The Smart Export Guarantee: How you can get paid for exporting solar energy
The Smart Export Guarantee (SEG) enables households and businesses with solar panels to achieve a faster return on investment by paying them for the energy they export back to the grid.
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What is the SEG, and how does it work?
The SEG is a UK government-backed scheme introduced in 2020 that sees households, farms and businesses paid for the excess energy their solar panels generate and feed back to the grid.
When your solar panels generate more electricity than you use, the unused energy flows back into the national grid. Your energy supplier then pays you for each kilowatt-hour of energy you send back.
A typical home will only likely use 50 per cent of the energy generated. Therefore, being paid for the excess rather than seeing it go to waste makes sense.
This means you could receive SEG payments of up to £600-plus on top of the savings you’ll already be making on your energy bills.
Save up to £800 a year
Installing solar panels can drastically reduce your electricity bills.
How much can you earn through the SEG?
What you’ll earn through the SEG is dependent on several factors, including the size and output of your system, the amount of energy you consume and export, and the tariff you are signed up for.
Tariffs can range between 1.5p and 15p per kilowatt hour (p/kWh).
Some providers offer higher tariffs under certain conditions, such as if you have a battery system or if you ordered your solar setup through them.
These more premium tariffs range from 20 – 30p/kWh, and see you export energy when prices are highest.
This means you could receive annual SEG payments of anywhere from £80 to £600-plus.
We’ve put together a table on how much you could earn through the SEG.
The table is based on a 4 kW solar PV system — the most common size for UK homes — exporting around half of the energy it generates, typically between 1,800 and 2,100 kWh per year.
Smart Export Guarantee Tariff Comparison
| Tariff Type | SEG Rate (p/kWh) | Estimated Annual Payment (£) |
|---|---|---|
| Low-end tariffs | 1.5 – 4p | £25 – £80 |
| Mid-range customer tariffs | 5 – 7p | £90 – £130 |
| High-end fixed-rate tariffs | 12 – 16p | £200 – £270 |
| Premium time-of-use tariffs (with battery) | 20 – 30p | £360 – £630+ |
Who is eligible for SEG payments - and how to apply
You'll need solar panels installed by an MCS-certified installer, a connection to the electricity grid, and a smart meter to track your electricity exports back to the grid.
We can help by connecting you with trusted local installers.
To apply, contact SEG suppliers (Ofgem has a list of official suppliers), provide your MCS certification and meter compatibility proof, and set up your account.
Accounts typically take a few weeks to be setup and payments are usually made quarterly.
The only drawback is that the scheme only applies in England, Wales, and Scotland, so households in Northern Ireland are unfortunately excluded.
Don’t miss out on payments for excess energy you send back to the grid
SEG payments, combined with zero VAT on installations and falling solar costs, mean faster returns on your investment than ever.
Various grants and schemes can also reduce upfront costs for eligible households.
We make your solar journey even easier by connecting you with trusted installers.
Take a couple of minutes to tell us about your home and solar needs, and we’ll connect you with local installers.
Our service is free and non-binding, and consumer organisation Which? recommends getting quotes from three different providers before choosing what’s best for you.
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Do I need to use the same supplier for electricity and SEG?
No, you can use different suppliers for your electricity and SEG payments.
This means you can shop around for the best SEG rates while keeping your preferred energy supplier.
What happens if I move house?
SEG payments are tied to the property, not the homeowner.
If you move, the new homeowner will receive the SEG payments, after they set up a new account.
If you're buying a home with existing solar panels, you'll need to set up a new SEG agreement.
How much do solar panels cost?
Solar panel costs vary depending on system size and your home's requirements. Most residential systems range from £4,000-£8,000.
How quickly will I see a return on investment?
With SEG payments, energy bill savings, and zero VAT on installations, typical payback periods are 6-10 years.
After that, you'll have 15+ years of free electricity plus SEG income, making solar panels a strong long-term investment.
Where can I learn more about the installation process?
If you are still wondering more about the practicalities of having solar panels installed, we’ve written an in-depth guide on what to expect.
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