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How the Smart Export Guarantee (SEG) Can Help You Earn Money from Solar

Date added: Thu 20 Feb 2025

The Smart Export Guarantee (SEG) is a UK government-backed initiative designed to help homeowners and businesses earn money by exporting excess renewable energy back to the grid. Introduced in January 2020, the SEG replaced the previous Feed-in Tariff (FiT) scheme and offers a fair market rate for the surplus electricity you generate through solar panels or other renewable sources.

How Does the SEG Work?

If you have a solar PV system installed, your panels generate electricity during daylight hours. While some of this energy is used to power your home, any excess can be sent back to the National Grid. Under the SEG scheme, energy suppliers with over 150,000 customers are required to offer export tariffs, which means they will pay you for each unit (kilowatt-hour, kWh) of electricity you export.

How Are You Paid?

Your payments will depend on the tariff provided by your chosen energy supplier. Unlike the FiT, where rates were set by the government, SEG rates are determined by suppliers, creating competition and the opportunity for homeowners to find the best deal. Current SEG tariffs range from 1p to 15p per kWh, so it’s essential to compare different providers.

To be eligible for SEG payments, you will need:

  • A renewable energy system (such as solar PV, wind, or hydro) up to 5MW capacity

  • A smart meter capable of measuring half-hourly export readings

  • Registration with an SEG-licensed electricity supplier.*

Payments are typically made monthly or quarterly, depending on your supplier’s terms.

*Note you must receive a commissioning notification response from your DNO (Distribution network operator) to be able to generate an export MPAN (Meter Point Administration Number).

How to Apply for the SEG

  1. Check Eligibility – Ensure you have a renewable energy system and a smart meter installed.

  2. Compare SEG Tariffs – Different suppliers offer different rates, so shop around for the best deal.

  3. Register with a Supplier – Contact your chosen supplier and provide the necessary documentation (proof of installation, smart meter readings, etc.).

  4. Start Earning! – Once approved, your supplier will pay you for the excess energy you export.

 

The Smart Export Guarantee is an excellent way to make your solar investment even more rewarding. By choosing the right tariff and optimising energy use, you can lower your bills, reduce carbon emissions, and earn money from your renewable energy system. 

If you’d like to learn about how long it will take to pay back your solar installation with SEG, watch our latest YouTube video below:

If you’re considering solar, now is the perfect time to explore how the SEG can benefit you!