Solar Glossary

Smart Export Guarantee (SEG)

The Smart Export Guarantee is the UK scheme that requires energy suppliers with 150,000+ customers to pay solar panel owners for electricity they export to the grid.

Smart Export Guarantee (SEG) explained

The Smart Export Guarantee (SEG) replaced the Feed-In Tariff for new solar installations from January 2020. It requires licensed electricity suppliers with 150,000 or more domestic customers to offer at least one SEG tariff to eligible renewable energy generators.

Key features:

  • Payment is made for every kWh exported to the grid (unlike the old FIT which also paid for generated power you used yourself)
  • Rates are set by the supplier — the government only mandates they must be above zero
  • As of 2024–2026, the best rates range from 6p to 15p/kWh for standard export, with some time-of-use export tariffs paying 3–30p/kWh depending on the time of day
  • A smart meter is required to measure actual exports (half-hourly in most cases)

To be eligible for SEG you need:

  • An MCS-certified installation
  • A smart meter (export meter)
  • A system below 5 MW (all domestic systems qualify)

Best-buy SEG rates are frequently updated — comparison sites like The Eco Experts and Which? track the current best rates. Some suppliers (e.g. Octopus Energy) offer innovative time-of-use export tariffs that pay significantly more during peak grid demand periods.

How this affects your solar decision

Choosing the right SEG tariff can add £100–£400/year to your solar income. Use the Solar Savings Calculator to see how different SEG rates affect your annual returns.

Calculate how SEG payments boost your annual solar savingsSolar Savings Calculator

Related terms

Feed-In Tariff (FIT)The Feed-In Tariff was a UK government scheme (closed to new applicants in 2019) that paid solar panel owners for every unit of electricity their system generated, regardless of whether it was used or exported.Export RateThe export rate is the price per kWh you are paid for solar electricity you send back to the grid, which is typically much lower than the retail price you pay to import electricity.Self-ConsumptionSelf-consumption is the proportion of your solar-generated electricity that you use directly in your home, rather than exporting to the grid.Net MeteringNet metering is a billing arrangement (common in the US and some other countries) where solar panel owners are credited for the full retail value of electricity they export to the grid, which offsets their import charges.
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