If you have solar panels (or another eligible low-carbon technology) installed in the UK, you can earn money for the electricity you export to the grid under the Smart Export Guarantee (SEG). But not every homeowner qualifies automatically. The key eligibility criteria are:
If you meet these criteria, you can start earning for every kilowatt-hour (kWh) you send to the grid. But how do you actually get paid? This guide walks you through the process step by step.
The SEG is a UK government-backed scheme that requires licensed electricity suppliers (called SEG Licensees) to pay small-scale generators for the low-carbon electricity they export to the grid. It was launched on 1 January 2020, replacing the previous Feed-in Tariff scheme for new applicants. The scheme is regulated by Ofgem, the UK energy regulator.
Under the SEG, you are paid for the electricity you export, not for what you generate and use yourself. The rate is set by your chosen supplier, so it can vary. There is no minimum rate set by the government, so it’s important to compare offers.
Before you start, confirm that your installation qualifies. The table below summarises the key eligibility criteria.
| Criterion | Requirement | Notes |
|---|---|---|
| Technology | Solar PV, wind, hydro, anaerobic digestion, or micro-CHP (up to 50 kW) | Must generate low-carbon electricity |
| Capacity | Up to 5 MW (50 kW for micro-CHP) | Most home systems are well below this |
| Certification | MCS or equivalent | Check your installer provided certification |
| Metering | Smart meter or agreed alternative | Your supplier must be able to measure exports |
| Supplier | Must be an SEG licensee | Not all suppliers offer SEG tariffs |
If you are unsure about your eligibility, contact your supplier or check the Ofgem website.
To verify your installation’s certification, look for the MCS certificate or equivalent documentation from your installer. If you cannot find it, contact your installer or check the MCS database. For metering, your smart meter should be export-capable; if you have an older meter, your supplier may need to install a new one or agree on an alternative method, such as deemed export. Note that the SEG applies to installations in Great Britain (England, Scotland, and Wales); Northern Ireland has a separate scheme, so check with your local authority if you live there.
Once you know you’re eligible, you need to find a supplier that offers an SEG tariff. Not all suppliers do, and rates vary. Some suppliers offer a fixed rate per kWh, while others may offer a variable rate. There is no government-set minimum, so it’s worth shopping around.
To compare tariffs, visit the Ofgem website or use independent comparison tools. Energy Saving Trust also provides advice on selling excess electricity. Remember that the best tariff for you depends on your export volume and your supplier’s terms.
When comparing, consider not only the pence per kWh but also the contract length, payment frequency, and any exit fees. Some suppliers offer higher rates but require you to have a smart meter or to bundle your electricity supply with them. Others may offer a flat rate regardless of when you export, while some may have time-of-use rates that pay more during peak demand periods. If you have a battery, check whether the supplier has specific requirements or offers a separate battery tariff.
Once you’ve selected a supplier, you’ll need to apply for their SEG tariff. The application process typically involves:
Some suppliers may require you to have a smart meter installed if you don’t already have one. Check with your supplier about any costs or requirements.
Before applying, gather the necessary documents: your MCS certificate, your Energy Performance Certificate (if applicable), and your supplier account details. If you have a battery, you may need to provide its specifications. Some suppliers may also ask for a recent electricity bill to confirm your supply arrangement. The application can often be completed online or over the phone, and approval may take a few weeks. Once approved, your supplier will set up the export payments, which typically start from the date your application is approved, not from the date your system was installed.
After your application is approved, your supplier will start paying you for the electricity you export. Payments are typically made quarterly or annually, depending on the supplier. You’ll receive a payment based on the number of kWh exported, multiplied by your tariff rate.
To maximise your earnings, consider adjusting your energy usage to export more during peak times if your tariff offers higher rates at certain times (though not all tariffs do). But remember, the primary benefit of solar is reducing your own electricity bills, so don’t over-optimise for exports at the expense of self-consumption.
Monitor your export payments regularly to ensure they match your meter readings. If you have a smart meter, your supplier will automatically receive your export data, but it’s still wise to check your statements. If you notice discrepancies, contact your supplier immediately. Also, keep in mind that your export tariff may be adjusted by your supplier, but they must give you at least 30 days’ notice before any change, as per Ofgem rules.
Additionally, be aware that if you move house, you may need to reapply for SEG at your new property, as the scheme is tied to the installation and the property, not to you personally. Also, if you add a battery or upgrade your system, you must inform your supplier, as this could affect your eligibility or metering arrangements.
No, you can export directly from your solar panels. A battery can help you store excess generation for later use, but it’s not required for SEG.
Yes, as long as your system is metered correctly. Some suppliers may have specific requirements for battery systems.
The SEG applies to Great Britain (England, Scotland, and Wales). Northern Ireland has a separate scheme. Check with your local authority.
If you switch your electricity supplier, you will need to sign a new SEG contract with your new supplier if they offer SEG. Your existing SEG contract will end when you switch. Make sure your new supplier is an SEG licensee and that you compare their export tariff before switching.
Yes, but the eligibility criteria may differ. Check with the scheme operator and your supplier to ensure compliance with SEG rules.
