Smart Export Guarantee Explained

What the Smart Export Guarantee is

The Smart Export Guarantee is a government-backed arrangement, overseen by Ofgem, that requires larger licensed electricity suppliers to offer a payment for electricity exported to the grid from small-scale low-carbon generation, including solar panels. It replaced the earlier Feed-in Tariff scheme, which closed to new applicants in 2019.

Under SEG, you are paid for the electricity your system exports, which is the surplus not used in your home at the time it is generated. This is separate from the savings you make by using solar electricity directly in your home, which reduces how much you need to buy from the grid.

How SEG rates work, and why they vary

SEG does not set a single fixed national rate. Instead, each participating supplier sets its own tariff, which can be a flat rate per kWh or a rate that varies by time of day. Rates differ between suppliers and change over time, so it is worth checking current offers directly with suppliers rather than relying on a figure you have seen previously.

Some SEG tariffs are only available to a supplier's own customers, while others are open to anyone, regardless of who supplies their household electricity. Comparing more than one SEG tariff before choosing is a reasonable approach, in the same way you might compare electricity supply tariffs.

SEG rates vary by supplier and change over time. Always check current rates directly with suppliers rather than relying on previously seen figures.

What you generally need to qualify

To be eligible for most SEG tariffs, your solar installation generally needs to be certified under the Microgeneration Certification Scheme, commonly known as MCS, or installed by an MCS-certified installer using a recognised equivalent certification route. You will also usually need a meter capable of recording how much electricity your system exports, often a smart meter with export recording enabled, or an export meter specified by your supplier.

Requirements can vary slightly between suppliers, so check the specific eligibility criteria for any SEG tariff you are considering before applying.

How the application process generally works

After your solar installation is complete and commissioned, you will typically receive an MCS certificate confirming the installation meets the required standard. You can then apply to a supplier offering a SEG tariff, providing details such as your MCS certificate number, system details, and meter information.

Your chosen installer should be able to guide you through what documentation you will need, and many installers are familiar with helping customers through this step as part of the overall installation process.

Choosing between SEG tariffs

When comparing SEG tariffs, look beyond the headline rate per kWh. Check whether the rate is fixed or time-of-use, whether there are any conditions attached, such as requiring a smart meter with a specific functionality, and whether you need to also be that supplier's electricity customer. Ofgem's website and individual supplier websites are useful starting points for checking current, accurate information.