The short answer
The Smart Export Guarantee (SEG) pays you for surplus solar electricity you export to the grid, at a per-kWh rate set by your chosen supplier. Most larger suppliers are required to offer an SEG tariff, and rates have ranged widely — from a few pence per kWh on basic tariffs up to higher rates on the most competitive deals. A typical home that exports a meaningful share of its generation might earn somewhere in the region of £100 to £300+ a year, though this depends heavily on how much you export and the rate you secure. SEG income is usually smaller than the savings from using your own power, because each unit you self-consume avoids the full retail price, while exported units earn the lower SEG rate. You need a smart or export meter and an eligible installation to claim.
SEG turns your surplus solar into income, but it is the secondary benefit. The bigger value comes from using your own generation; SEG monetises what is left over.
Smart Export Guarantee
- What it pays forSolar you export to the grid
- Rate set byYour chosen SEG supplier
- Typical annual earnings~£100–£300+ (varies widely)
- RequirementSmart/export meter + eligible install
- Bigger benefitUsing your own power (avoids retail price)
How the Smart Export Guarantee works
The Smart Export Guarantee is a government-backed scheme administered through licensed energy suppliers and overseen by Ofgem. It replaced the older Feed-in Tariff for new installations. The essentials:
- Suppliers set the rate: larger licensed electricity suppliers are obliged to offer at least one SEG tariff and set their own per-kWh export rate. You can choose any SEG supplier — it does not have to be the one that supplies your electricity.
- You are paid per exported kWh: a smart or export meter measures how much surplus power you send to the grid, and the supplier pays you for it, typically as a credit or payment.
- Rates vary a lot: SEG rates have ranged from low single-pence figures on basic tariffs to substantially higher rates on the most competitive deals, so shopping around matters.
- It is for export, not generation: SEG pays only for what you export, not for everything you generate. Power you use yourself is not exported, so it does not earn SEG — but it saves you more, by avoiding the retail price.
What households typically earn
Your SEG income depends on two things: how many units you export, and the rate per unit. The table shows how those combine, using illustrative round figures — your own earnings depend on your generation, self-consumption and tariff.
| Exported per year | At a low SEG rate | At a higher SEG rate |
|---|---|---|
| ~1,500 kWh | Modest (single-pence rate) | Noticeably more |
| ~2,500 kWh | Moderate | Higher still |
| More self-use, less export | Lower SEG income | Lower SEG income |
| Less self-use, more export | Higher SEG income | Higher SEG income |
Illustrative pattern, not specific earnings figures. Sources: Ofgem (Smart Export Guarantee). Actual income depends on your exported kWh and the SEG rate you secure; rates change over time and between suppliers.
How to get the best SEG rate and stay eligible
A few practical points help you maximise SEG income and remain eligible:
- Compare tariffs: SEG rates differ significantly between suppliers and some require you to take a bundled import tariff with them. Compare both the headline export rate and any conditions.
- Fixed vs variable rates: some SEG tariffs pay a fixed rate; others vary with wholesale prices, which can pay more at peak times but is less predictable.
- Meet the eligibility requirements: to claim SEG you generally need an MCS-certified installation (or equivalent) and a meter capable of recording your export, usually a smart meter. Your installer can confirm the certification side.
- Balance export against self-use: exporting more raises SEG income, but using power yourself usually saves more per unit. The aim is to use what you sensibly can and export the genuine surplus for the best available rate.
Because SEG rates and supplier offers change over time, it is worth reviewing your tariff periodically rather than leaving it on whatever was set up at installation.
Frequently asked questions
Do I have to use my electricity supplier for SEG?
No. You can choose any licensed supplier that offers a Smart Export Guarantee tariff — it does not have to be the company that supplies your electricity, though some SEG tariffs are only open to their own import customers. Because rates vary widely, it is worth comparing SEG tariffs separately to find the best export rate.
Is SEG income worth more than the savings on my bills?
Usually not. Each unit of solar you use yourself avoids the full retail electricity price, which is typically higher than the SEG rate paid for exported power. So self-consumption normally delivers more value per unit than export. SEG monetises the surplus you cannot use, which is still worthwhile but generally the smaller of the two benefits.
What do I need to claim the Smart Export Guarantee?
You generally need an eligible installation — usually MCS-certified or equivalent — and a meter that can record how much you export, typically a smart meter. You then sign up to an SEG tariff with a supplier that offers one. Your installer can confirm the certification, and the supplier handles registering you for payments.
Sources & further reading
- Ofgem — Smart Export Guarantee
- Energy Saving Trust — Smart Export Guarantee
- MCS — certified installations
Figures on this page are typical UK ranges drawn from published sources and depend on your specific home. They are guidance, not a quotation or guaranteed saving.