF | Export Flex | 5.5p | Standard SEG offering |
| Shell Energy | SEG Fixed | 8p | 12-month fixed rate |
Fixed vs. Variable SEG Tariffs
Fixed SEG Tariffs
Pros:
- Predictable income (know exactly what you'll earn)
- Simple to understand
- No need to monitor hourly rates
Cons:
- Miss out on peak pricing opportunities
- Rate may lag behind market wholesale prices
Variable SEG Tariffs (e.g., Octopus Agile Outgoing)
Pros:
- Higher earnings during peak demand (4-7pm weekdays can reach 25-40p/kWh)
- Follows wholesale electricity prices (profit from market volatility)
- Battery owners can arbitrage (charge cheap, discharge at peak rates)
Cons:
- Rates can drop to 0-2p/kWh during low demand (sunny weekends)
- Requires active management and battery storage to maximize earnings
- Unpredictable monthly income
How to Maximize SEG Earnings
1. Choose the Right Tariff
- No battery: Fixed tariff (Octopus Outgoing 15p) is simple and competitive
- With battery: Variable tariff (Octopus Agile Outgoing) allows you to discharge during high-price periods
2. Add Battery Storage
Batteries reduce exports but increase overall savings:
- Store surplus solar instead of exporting at low rates (4-6p/kWh)
- Use stored energy during expensive peak hours (24-30p/kWh import rate)
- With Agile tariffs, discharge batteries during peak export prices (20-40p/kWh)
3. Time Your Energy Use
- Run dishwashers, washing machines, and EV chargers during peak solar generation (10am-3pm)
- Reduce daytime exports by maximizing self-consumption
4. Switch Import and Export Suppliers
You can have different suppliers for import and export:
- Import from a cheap overnight tariff (Octopus Intelligent Go at 7.5p/kWh)
- Export to a high SEG tariff (Octopus Outgoing at 15p/kWh)
SEG vs. Feed-in Tariff (FIT)
If your system was installed before March 2019, you may be on the now-closed Feed-in Tariff (FIT), which paid 3-50p/kWh depending on installation year. FIT contracts run for 20 years and are significantly more generous than SEG.
Important: Do NOT switch from FIT to SEG. FIT is a far better deal. If you're on FIT, stay on FIT.
Do You Need a Smart Meter for SEG?
Yes, most suppliers require a smart meter to measure exports accurately. Without a smart meter, suppliers may offer a "deemed export" rate (assuming you export 50% of generation), which is typically less favorable.
How to Sign Up for SEG
- Install solar PV: Ensure your system is MCS-certified
- Get a smart meter: Request installation from your energy supplier (free)
- Choose SEG supplier: Compare rates at https://www.ofgem.gov.uk/seg
- Apply: Provide MCS certificate, meter reading, and export MPAN
- Get paid: Payments typically made quarterly or annually
Common SEG Questions
Q: Can I get SEG if I'm not with that supplier for my import?
A: Yes! You can have different suppliers for import and export. Choose the best rate for each.
Q: How often am I paid?
A: Most suppliers pay quarterly or annually. Octopus pays quarterly.
Q: What if I move house?
A: SEG contracts typically transfer to the new homeowner (like FIT). Check your supplier's terms.
Q: Is SEG taxable?
A: For most domestic installations, SEG income is tax-free under HMRC's £1,000 trading allowance. Commercial systems may be taxable.
Final Thoughts
While SEG rates are lower than the old Feed-in Tariff, they still provide valuable income. A typical 4kW home system exporting 40% of generation at 15p/kWh earns £240/year—enough to cover system insurance and maintenance.
The key is not to over-optimize for export income at the expense of self-consumption. Saving 24p/kWh (import rate) by using your own solar is always better than exporting at 15p/kWh. SEG is the cherry on top, not the main benefit.