The Smart Export Guarantee (SEG) is the UK government mechanism that requires licensed energy suppliers with over 150,000 customers to offer tariffs for electricity exported to the grid from small-scale low-carbon generators — including domestic solar panels. It replaced the Feed-in Tariff (FiT) scheme, which closed to new applicants in April 2019. The SEG is not a subsidy in the traditional sense — it is an obligation on suppliers to offer a tariff, but not to offer any specific rate. Understanding how SEG works, what rates are available, and how to register is a practical part of commissioning a solar installation.
SEG Eligibility Requirements
To register for SEG, a solar installation must be: installed by an MCS-accredited installer; use MCS-certified products; have a capacity of 50kW or less (all domestic installations qualify); and have a smart meter or half-hourly metering installed (or be willing to have one installed). The smart meter requirement is what allows the supplier to measure export accurately — older non-smart meters cannot distinguish between generation, self-consumption, and export. An MCS certificate is the primary document required for SEG registration.
"The SEG registration process is straightforward once the MCS certificate is in hand. The homeowner contacts their preferred SEG supplier — this does not need to be their electricity supplier — submits the MCS certificate and smart meter details, and the supplier activates the export tariff. Payments are made quarterly in arrears based on metered export data. The whole process from installation to first payment typically takes 6–12 weeks, including smart meter installation if one is not already present."— Ofgem — Smart Export Guarantee Scheme
Current SEG Rates — How They Compare
SEG rates are set by individual suppliers and vary significantly. At any point, rates from major suppliers range from around 4p/kWh at the lower end to 15p/kWh or more at the higher end, with some suppliers offering time-of-export tariffs that pay more for electricity exported during peak demand periods. The rate from your own electricity supplier is not necessarily the best available — homeowners can register with any qualifying supplier for SEG regardless of who they buy their electricity from. Comparison sites such as which.co.uk/energy and ofgem.gov.uk's SEG register show current rates from all obligated suppliers.
SEG vs Feed-in Tariff — Why the Numbers Are Different
Homeowners who installed solar before April 2019 under the Feed-in Tariff receive both a generation tariff (paid per unit generated, regardless of whether it is self-consumed or exported) and an export tariff. The generation tariff was the financially significant element — it was paid on all generation and was typically 5–18p/kWh depending on installation year. The SEG pays only on metered export, not on generation, which means the SEG payment is a smaller part of the overall solar financial return than the old FiT generation tariff was. The main financial return from solar under SEG comes from self-consumption savings, not export payments.
"The SEG is worth registering for, but it is not the reason to install solar. The financial return from a domestic solar installation comes primarily from self-consumption savings — units you generate and use yourself that you would otherwise pay for at retail price. At current electricity prices, self-consumed solar electricity is worth 24–28p/kWh. SEG export rates are 4–15p/kWh. Maximising self-consumption — through household behaviour, timing of appliances, or battery storage — is worth considerably more than maximising SEG export."— Energy Saving Trust — Maximising Solar Returns
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