The SEG is a UK scheme (England, Scotland & Wales only) launched in January 2020, requiring large suppliers to pay households for metered exported electricity. It only pays for export (not generation) and you need an MCS‑certified system and a smart export meter. Tariffs vary widely (flat or variable), typically between 12p/kWh for open-access flat rates and up to 27p/kWh for variable tariffs with battery storage. You can switch your SEG export away from an existing FiT export tariff (keeping your FiT generation payment) once a year, but SEG payments depend on actual export rather than deemed levels. Although SEG earnings are modest (~£160–£200/year on average), pairing SEG with batteries (and EV or time-of-use import tariffs) can boost overall returns significantly.
What is the Smart Export Guarantee (SEG)?
The Smart Export Guarantee (SEG) is a UK government scheme (launched January 2020) that requires major electricity suppliers to pay households for any excess renewable energy (like solar PV) you export to the grid.
It replaced the Feed‑in‑Tariff (FiT), which closed to new applicants in March 2019. SEG pays only for exported electricity, not for generation.
Who’s eligible?
To qualify, you need:
- A domestic renewable system (solar, small‑scale wind, hydro, anaerobic digestion, micro‑CHP ≤ 50 kW)
- Certification via MCS or equivalent (e.g. Flexi‑Orb)
- A smart meter (SMETS2) capable of measuring half‑hourly exports
- A location in England, Scotland, or Wales (SEG is not available in Northern Ireland)
How does SEG work?
- You export excess energy that your household doesn’t consume.
- Your supplier pays you a tariff per kilowatt‑hour (kWh) exported.
- Rates vary widely by supplier and tariff, you choose and register manually.
SEG vs. Legacy Feed‑in‑Tariff (FiT)
- FiT paid for both generation and (estimated) export.
- SEG pays only for actual export you’ve metered, and based on your choice of supplier.
How much can you earn?
- SEG rates are uncapped, some tariffs currently offer up to 27p/kWh, particularly for customers with solar plus battery storage via Octopus products.
- The average SEG rate recently hovered around 13–14p/kWh, with many tariffs between 12p–16p/kWh.
- E.ON and Octopus usually lead, while Scottish Power, Good Energy and EDF also offer strong rates.
- Households with a 4–5 kW system exporting 50–65% of generation could expect £160–£300 per year in export payments.
- National totals: over £30 million paid to solar homes in 2023–24, up sharply from previous years.
Understanding DNO Export Limits
When you install solar panels or a home battery, you can generate and store a lot of energy, but the amount you’re allowed to send back to the grid isn’t unlimited. This is where DNO export limits come in.
What is a DNO Export Limit?
- A Distribution Network Operator (DNO) manages your local electricity network.
- They set a maximum export limit to protect the grid from overload.
- This limit controls how much solar or battery energy you can export at any given time.
Usable System Size vs. Export Limit
Think of it as having two numbers:
- Usable System Size (🏡) – The total power your solar panels and/or batteries can generate or store for your own use.
- DNO Export Limit (⚡) – The maximum power you’re allowed to export to the grid at once.
Example:
- You install a 10 kW solar system ☀️.
- Your DNO sets an export limit of 3.68 kW ⚡.
This means:
- You can use up to 10 kW in your home 🏠.
- You can only export 3.68 kW to the grid 🌍 at a time.
- Any extra energy must be used, stored in a battery, or managed 🔋.
Why Export Limits Matter for SEG
- SEG only pays for exported energy, so a low export limit may cap your earnings.
- Homes with batteries or EVs can benefit by self-consuming or time‑shifting energy, reducing export waste.
- If you want to export more, you can apply to your DNO for a higher export limit, but approval depends on the local network capacity.
Simple Summary:
- Usable system size = What you can generate and use yourself 🏡.
- DNO export limit = What you can send back to the grid ⚡.
Who benefits most?
- Homes with smart meters and high export levels (often those with solar batteries) can maximise earnings. Battery systems also let you optimise export based on time‑of‑use tariffs.
- If you’re still on FiT export capped at ~5 p/kWh, switch to SEG can boost earnings significantly: e.g. switching to SEG could raise export payments from £108 to £276/year for a typical 4.8 kW system.
How to get started
- Confirm your solar installation is MCS or Flexi‑Orb certified.
- Ensure you have a smart export meter fitted.
- Compare SEG tariffs, some are open to all, others restricted to supplier customers or specific requirements.
- Choose a tariff and sign up directly through that supplier.
- Track your export performance to see what you earn, and consider switching if better offers emerge
Top tip: balancing export and import
- Pay attention to the import rate too. Many suppliers pair SEG export tariffs with time‑of‑use import plans such as Electric Driver or Octopus Go, which reward off‑peak battery charging.
- Maximising self‑consumption and using a battery can reduce grid import and boost export timing value.
Summary table
| Topic | Key Takeaway |
|---|---|
| What? | You get paid export for surplus green energy via SEG |
| Eligibility | Renewable system (e.g. PV), MCS-certified, smart meter |
| SEG vs FiT | SEG pays for metered export only; FiT legacy may include generation |
| Earnings potential | Typically £160–£300/year, with top tariffs up to 27p/kWh |
| Best candidates | Homes with large roofs and battery storage |
| Action steps | Check certification, install smart meter, compare tariffs, sign up |
Ready to Make the Most of Your Solar Energy?
The Smart Export Guarantee is a great way to earn money from your unused solar power, but the real savings come from the right mix of system size, batteries, and SEG tariff.
Thinking about solar or home batteries? Our expert team can design the perfect system for your home and help you maximise both energy savings and export earnings.
Contact us today to get started and unlock the full potential of your solar energy.
