Smart Export Guarantee (SEG): How UK Solar Export Payments Actually Work in 2026

The Smart Export Guarantee was introduced on 1 January 2020, replacing the Feed-in Tariff which closed to new applicants in March 2019. SEG rates currently range from just over 3p to more than 30p per kWh, meaning two households with identical systems can see a difference of hundreds of pounds per year, simply based on tariff selection.

Most homeowners installing solar in the UK still assume one thing: if you generate electricity, you’ll get paid for it. That assumption comes from the Feed-in Tariff era, where households were rewarded for everything their system produced. That’s no longer how solar works. Under the Smart Export Guarantee (SEG), you are only paid for electricity you export to the grid — and the rate you receive is not fixed. It is set by suppliers, which means the financial outcome of your system depends less on how much you generate and more on the tariff you choose. SEG rates currently range from just over 3p to more than 30p per kWh. In practical terms, that means two households with identical systems can see a difference of hundreds of pounds per year, simply based on tariff selection. Understanding how SEG works is less about learning a scheme and more about understanding where value is created or lost.

What the Smart Export Guarantee Actually Is (and What It Replaced)

The Smart Export Guarantee was introduced on 1 January 2020, replacing the Feed-in Tariff which closed to new applicants in March 2019. The shift marked a move away from government-funded incentives towards a market-based system where suppliers determine export prices.

Under SEG, any licensed energy supplier with more than 150,000 domestic customers must offer at least one export tariff. However, there is no standard rate — suppliers set their own pricing, which is why the range of tariffs is so wide. The most important distinction is that SEG pays only for exported electricity. It does not reward total generation, which means system performance is tied to usage patterns, tariff selection and, increasingly, system design.

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How SEG Payments Work in Practice

SEG payments are based on actual exported electricity, measured through a smart meter capable of half-hourly readings. This ensures that payments reflect real system behaviour rather than estimated output.

In most UK homes, solar generation peaks during the middle of the day when demand is low. Without storage, a significant portion of that energy is exported automatically. SEG captures this exported electricity and converts it into income based on your chosen tariff. Payments are typically made monthly or quarterly. Importantly, you are not tied to your electricity supplier when choosing an SEG tariff — this flexibility is useful, but it also means tariff selection becomes a deliberate decision rather than a default outcome.

Current SEG Tariffs in 2026 (Full Comparison)

SEG is not a single rate — it is a pricing landscape. As of March 2026, there are 50 tariffs across 11 suppliers, but only 21 are open to all households. The rest come with conditions such as supplier switching, installation requirements, or battery compatibility. This is where the real differences in value come from.

Premium tariffs (highest rates — with conditions)

Standard tariffs (most households should aim here)

Low / default tariffs (where value is lost)

The difference between these tiers is not marginal. Moving from a 3p tariff to a 15p tariff increases export value by five times. Over the lifetime of a system, that gap can exceed £10,000.

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How Much You Can Realistically Earn from SEG

According to Ofgem’s latest data (Year 5): total paid to households was £56.97 million; total exported electricity was 443 GWh; average household income was £210.69; and the average export rate was approximately 13p. For a typical UK home with a 4.6 kWp system:

The key takeaway is that SEG income is not fixed. It is highly sensitive to tariff choice and system setup. The question is not whether to register for SEG, but which tariff you register with. If you’re weighing up whether solar panels are worth it for your home, our dedicated guide covers the full financial picture beyond export income alone.

SEG vs Feed-in Tariff (FiT): Key Differences

The transition from FiT to SEG changed how solar generates financial return.

For existing FiT users, generation payments remain, but export rates are often lower than SEG. Switching the export portion to SEG can improve returns while retaining generation income.

Who Qualifies for SEG (and What You Need in Place)

To qualify for SEG, your solar system must be installed by an MCS-certified provider, ensuring compliance with industry standards and eligibility for export payments. You also need a smart meter capable of recording half-hourly export readings, an export MPAN, and DNO approval under G98 or G99 regulations. These elements ensure your system is properly registered and able to export electricity safely. In most cases, these requirements are handled as part of a professional installation. Once everything is in place, the application process typically takes between two and four weeks.

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Why Battery Storage Changes Your SEG Returns

Battery storage changes both how much energy you export and how valuable that export is. Without a battery, households typically export around 60–65% of their solar generation. With a battery, this drops to around 30–34% as more energy is stored and used within the home. The key benefit is not reduced export — it is improved control. Batteries allow you to access premium tariffs and export energy at higher-value times. They also reduce electricity imports, which often delivers greater financial benefit than export payments alone. This is why batteries are increasingly tied to higher-value SEG outcomes. For a full breakdown of battery options and costs, see our solar battery cost guide and our Sigenergy battery review.

Choosing the Right SEG Tariff for Your Home

Most households do not need the most complex tariff — they need to avoid the worst ones. A stable tariff in the 13p–15p range provides consistent returns and requires minimal effort to maintain. Premium tariffs can offer higher returns but require compatible systems and more involvement.

The most common mistake is accepting a default tariff without comparison. This often results in rates below 6p, which significantly reduces long-term value. Choosing a tariff is not about maximising potential — it is about avoiding unnecessary losses.

Advanced Tariffs: When Do They Make Sense?

Advanced tariffs introduce time-of-use pricing, where electricity value changes throughout the day. These tariffs can increase returns when paired with battery systems, but they require compatible technology and active management. While they can be effective in the right setup, they are not essential for most households and should be treated as an optimisation rather than a starting point.

Conclusion

SEG is not the main source of solar savings, but it is one of the easiest places to gain or lose value. The difference between a good and poor tariff can materially affect long-term returns. For most homeowners, the focus should be on choosing a competitive tariff, ensuring proper system setup and avoiding default options that reduce value over time.

The Smart Export Guarantee isn’t something that ‘comes with solar’ — it’s something that needs to be chosen properly. Export rates vary widely, and the difference between a poor tariff and a strong one is large enough to materially change what your system returns over time. In most cases, that difference doesn’t come from the panels or the installation, but from decisions made afterwards. For most households, a solid fixed tariff in the 13p–15p range will deliver consistent value without requiring ongoing management. From there, decisions around battery storage and premium tariffs become a question of optimisation rather than necessity.

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