Smart Export Guarantee

The Smart Export Guarantee (SEG) is the UK government-backed scheme that requires licensed electricity suppliers with 150,000 or more domestic customers to pay small-scale renewable energy generators for surplus electricity they export to the National Grid. Launched in January 2020, the SEG replaced the Feed-in Tariff (FiT), which closed to new applicants at the same time. For solar PV installers and other renewable energy businesses, the SEG is a key part of the financial case for installation - and registering customers onto a tariff is a standard part of the commissioning and handover process.

How the SEG Works

When a property with solar panels, a small wind turbine, or another eligible low-carbon generation system produces more electricity than the occupant uses on site, the surplus is exported to the grid. Under the SEG, eligible generators choose a licensed supplier to pay them for that exported electricity. Suppliers set their own tariff rates, which must be above zero but are otherwise unregulated - meaning rates vary significantly and change over time.

As of mid-2026, domestic export tariffs range from around 3p per kWh on entry-level variable tariffs to over 27p per kWh on battery-linked flexible tariffs offered by certain suppliers. The best rate available to non-customers without a battery is in the region of 15-16p per kWh, depending on the supplier.

To register for a SEG tariff, three conditions must be met:

• The system capacity must be 5MW or under (far higher than any domestic or standard commercial installation)
• The installation must hold a valid MCS certificate (Microgeneration Certification Scheme)
• The property must have an export meter capable of measuring electricity sent to the grid

Why SEG Registration Matters at Handover

For residential solar installers, not completing SEG registration at handover is a common gap - and one that damages the customer relationship months later, when they realize they have been exporting electricity for free. In 2023-2024, a total of £30.7 million was paid out to SEG generators across the UK, representing a 327% increase on the prior year, according to The Eco Experts. Customers who miss the registration window leave real income unclaimed.

For commercial solar contractors, the SEG consideration is slightly different: many commercial systems are sized to maximize self-consumption, reducing the amount exported. Where export does occur on a commercial system, the terms of the export agreement should be confirmed during the sales and commissioning process, not left as an afterthought. Tracking which customers have completed SEG or export tariff registration - and following up on those who haven't - is a standard part of post-installation account management for solar businesses.