What Is the Smart Export Guarantee (SEG Scheme)?
What Is the Smart Export Guarantee?
The Smart Export Guarantee (SEG scheme) is a UK government scheme that pays households and businesses for excess renewable electricity exported to the national grid.
If you have solar panels, wind turbines, micro combined heat (micro CHP), or anaerobic digestion, you can earn money for surplus electricity through a Smart Export Guarantee tariff.
The SEG scheme replaced the Feed-in Tariff (FiT) in 2019. It was introduced to continue supporting renewable energy while creating a more flexible, market-driven system.
Energy suppliers such as Octopus Energy, E.ON and British Gas act as a mandated SEG licensee and offer SEG export tariffs to eligible customers.
Who Is Eligible for the SEG Scheme?
To qualify for the Smart Export Guarantee, you must meet certain eligibility criteria.
You need:
- A renewable energy system such as solar PV panels, wind turbines or micro CHP
- A system with a maximum capacity of 5MW
- Certification through the Microgeneration Certification Scheme (MCS)
- A smart meter installed that can record half hour export meter readings
- Approval from your Distribution Network Operator (DNO)
- An export MPAN
Your chosen energy supplier will use your export meter readings to calculate SEG payments.
The scheme is open to both new and existing renewable system owners.
How Does the SEG Tariff Work?
The SEG tariff pays you for exported energy only.
You receive a set export price for every kilowatt-hour (kWh) of renewable electricity sent to the grid.
Export rates vary depending on the SEG provider. Typical tariff rates range from around 3p to 15p per kWh.
Your smart meter records half hour export readings. These readings are sent to your energy supplier, who then makes export payments directly to your SEG account.
The more excess renewable energy you export, the more you can earn.
How Is the SEG Different from the Feed-in Tariff?
The Feed-in Tariff paid for:
- Generating electricity
- Exporting electricity
It offered fixed payments for up to 20 years.
The Smart Export Guarantee only pays for exported electricity.
SEG payments depend on the export tariff set by your chosen energy supplier. Rates can change, and suppliers compete to offer attractive SEG plans.
The SEG scheme focuses on exported energy and encourages better use of surplus electricity.
What Is an Export MPAN and Why Do You Need One?
An export MPAN is a unique number linked to your electricity meter. It identifies your property as a renewable electricity exporter.
You need an export MPAN to:
- Join a SEG export tariff
- Receive SEG payments
- Register on the export register
Your energy supplier will help arrange this during the application process.
How Do You Apply for the Smart Export Guarantee?
The application process usually involves:
- Submitting proof of MCS certification
- Providing your meter serial number
- Confirming your renewable system details
- Sharing DNO approval
- Setting up a SEG account
Once approved, you will begin receiving export payments based on your export meter readings.
The process is usually completed online through your SEG provider.
How Much Can You Earn from the SEG Scheme?
Your earnings depend on:
- How much electricity your solar PV panels generate
- How much electricity you use in your home
- How much excess energy you export
- Your SEG tariff rate
Homes that generate more surplus electricity during daylight hours tend to earn more.
SEG payments can help offset energy costs, but export tariffs are usually lower than import tariffs. You still pay your energy supplier for electricity you import from the grid.
For many households, the SEG scheme provides helpful additional income rather than a full replacement for electricity supply costs.
In most cases, SEG income is not taxable income for domestic properties, but businesses may need to declare earnings.
How Do Export Tariffs and Import Tariffs Work Together?
You earn money from your SEG export tariff when you export renewable electricity.
You pay your energy supplier for electricity you import from the grid.
Choosing a competitive import tariff alongside a strong Smart Export Guarantee tariff helps reduce overall energy costs.
Some suppliers offer bundled SEG plans with attractive export prices for solar installation customers.
What Are the Benefits of the Smart Export Guarantee?
The SEG scheme supports:
- Renewable energy adoption
- Reduced carbon emissions
- Lower reliance on fossil fuels
- Better use of excess renewable energy
- Increased energy independence
It encourages households and businesses to invest in renewable technologies such as solar PV and wind power.
By exporting surplus electricity to the national grid, renewable system owners contribute to a cleaner energy supply across the UK.
Does the SEG Replace Fit Payments Completely?
The Feed-in Tariff is closed to new applicants.
If you are already receiving FiT generation payments or FiT export payment support, you remain on that scheme until your contract ends.
New solar installation owners must apply through the Smart Export Guarantee instead.
Final Thoughts on the SEG Scheme
The Smart Export Guarantee is a government scheme that pays for excess renewable electricity exported to the grid.
It provides a financial incentive for generating electricity from renewable energy systems such as solar panels.
While the SEG tariff only pays for exported energy, it supports the UK's transition to cleaner energy and helps reduce carbon emissions.
To maximise earnings:
- Ensure your smart meter is installed
- Compare export tariff rates
- Choose a competitive SEG provider
- Optimise how much electricity you export
The SEG scheme rewards renewable electricity generation and plays a key role in building a more sustainable energy supply in the UK.
