Smart Export Guarantee (SEG) — 2026 Guide
The Smart Export Guarantee (SEG) is a UK government policy that requires licensed energy suppliers to pay homeowners for renewable electricity exported to the National Grid. If you have a solar panel system (or wind turbine, micro-CHP or hydro), you can earn money every time your home generates more electricity than it uses. Unlike the old Feed-in Tariff, SEG rates are set by each energy supplier and vary significantly — shopping around for the best SEG tariff can make a meaningful difference to your payback period.
- Current best rate
- ~24p/kWh
- Minimum rate
- >0p (set by supplier)
- Applies to
- Solar, wind, micro-CHP, hydro
- MCS required?
- Yes
What is the Smart Export Guarantee?
The SEG replaced the Feed-in Tariff (FIT) in January 2020 for new installations. Under the SEG, energy suppliers with more than 150,000 customers must offer at least one SEG tariff. They must pay more than zero for your exports but are free to set their own rates — which is why rates vary so widely between suppliers.
Unlike the generation tariff of the old FIT (which paid for every unit generated, whether used or exported), the SEG only pays for electricity actually exported to the grid. This means homeowners with battery storage earn less from SEG because they store surplus rather than export it — but they save more on their electricity bills.
How much does SEG pay in 2026?
- Octopus Energy: Up to 24p/kWh (Octopus SEG — flexible, tracks wholesale price)
- E.ON Next: ~5.57p/kWh (fixed)
- British Gas: ~4p/kWh (fixed)
- EDF Energy: ~3.98p/kWh (fixed)
- Scottish Power: ~3.52p/kWh (fixed)
Who is eligible for the SEG?
To claim SEG payments, you need an eligible MCS-certified installation with a capacity of 5MW or less. For most homeowners with solar panels, this means:
- Your solar panels must be MCS-certified products
- Your installer must be MCS-certified
- You must have a smart meter or meter that can record export data
- You must apply to your energy supplier for a SEG tariff
Common questions about Smart Export Guarantee
Do I need a smart meter to get SEG payments?
Not necessarily, but most suppliers prefer one. Without a smart meter, some suppliers will use a deemed export rate (typically 50% of your generation, based on your MCS certificate). With a smart meter, you're paid for actual exports, which is usually more accurate and often more beneficial.
Can I still apply for the old Feed-in Tariff?
No. The Feed-in Tariff closed to new applications on 31 March 2019. If you had an installation before that date, you continue to receive FIT payments under your existing agreement. New installations from 2019 onwards use the SEG.
What happens to my SEG payments if I add battery storage?
Adding battery storage typically reduces your SEG earnings because you store surplus energy rather than exporting it. However, you save more on your electricity bills by using stored energy in the evenings instead of buying from the grid. The net financial effect is usually positive — the bill savings from a battery often exceed the lost SEG income.
Do I need to switch energy supplier to get the best SEG rate?
You can receive SEG payments from any eligible supplier — it doesn't have to be your main electricity supplier. This means you can take advantage of the best SEG rate (often Octopus) while staying with your current supplier for your incoming electricity. Some homeowners split their accounts specifically for this reason.
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