GB grid nowLow-carbon75%Wind56.0%Solar0.2%Nuclear11.4%Gas11.2%Imports9.6%Carbon intensity69 g/kWh
GlossarySolar

Smart Export Guarantee (SEG)

A Great Britain scheme that requires larger electricity suppliers to pay small-scale generators, such as homes with solar panels, for electricity they export to the grid.

By Eugene SerbinUpdated

The Smart Export Guarantee (SEG) is a scheme in Great Britain under which some electricity suppliers must pay small-scale low-carbon generators for the electricity they send to the grid. For most households this means being paid for spare power from rooftop solar panels. The SEG started on 1 January 2020 and is administered by Ofgem.

How it works

You sign an export tariff with a supplier that offers the SEG, known as an SEG licensee. It does not have to be the company that supplies your electricity. The licensee pays you for each kilowatt-hour you export, measured by a meter that records exports, usually a smart meter.

Suppliers set their own rates, contract lengths and terms. Some pay a fixed rate, others pay rates that change with the time of day or the wholesale price. The only rule on price is that the rate must always be above zero.

Who must offer it and what qualifies

Rule Detail
Mandatory licensees Suppliers with at least 150,000 domestic electricity customers
Smaller suppliers Can offer SEG tariffs voluntarily
Eligible technologies Solar PV, wind, hydro, anaerobic digestion, micro-CHP
Size limit Up to 5 MW (micro-CHP up to 50 kW)
Location Great Britain

For solar PV, wind and micro-CHP up to 50 kW, suppliers usually ask for an MCS certificate or an equivalent as proof that the installation is properly certified.

Why it matters

Export payments are one part of the return on home solar. Because SEG rates are usually lower than the price you pay to import electricity, using more of your own power at home tends to be worth more than exporting it. Comparing SEG tariffs alongside your import tariff helps show the full picture. This is general information, not financial advice.

Read more: Solar panel grants and incentives in the UK.