- What is the Smart Export Guarantee (SEG)?
- How the SEG works
- SEG vs. the Feed-in Tariff (FiT) – how the system has developed
- The best Smart Export Guarantee rates & major SEG providers in 2025
- How to maximise your earnings from the SEG
- Other essential SEG facts to understand – the importance of smart meters
- Are SEG rates likely to improve?
The Smart Export Guarantee (SEG) is a UK government-backed scheme that rewards small-scale renewable energy producers for feeding excess electricity back into the grid. The scheme acts as an added economic incentive for homeowners and small businesses to adopt environmentally-friendly energy production methods. For owners of solar panels, wind turbines or other renewable energy systems, SEG ensures energy suppliers make regular payments for the electricity exported.
SEG tariff rates provide homeowners and businesses investing in renewable energy an opportunity to maximise returns while contributing to a greener energy future. Unlike the now-closed Feed-in Tariff (FiT), which guaranteed fixed payments to every participating party, Smart Export Guarantee rates vary by supplier. This means the amount you earn depends on which provider you choose. It’s important to note that some energy companies offer significantly better rates than others, making it essential for savvy environmentalists to snoop around for the best deal possible.
This comprehensive guide will provide a thorough breakdown of everything you need to know about the Smart Export Guarantee in 2025. We’ll cover how it works, which suppliers offer the most competitive rates and how to maximise your earnings with whoever you choose to work with. Whether you’re new to solar energy or looking to switch to a better export tariff, understanding SEG can help you make informed decisions and get the most from your renewable energy system.
What is the Smart Export Guarantee (SEG)?
The Smart Export Guarantee (SEG) was introduced in January 2020 as a replacement for the Feed-in Tariff (FiT) scheme. The FiT had provided fixed payments to small-scale renewable energy producers but closed its doors to new applicants in 2019. In response to this closure, the UK Government developed the SEG so that households and businesses with renewable energy systems could still benefit from exporting excess electricity to the grid.
The primary aim of the SEG is to support the adoption of renewable energy technologies and help the UK achieve its broader Net Zero goals. By allowing consumers to sell surplus power, SEG helps:
- Encourage investment in solar panels (PV systems), wind turbines, hydropower, anaerobic digestion and micro-combined heat and power (CHP).
- Reduce/phase out dependency on fossil fuels and promote a cleaner, greener energy system.
- Support grid stability by increasing the availability of distributed renewable energy.
Unlike the FiT, which pays set prices both for electricity generated and exported, SEG applies to electricity that is exported back to the grid and works at different rates. This makes it all the more crucial for users to maximise their energy efficiency and self-consumption.
How the SEG works
Under Smart Export Guarantee laws, all licensed energy suppliers with more than 150,000 customers are legally required to offer an export tariff. These tariffs pay small-scale generators, such as homeowners and small businesses, for each kilowatt-hour (kWh) of surplus electricity they export to the National Grid.
Here’s how the SEG works:
- Your renewable energy system generates electricity recorded on a smart meter/export meter – for example, solar PV panels produce power during daylight hours.
- Any electricity not used in your home or business is exported to the grid.
- Your supplier tracks this exported energy using their own smart meter.
- You receive payments based on your supplier’s SEG rate, which is set per kWh exported.
Unlike the Feed-in Tariff, SEG does not guarantee a fixed payment rate, with each supplier setting its own price. Finding the best SEG rates means it’s highly important to compare providers carefully so you get the best return possible. Rates can vary significantly as it operates as a more traditionally capitalistic model – some providers offer just 1p per kWh, while others pay over 15p per kWh.
Who is eligible for SEG?
To qualify for SEG payments, you must meet the following requirements:
✅ Have an eligible renewable energy system
Your system must be powered by solar PV, wind, hydro, anaerobic digestion, or micro-CHP with a capacity of up to 5MW (or 50kW for micro-CHP).
✅ Be connected to the UK electricity grid
Your system must be linked to the National Grid so that surplus electricity can be exported smoothly.
✅ Have an MCS-certified installation
To ensure functionality and safety, your system must be installed by a Microgeneration Certification Scheme (MCS)-approved installer or an equivalent certification body.
✅ Use a smart meter
You need a smart meter with an export function to measure the exact amount of electricity sent to the grid. Older meters that cannot track export data won’t qualify.
SEG vs. the Feed-in Tariff (FiT) – how the system has developed
In 2019 the Feed-in Tariff (FiT) scheme ended for new applicants, leaving a gap in incentives for small-scale renewable energy generation. The Smart Export Guarantee (SEG) was introduced in 2020 to replace it, albeit with some key differences. While both schemes allow households and businesses to earn money from renewable energy, SEG operates under a different, arguably more dynamic model.
Key Differences Between SEG and FiT
Feature | Feed-in Tariff (FiT) | Smart Export Guarantee (SEG) |
Payment type | Fixed rates for both generation and export | Variable rates for export only |
Duration | 20–25 years of guaranteed payments | No fixed term – subject to supplier rates |
Government-backed tariff | Yes, with government-set rates | No, suppliers determine their own rates |
Smart meter requirement | No | Yes, to track exported electricity |
✅ Pros of SEG:
- More competitive rates – the system allows some suppliers to offer high-paying tariffs, rewarding users who shop around and operate with savviness.
- Better integration with modern smart energy systems – SEG is designed for today’s grid, where users can track energy flows in real-time, allowing for more dynamic pricing.
- More flexible market-driven approach – instead of fixed government rates, competition between energy suppliers can drive better deals.
❌ Cons of SEG:
- Less financial security – unlike FiT, which offered guaranteed payments for up to 25 years, SEG rates fluctuate and depend on supplier offers.
- No payment for generated electricity – FiT provided two income streams (generation + export), while SEG only pays for excess electricity sent to the grid.
The Smart Export Guarantee is a step forward in aligning renewable energy with modern electricity markets, while also offering more active producers and savvy property owners the opportunity to thrive. However, it’s worth noting that even the best Smart Export Guarantee rates don’t necessarily offer the long-term stability of the Feed-in Tariff. For households with solar panel installations, finding the best SEG rates is key to maximising returns.
The best Smart Export Guarantee rates & major SEG providers in 2025
As outlined above, to maximise your earnings, it’s essential to compare the best rates across a variety of energy suppliers offering Smart Export Guarantee tariffs. The following section will provide insight into the highest-paying SEG tariffs, the factors influencing pricing and a detailed breakdown of major SEG providers in the UK.
SEG rates fluctuate due to several factors, including:
- Wholesale electricity prices – as market prices change, so do SEG export rates.
- Supplier policies – some suppliers offer competitive rates to attract customers, while others provide lower tariffs.
- Time-of-use pricing – a number of providers adjust rates based on peak and off-peak hours.
- Battery storage incentives – certain suppliers offer premium rates for customers with battery storage.
Along with flat rates, it’s important to consider any additional benefits offered by each SEG-eligible business.
Major SEG providers and their export tariffs
Below is a detailed breakdown of the key players in the UK’s SEG market, including eligibility, contract terms, and benefits.
Octopus Energy SEG
The Octopus Smart Export Guarantee is actually one of the lower ones, at just 4.1p/kWh. However, it does benefit from being open to all customers with a smart meter and certified solar PV installation. It’s worth noting that they do offer Octopus Outgoing for their existing energy customers, with a higher rate of 15p/kWh.
E.ON Next SEG
The E.ON Next SEG rates differ between plans, with three options available:
- Next Export Premium – 21p/kWh
- Next Export Exclusive – 16.5/kWh
- Next Export – 3p/kWh
These rates are based on different eligibility standards, such as being existing customers and having solar panels installed by the E.ON team.
EDF SEG
The EDF Smart Export Guarantee model offers a variety of different rates based on varying eligibility criteria. These rates include:
- Export Exclusive – 20p/kWh
- Export – 15p/kWh
- SEG Export Variable Value – 5.6p/kWh
- SEG Export Variable Value – 3p/kWh
These rates vary based on fairly wide-spanning conditions, so it’s important to research each of them before committing.
Scottish Power SEG
The Scottish Power Smart Export Guarantee is one of the best flat rates in the country, paying customers who hit SEG eligibility 12p/kWh, and 15p/kWh if they installed solar technology with Scottish Power.
British Gas SEG
British Gas Smart Export Guarantee rates operate on the two-tier model, with its flat open rate at 3.02p/kWh and its Export Earn Plus model sitting at 15.1p/kWh.
With this information in mind, it’s worth noting that the majority of SEG rates are significantly better if you choose to work with a company you already receive energy from. Flat rates are generally significantly lower.
Other Notable Providers
Several smaller providers, such as Bulb, So Energy and Good Energy, also offer SEG tariffs. Rates and terms vary, but they can sometimes present competitive offers in local areas, particularly for customers with unique energy setups.
Choosing the right SEG tariff
As we can see, SEG providers offer different tariff structures, and choosing the right one can significantly impact your earnings. Some of the models include:
- Fixed-rate SEG tariffs that provide a guaranteed price per kWh exported, ensuring consistent payments. Ideal for users who prefer stability and predictable earnings.
- Variable-rate SEG tariffs that fluctuate based on wholesale electricity prices. Some suppliers may offer higher rates during peak demand periods, so you can earn more if you can export strategically.
- Battery-specific tariffs – some providers offer premium rates for users with battery storage, especially those who can export during peak demand hours.
- Bundled energy deals mean you can benefit from better SEG rates if you also purchase your electricity from them. Consider whether switching your energy supplier could unlock higher SEG payments.
How to maximise your earnings from the SEG
Maximising your SEG earnings requires a strategic approach. Here are some ways you can approach it:
Increasing your export volume
It’s simple: the more electricity you export, the more you earn from SEG payments. It’s important to understand some effective techniques to increase your surplus energy:
Invest in battery storage – A battery storage system allows you to store excess solar energy and strategically export it when SEG rates are higher. Some providers offer juicier rates for users with battery storage.
Reduce on-site energy consumption – You can increase the amount of electricity available for export by using energy-efficient appliances and scheduling high-energy activities (e.g., laundry, dishwashing) during off-peak hours,
Upgrade your solar system – If feasible, expanding your solar panel system or upgrading to more efficient panels can boost energy generation, leading to higher export volumes.
Monitor energy usage – Smart meters and energy management apps help track your consumption and export trends. You can then make tweaks to your weekly routine to optimise when and how you use electricity.
Combining SEG with other savings strategies
To maximise overall savings, it’s beneficial to integrate SEG payments with other energy efficiency measures:
Time-of-use tariffs
Some energy suppliers offer tariffs where electricity is cheaper during off-peak hours. If you have battery storage, you can charge your battery at low rates and export stored energy at higher SEG rates.
Energy-efficient appliances
Upgrading your household appliances to alternatives with high energy efficiency ratings reduces your overall consumption, allowing more of your generated electricity to be exported.
Solar tracking systems
Solar panels with tracking systems adjust their angles to follow the sun’s movement, maximising electricity generation and, consequently, SEG earnings.
Smart home integration
Automated energy management systems, such as apps or software, can optimise when you consume and export electricity, so that you maximise your returns under your chosen SEG plan.
Other essential SEG facts to understand – the importance of smart meters
The Smart Export Guarantee (SEG) requires accurate tracking of the electricity you export to the grid, which is why it’s essential to use a smart meter to ensure you get the most accurate, fair payments. This section explains why a smart meter is required, how to get one installed, and potential compatibility issues.
Smart meters help by:
✅ Tracking exported electricity – unlike traditional usage meters, a smart meter records how much energy you export back to the grid right then and there.
✅ Ensuring accurate payments – SEG suppliers rely on smart data to calculate your earnings. Without one, they cannot measure or compensate for your exported electricity.
✅ Providing usage insights – monitor your energy generation, usage, and exports, helping you optimise energy savings.
If you don’t already have a compatible smart meter, you’ll need to arrange an installation:
📞 Contact your energy provider – most major suppliers offer free smart meter installations to contribute to the national rollout.
⚡ Confirm export compatibility – some first-generation (SMETS1) meters don’t support export readings. Ensure you receive a second-generation (SMETS2) meter, which can handle SEG exports.
📅 Schedule installation – appointments are usually quick and free, but availability varies by supplier.
Make sure to consider some aspects about your smart meter before you have it installed, such as:
- Compatibility for export data
- Any supplier-specific requirements
- Making sure it fully communicates with your supplier before you sign up for SEG
By making these checks you can guarantee that you get the best SEG returns possible.
Are SEG rates likely to improve?
As the UK continues to embrace solar energy, the Smart Export Guarantee (SEG) rates may well end up trending in the positive, allowing homeowners to benefit from their eco-friendly choices more profoundly. Solar adoption is on the rise for a wide variety of reasons, ranging from increased sustainability in culture and funding incentives becoming more available. This rise will drive competition, potentially taking SEG rates to the next level.
Policy changes and government incentives
The UK Government has been bolstering renewable energy initiatives, regardless of the incumbent party, meaning that the public could soon see more new incentives to accelerate solar adoption. Future policy updates could include enhanced battery storage incentives, making it more affordable for consumers to store excess energy for additional exporting. Such measures would further support the transition to greener energy solutions and the pursuit of overarching Net Zero goals and help consumers get more from their investments in solar power.
The SEG is one of the many elements contributing towards reaching the UK’s ambitious target of achieving net-zero emissions by 2050. SEG promotes decentralised energy production by encouraging the generation and export of renewable energy, which plays a key role in reducing the UK’s reliance on fossil fuels. The SEG helps ensure that renewable energy is efficiently distributed across the country, supporting grid balancing and contributing to the overall stability of the energy network.
Learn more about solar panels and schemes
The Smart Export Guarantee (SEG) offers opportunities for solar panel owners to earn money by exporting excess energy. To maximise payments, it’s crucial to compare rates from providers, considering factors like contract length, payment terms and customer service when selecting the best provider for your needs.
Remember, SEG rates can change, so staying updated on policy updates will help ensure you’re getting the most competitive rates. Additionally, investing in battery storage can further optimise energy savings by allowing you to store excess solar energy for use during peak demand times, improving both your energy independence and overall savings.
For more insights into solar panels and UK schemes, visit our blog today!