What Is the Smart Export Guarantee (SEG)?

The process is straightforward:

1. Your panels generate electricity — during daylight hours, solar panels produce DC electricity 2. Your home uses what it needs — the inverter prioritises powering your home 3. Surplus exports to the grid — any electricity your home doesn't use flows out through your meter to the national grid 4. Your smart meter records exports — a smart meter (required for SEG) tracks exactly how many kWh you export 5. Your supplier pays you — you receive a payment per exported kWh, either as a credit on your bill or a direct payment

Typical UK households with a 4kW solar system export 1,500–2,800 kWh per year (depending on self-consumption rate and whether they have a battery).

Annual SEG income examples: - 2,000 kWh exported at 4.1p/kWh (lowest rate): £82/year - 2,000 kWh exported at 12p/kWh (good fixed rate): £240/year - 2,000 kWh exported at 15p/kWh (best variable rate): £300/year

Source: Ofgem SEG guidance; supplier published tariff rates March 2026.

SEG rates vary significantly between suppliers. All licensed suppliers with 150,000+ customers must offer a SEG tariff, but the rate they pay is their choice.

Fixed SEG tariffs (predictable income): - Octopus Energy (Fixed Export): 4.1p/kWh - British Gas (Export): 5.6p/kWh - EDF (Export): 5.0p/kWh - E.ON Next (Solar Export): 5.5p/kWh

Variable/agile SEG tariffs (higher potential, varies by time of day): - Octopus Flux (Export): 8–24p/kWh depending on time period — highest rates during 16:00–19:00 peak - Octopus Agile Outgoing: varies by half-hour — can reach 15–30p in peak demand periods

The best strategy: For most homeowners without a battery: choose a fixed SEG tariff for predictable income (5–6p/kWh).

For homeowners with a battery: choose Octopus Flux — charge the battery from solar during the day, then export from the battery during 16:00–19:00 when Flux rates are highest (15–24p/kWh). This can double or triple your export income.

Source: Supplier websites and published tariff schedules, March 2026. Rates change — always check current rates before signing up.

Important: You do NOT need to be a customer of the energy supplier offering the SEG tariff. You can buy your electricity from one supplier and sell your exports to another — choose whichever pays the best SEG rate.

Source: Ofgem Smart Export Guarantee participation requirements.

The Feed-in Tariff (FIT) was the predecessor to the SEG. It closed to new applicants in March 2019. Key differences:

Feed-in Tariff (closed): - Paid for all electricity generated (not just exports) - Guaranteed rates set by the government (up to 43p/kWh when it launched in 2010) - Index-linked payments for 20 years - Extremely generous — some early adopters earn £1,000–£2,000/year

Smart Export Guarantee (current): - Only pays for electricity exported to the grid (not what you use at home) - Rates set by suppliers (typically 4–15p/kWh) - Not index-linked — rates can change - Less generous but still provides meaningful income

If you installed solar before March 2019 and are on FIT, keep it — it is significantly more valuable than the SEG. If you install now, the SEG is your export income option.

Source: Ofgem FIT and SEG scheme documentation.