What Is a SEG Tariff?
A SEG tariff is a payment scheme that pays homeowners for renewable electricity they export to the National Grid. SEG stands for Smart Export Guarantee, a government-backed initiative launched in January 2020 to replace the older Feed-in Tariff (FIT) scheme.
Here’s the basic idea. Your solar panels generate electricity throughout the day. You’ll use some of it instantly to power lights, appliances, and your hot water. Anything you don’t use flows back into the grid. A SEG tariff makes sure you’re compensated for that exported energy at a rate agreed with your supplier.
It’s worth knowing how SEG differs from the older schemes. The Feed-in Tariff paid a fixed government-set rate for both generation and export. SEG is different: each energy supplier sets its own export rate, which means there’s genuine competition and real reason to shop around. An electricity export tariff and a SEG tariff are essentially the same thing in the UK today, just under slightly different supplier marketing.
How the Smart Export Guarantee Works
The Smart Export Guarantee works by requiring large energy suppliers (those with more than 150,000 domestic customers) to offer at least one export tariff to eligible homeowners. Your smart meter records the exact amount of electricity you export, and your supplier pays you per kilowatt-hour at the agreed rate.
Payments are typically credited to your account or paid directly into your bank, often quarterly. The system runs on half-hourly meter readings, so suppliers get a precise record rather than estimates.
Export payments can do two useful things at once: offset your normal electricity bills, and support the wider shift to low-carbon energy generation. The more you export, the more you earn, and the cleaner the grid becomes overall.
Technologies That Qualify for SEG
Several renewable technologies qualify for SEG, as long as they’re installed by an MCS-certified installer and connected to the grid through a smart meter. The eligible technologies are:
- Solar PV panels (by far the most common)
- Wind turbines
- Hydroelectric systems
- Anaerobic digestion
- Micro combined heat and power (micro-CHP) up to 50kW
Battery storage systems can also support SEG payments indirectly. While the battery itself doesn’t generate electricity, it stores excess solar power that can be exported later, often at peak rates when export prices are higher. Heat pumps don’t qualify for SEG since they consume electricity rather than generate it.
To be eligible, your installation must sit under 5MW capacity (which is far above any domestic system), and you’ll need that all-important MCS certificate for both the system and the installer.
Best SEG Tariffs and Export Rates in the UK
The best SEG tariffs in the UK currently come from Octopus Energy, with several other suppliers offering competitive rates worth considering. Headline rates range from around 5p/kWh on basic deals up to 30p+ per kWh on time-of-use tariffs for households with compatible battery storage.
Tariff structure matters as much as the headline rate. Some tariffs pay a flat rate for every kWh you export, regardless of time of day. Others vary by time slot, paying premium rates during peak demand periods (typically 4pm to 7pm) and lower rates overnight. The right choice depends on when you actually export, which is shaped by your system size, battery setup, and household usage patterns.
It’s also worth checking whether a tariff is tied to your import contract. The very best headline rates often require you to buy your electricity from the same supplier, which can wipe out the gains if their import unit rate is uncompetitive.
Suppliers Offering the Best SEG Rates
Suppliers offering the best SEG rates in 2026 include the following, though rates change frequently and you should always verify directly before signing up:
- Octopus Energy: Intelligent Octopus Flux offers up to around 30p/kWh during peak hours for customers with a compatible battery; Outgoing Octopus Fixed pays 15p/kWh as a strong open-market rate
- Good Energy: Solar Savings Exclusive at around 25p/kWh for solar and battery installed through their network
- EDF: Export Exclusive tariffs at competitive flat rates, sometimes around 24p/kWh for specific installations
- British Gas: Export & Earn Flex around 15p/kWh for existing customers
- E.ON Next: Competitive fixed rates roughly in the 15p to 18p/kWh range
- ScottishPower: SmartGen tariff available to existing customers
- OVO: SEG Tariff Exclusive at around 20p/kWh
Octopus generally leads the open market because you don’t need to switch your import contract to access their headline export rate. Switching SEG suppliers is straightforward, and you don’t have to use the same company for import and export, which gives you real flexibility.
Average SEG Export Rates Explained
The average SEG export rate sits between 5p and 10p/kWh, but this masks a huge variation across the market. A homeowner on a basic deal at 5p/kWh might earn around £85 per year, while someone on Octopus’s flexible tariff at 15p/kWh could earn over £255. Time-of-use tariffs with battery storage push earnings even higher.
Several factors affect what suppliers offer:
- Wholesale energy market prices
- Grid demand at different times of day
- Competition between suppliers for renewable customers
- Regional differences in network charges
- Government policy and Ofgem regulation
For solar-powered homes, the long-term earning potential is real but not life-changing on its own. The bigger financial win usually comes from self-consumption (using your own solar electricity instead of buying it from the grid), with SEG payments topping up the savings.
How Much Can You Earn From a SEG Tariff?
Most UK homeowners earn between £100 and £400 per year from SEG payments, depending on system size, export volume, and the tariff they’re on. A typical 4kWp solar array without battery storage exports somewhere between 1,500 and 2,000 kWh per year, which at 15p/kWh works out to around £225 to £300 annually.
Three main factors shape your earnings:
- How much electricity your panels generate (driven by system size, orientation, and shading)
- How much of that electricity you use at home before it gets exported
- The export rate offered by your chosen supplier
Adding a battery changes the maths significantly. With a battery, you can store cheap or free electricity and either use it yourself in the evening or export it during peak-price windows. Households on time-of-use export tariffs with batteries often see annual earnings climb well above £500.
Calculating Solar Export Payments
Solar export payments are calculated by multiplying the kilowatt-hours you export by your tariff rate. Your smart meter records exports in 30-minute intervals and sends that data automatically to your supplier.
Here’s a simple example. Say you have a 4kWp solar system that generates 3,800 kWh per year. You use 50% of that at home and export the rest, which is 1,900 kWh. On a flat 15p/kWh tariff, you’d earn:
1,900 kWh × £0.15 = £285 per year
If you switch to a time-of-use tariff and shift some of your export to peak hours, that figure climbs. The trick is matching your usage and export patterns to the right tariff structure. Heavy daytime users (people working from home, or households with electric cars charged overnight) often export less than they think.
Battery Storage and SEG Earnings
Battery storage boosts SEG earnings by giving you control over when you export. Without a battery, you export whenever your panels produce more than you’re using, which is often the middle of the day when wholesale prices are low. With a battery, you can hold that electricity back and release it when rates are highest.
Battery storage systems do qualify for SEG payments, but only in the sense that they support the underlying solar installation. The battery itself doesn’t generate anything, so payments are still based on net exported electricity. A few practical points:
- Many time-of-use tariffs require a battery on an approved list (Tesla Powerwall, GivEnergy, Huawei Luna, SolarEdge, and others)
- Battery owners can monitor exports through their inverter app or supplier portal
- Smart batteries can be remotely managed by some suppliers to export at optimal times
- Battery storage also reduces grid imports, which boosts overall savings beyond the SEG payment alone
A battery isn’t always financially worth it on payback alone, but combined with the right SEG tariff, the numbers work for a growing number of households.
Requirements for SEG Eligibility
To qualify for a SEG tariff, you need three things: an eligible renewable installation, MCS certification, and a smart meter capable of measuring exports. Without all three, suppliers can’t process your application.
Here’s the practical checklist:
- A renewable system installed by an MCS-certified installer (solar PV, wind, hydro, anaerobic digestion, or micro-CHP)
- System capacity under 5MW (well above any home setup)
- A smart meter (SMETS2 or compatible SMETS1) able to record half-hourly export data
- Your MCS certificate, EPC (where required), and proof of ownership
- An application with a SEG-registered supplier of your choice
Once your application is approved, exports are tracked automatically and payments start within the supplier’s normal billing cycle.
Do You Need MCS Certification?
Yes, MCS certification is required for SEG eligibility in nearly all cases. The Microgeneration Certification Scheme confirms that your installation meets recognised quality standards and was fitted by a properly trained installer. Suppliers rely on the MCS certificate to verify that your system is genuine, safe, and compliant.
If you bought a property with existing solar panels, you should already have the MCS paperwork from the previous owner. If it’s missing, contact the original installer or the certification body to request a copy. Without it, most suppliers will refuse the application, although a small number offer routes for non-MCS systems at lower rates.
Utility companies also use MCS data to verify the installation, so the certificate isn’t just a piece of paper. It’s the link between your hardware and the wider energy system.
Smart Meters and Export Tracking
Smart meters are essential for SEG because they’re the only way suppliers can measure exactly how much electricity you export. Older analogue meters or first-generation smart meters that lost their smart functionality won’t do the job.
A SMETS2 smart meter (or a SMETS1 that’s been upgraded to communicate properly) records both import and export in 30-minute slots. Your supplier reads this data remotely, which is why payments are accurate and don’t rely on self-reported readings.
If you don’t have a smart meter yet, your import supplier will install one free of charge. Wait until it’s been working properly for a couple of weeks before applying for SEG, since some installations need a brief commissioning period to start sending export data.
How to Apply for a SEG Tariff
Applying for a SEG tariff takes about 30 minutes online, plus a few weeks for the supplier to process and verify your application. Most suppliers have an online form where you upload supporting documents and select your preferred tariff.
Typical documents you’ll need:
- MCS certificate for the renewable installation
- Smart meter MPAN number (found on your electricity bill)
- Proof of ownership (recent bill or solicitor’s letter for new homeowners)
- Bank details for payments
- Inverter or system specification (some suppliers ask for this)
After submission, expect a wait of two to six weeks for verification, set-up, and your first export reading. Payments usually begin from the date your account goes live, with the first credit landing at the end of the first billing quarter.
Switching SEG Providers
You can absolutely switch SEG providers, and most homeowners should review their tariff at least once a year. Better rates come and go, and loyalty rarely pays in the export market.
Switching is similar to changing electricity supplier. You apply with the new SEG provider, who handles the transfer behind the scenes. Your import contract isn’t affected unless you choose to bundle both. A few things worth checking before switching:
- Exit fees or notice periods on your current SEG contract (most fixed deals have them)
- Whether the new tariff is open-market or tied to your import supplier
- Compatibility with your current smart meter and battery (if any)
- Payment frequency and method
Comparison sites and dedicated SEG comparison tools make it easy to line up rates side by side. Just be careful with headline figures, since restrictive terms can eat into the actual earnings.
Payment Frequency and Tax Considerations
Most SEG suppliers pay quarterly, either by direct bank transfer or as a credit on your electricity account. A handful pay monthly, and some pay annually. Payment frequency matters because cashflow can affect how useful the income feels, especially if you’re using it to offset bills.
On tax: for domestic households exporting from systems on their own home, SEG payments are generally not taxable. HMRC treats them as part of the household’s domestic energy use rather than business income. Things change if you have a large commercial installation or you’re operating multiple systems as a business, in which case you should speak to an accountant.
Transparency and regulation sit with Ofgem, who oversee the SEG scheme. Suppliers must publish their tariffs publicly and apply them consistently.
Choosing the Best SEG Tariff for Your Home
Choosing the best SEG tariff for your home means matching the tariff structure to how you actually generate and use electricity. The right tariff for a battery-equipped household with peak-hour export looks very different from the right tariff for a small standalone solar array.
Key factors to weigh up:
- Export rate (and whether it’s fixed or variable)
- Tariff terms and contract length
- Payment frequency and method
- Whether the rate is tied to your import contract
- Battery and inverter compatibility
- Customer service and tariff history
Long-term value beats short-term hype. A 16p tariff that sticks around for three years is often worth more than a 20p tariff that gets pulled in six months.
Best SEG Tariffs for Solar Panel Owners
For solar panel owners without battery storage, the best SEG tariff is usually a fixed open-market deal that doesn’t require switching your electricity supplier. Octopus Outgoing Fixed at 15p/kWh has been the benchmark for several years and remains a strong default for most UK homes.
For solar homes with battery storage, time-of-use tariffs like Intelligent Octopus Flux can dramatically boost earnings, especially if you’re willing to let the supplier manage when your battery exports. These tariffs essentially turn your home into a small flexible energy asset.
Solar-powered homes that are also energy-efficient (good insulation, modern appliances, low standby consumption) tend to export more, which means SEG income makes up a larger share of the total benefit. Pairing solar with smart usage habits is genuinely an eco-friendly energy strategy that pays off.
Common Mistakes When Comparing SEG Tariffs
The most common mistake is chasing the highest headline rate without reading the small print. A 30p tariff sounds amazing until you realise it only applies for three hours a day, requires a specific battery, and locks you into a more expensive import deal.
Other mistakes to avoid:
- Ignoring the import side of bundled tariffs (the export gain can be wiped out by higher import rates)
- Not checking smart meter compatibility before signing up
- Overlooking payment frequency, especially if you’re relying on the income
- Picking a tariff that doesn’t match your export pattern (peak vs flat exporters need different deals)
- Forgetting to review the tariff after the first year, when better deals often emerge
- Assuming the same supplier must handle both import and export
Look for transparency in how rates are set, flexibility in contract terms, and a supplier you’d actually trust to handle your money for the next few years. SEG is a long game, and the right tariff makes a noticeable difference to the overall return on your solar investment.
Thinking about solar panels or battery storage and want to know what you could earn through a SEG tariff? Get in touch with Stratford Energy Solutions for a friendly chat, a clear quote, and an MCS-certified installation built to maximise your export potential.