If you have solar panels — or you are about to — the Smart Export Guarantee is how you get paid for the electricity you generate but do not use. It is not a fortune, but on a decent tariff it adds a few hundred pounds a year to your return, and it is the single easiest bit of solar admin to get wrong.
This guide covers exactly what SEG pays in 2026, which tariffs pay the most, whether you qualify, how to apply step by step, and the one decision that matters more than the export rate itself — whether you are better off storing that energy in a battery and using it yourself.
Getting solar installed in Milton Keynes?
Every system we fit is MCS certified — the paperwork you need to claim SEG. We will also make sure your export meter is set up correctly so you actually get paid from day one.
Solar InstallationWhat is the Smart Export Guarantee?
The Smart Export Guarantee is a government-backed scheme that launched on 1 January 2020. It requires larger electricity suppliers to pay households for the surplus renewable electricity they export to the grid — the solar your panels produce during the day that you do not use in the house at that moment.
It replaced the export part of the old Feed-in Tariff (FiT), which closed to new applicants in March 2019. The key difference: under the old FiT the rate was fixed and generous; under SEG, suppliers set their own rates and compete for your export. That is good and bad — you have to shop around, but the best rates are now considerably higher than the FiT export rate ever was.
Any licensed supplier with 150,000 or more domestic customers is legally required to offer at least one SEG export tariff. Smaller suppliers can offer one voluntarily, and several do. Ofgem regulates the scheme, but it does not set the price — the only hard rule is that the rate must be above zero at all times.
How much does SEG pay in 2026?
Export rates fall into two camps: flat rates that pay the same per unit around the clock, and time-of-use rates that pay more when the grid is under strain (typically 4–7pm).
For context, you buy electricity back at roughly 24.67p per kWh. That single fact drives the most important decision in this whole guide: a unit you use yourself is worth far more than a unit you export at a flat rate. Hold that thought — we come back to it under SEG vs a battery.
The best SEG tariffs right now
Rates move around, so treat this as a 2026 snapshot rather than gospel — always check the supplier's current rate before you switch. But the broad picture has been stable for a while:
| Tariff | Type | Approx. rate |
|---|---|---|
| Octopus Outgoing Fixed | Flat | ~15p/kWh |
| Octopus Flux | Time-of-use | up to ~30p peak |
| Octopus Agile Outgoing | Tracks wholesale (half-hourly) | Variable, spikes highest |
| E.ON Next Export | Flat | ~16.5p/kWh (E.ON customers) |
| British Gas Export & Earn Flex | Flat | ~6.4p/kWh |
| Lowest mandatory SEG tariffs | Flat | ~3–5p/kWh |
Watch the small print: the highest export rates — Flux and Intelligent Flux especially — usually require you to also buy your electricity from that supplier. Compare the combined import and export deal, not the headline export number on its own. A 30p export rate is no bargain if the import tariff attached to it is expensive.
If you want the full breakdown of which import/export combination works best for a solar home, we cover it in detail in our guide to the best energy tariff for solar panels.
Are you eligible for SEG?
To claim SEG payments, you need to tick all of these:
- An eligible technology. Solar PV is by far the most common, but wind, hydro, anaerobic digestion and micro-CHP (up to 50kW) also qualify.
- System size of 5MW or less (50kW for micro-CHP). Every domestic solar system is comfortably inside this.
- An MCS certificate. Your installation and installer must be certified under the Microgeneration Certification Scheme (or an equivalent). This is the document suppliers ask for first — no MCS certificate, no SEG.
- An export-capable smart meter. You need a meter that can send your supplier half-hourly export readings. A second-generation (SMETS2) smart meter does this; some enrolled SMETS1 meters do too.
This is exactly why we do not cut corners on certification. Every solar installation we carry out is MCS certified, so the paperwork you need for SEG is in your hands the day we finish.
How to apply for SEG, step by step
The process is more straightforward than most people expect. Once your system is installed and certified:
- Confirm your MCS certificate. Your installer issues this. Keep the MCS certificate number to hand — you will need it on the application.
- Check your smart meter. Make sure you have an export-capable smart meter. If you do not, ask your electricity supplier to fit a SMETS2 meter — this is normally free.
- Choose an SEG supplier and tariff. You do not have to use your current electricity supplier. Compare flat and time-of-use rates, and factor in whether the best rate requires you to switch your import supply too.
- Submit your application. You will typically need: your MCS certificate, proof you own the system, your meter's MPAN number, a meter reading or photo, and your bank details.
- Get paid. Once approved, the supplier meters your export and pays you — usually quarterly, straight to your bank account. For a domestic system, SEG income is normally tax-free.
Not sure how much you would export?
Our free calculator estimates your generation, self-use and likely export based on your roof and usage — not a generic figure.
Use Our Free CalculatorSEG vs a battery: which earns more?
Here is the part most SEG guides skip. Exporting a unit of solar at a flat 15p is fine — but that same unit, stored and used in your home in the evening, saves you 24.67p. Self-consumption is worth more than export, unit for unit.
The maths that matters
Export 1 kWh on a flat SEG tariff: earn ~15p. Store that same 1 kWh in a battery and use it after dark: avoid buying it back at ~24.67p. That is a ~10p per kWh swing in favour of storing it — before you factor in a time-of-use tariff.
Add a time-of-use tariff like Octopus Flux and the picture gets more interesting still. With a battery, you can charge on cheap overnight import or store your own daytime solar, then export at the 30p peak window rather than the daytime low. The battery lets you sell high and buy low — something a solar-only setup cannot do.
None of this means SEG is pointless. If you do not have — or do not want — a battery, exporting at 15p is free money for electricity you would otherwise give away. But if you are weighing up a battery, the SEG rate is a big part of the sum. We break the full comparison down in our guide to solar feeding back to the grid.
How much can you actually earn?
Take a typical 5kWp system in Milton Keynes generating around 4,500–5,000 kWh a year. How much of that you export depends heavily on when you use electricity, but a household that is out during the day might export 50–65% of what it generates.
| Scenario | Exported / yr | SEG rate | Annual earnings |
|---|---|---|---|
| Low export, low rate | 1,500 kWh | 5p | ~£75 |
| Average export, good flat rate | 2,500 kWh | 15p | ~£375 |
| Battery + Flux, peak export | 2,000 kWh | up to 30p peak | £300–£500+ |
So realistically, SEG on its own adds somewhere between £75 and £400+ a year to your solar return, depending on your tariff and how much you export. It is the difference between a payback period of, say, nine years and one closer to seven — worth getting right, not worth losing sleep over.
Frequently asked questions
What is the Smart Export Guarantee (SEG)?
The Smart Export Guarantee is a government-backed scheme, launched on 1 January 2020, that requires larger electricity suppliers to pay solar owners for surplus electricity they export to the grid. It replaced the export element of the old Feed-in Tariff. You need an MCS-certified installation and an export-capable smart meter to claim it.
How much does SEG pay per kWh in 2026?
Rates range from around 4p per kWh on the lowest flat tariffs up to about 15p per kWh on the best flat-rate deals such as Octopus Outgoing Fixed. Time-of-use export tariffs like Octopus Flux pay up to around 30p per kWh during peak evening hours. The only legal requirement is that the rate is above zero at all times.
Who is eligible for the Smart Export Guarantee?
You qualify if your solar PV system is 5MW or less, was installed by an MCS-certified installer (or equivalent), and you have a smart meter capable of providing half-hourly export readings. Solar PV, wind, hydro, anaerobic digestion and micro-CHP up to 50kW are all eligible technologies.
Do I need a smart meter to get SEG payments?
Yes. SEG payments are based on metered export, so you need a smart meter that records how much electricity you send to the grid on a half-hourly basis. If you do not have one, your supplier can usually fit a second-generation (SMETS2) smart meter free of charge.
Can I use a different supplier for export and import?
Yes. You do not have to take your SEG export tariff from the company that supplies your electricity. However, some of the best export rates — including Octopus Flux — are only available if you also buy your electricity from that supplier, so compare the combined deal rather than the export rate alone.
Is a battery worth it if I already get SEG payments?
Often yes. Every unit you store and use yourself avoids buying electricity at around 24.67p per kWh, whereas exporting it earns only 4–15p on a flat tariff. A battery lets you keep more of your own solar and, on a time-of-use tariff like Flux, export at the 30p peak instead of the daytime low. For most homes a battery earns more than exporting everything.
Get your solar set up to earn from day one
SEG is easy money once your system is certified and your export meter is reading correctly — and easy to fumble if the paperwork is not right. Every system we install in Milton Keynes and across Buckinghamshire is MCS certified, so you can claim from the moment we switch on.
Use our solar calculator for a quick estimate of what you would generate and export, or call us on 07516 762540 and we will talk you through solar, battery and the export tariff that actually suits how you use energy. No sales script — just straight numbers.