Selling Electricity Back to the Grid: How the SEG Works

You sell spare solar power to the grid through the Smart Export Guarantee, or SEG. Licensed suppliers pay you for each unit you export, at a rate they set. Published rates run from a few pence to around 15p per kWh on many tariffs, and you usually need an MCS certificate and an export meter.

How the Smart Export Guarantee works

The SEG began in 2020 and replaced the Feed-in Tariff for new systems. According to Ofgem, it covers solar PV and some other technologies up to 5 MW. Suppliers called SEG licensees pay for the power you export, and payments rely on export meter readings.

Ofgem states that each licensee decides the rate, the contract length and the other terms. The only fixed rule is that the rate must be above zero. Ofgem also advises generators to shop around, because tariffs differ so much.

What you need to qualify

You need a solar system in Great Britain and a way to measure what you export. In practice, that means an export meter, which is often a smart meter. You also need a contract with a supplier that offers an SEG tariff.

Most suppliers ask for an MCS certificate, or a scheme they accept as equivalent. Without proof, you may only qualify for a lower, non-regulated export rate. Our page on MCS-certified installations explains how to check a certificate.

How much do suppliers pay

Rates vary a lot, so check them on the day you choose. Published comparisons put them between a few pence and around 15p per kWh on many tariffs. Tariffs that need you to buy power from the same supplier sometimes pay more, and some reward exports at peak times.

Because rates change often, a fixed number here would soon be wrong. Use a recent comparison and read the supplier’s own tariff page. Our page on Feed-in Tariff and SEG advice covers the legacy scheme too.

A simple example

Suppose your panels export 1,500 kWh in a year and your tariff pays 12p per kWh. That earns £180. The figures are an illustration only, not a forecast.

Now compare it with using the power yourself. The Energy Saving Trust’s April 2024 example assumed an import price of 24.5p per kWh. At that price, each unit you use saves more than each unit you export earns. Because of this, using more of your own power usually beats exporting it.

How to choose a tariff

Look at five things. Check whether the rate is fixed or variable, and how long the contract lasts. Check whether you must buy your power from the same supplier. See how the supplier pays you, because some pay in credit rather than cash.

Also check the supplier’s service record and how it handles meter readings. A slightly lower rate from a reliable supplier can beat a high rate from one that pays late. Meanwhile, remember that your needs change, so avoid a long lock-in if the rate is poor.

Can a battery help

A battery lets you store spare power and use it in the evening. As a result, you export less, but each unit you use saves more than you would earn by exporting it. Some time-of-day tariffs also pay more in the evening, so a battery can shift exports to the best hours.

Read our guide on whether solar batteries are worth it for the costs and the break-even sums. Our guide to how much solar panels cost shows what a whole system costs.

The old Feed-in Tariff

The Feed-in Tariff closed to new applicants on 31 March 2019. People already on it keep their payments for the rest of their term. If you bought a system before the closure, check which scheme you are on before you look for an SEG tariff.

Where to look locally

Export rules are national, so every region uses the same scheme. Yet local conditions affect how much you export. See our local guides to solar panels in Sheffield, solar panels in Newcastle, solar panels in Manchester and solar panels in Glasgow. If you want to know whether the whole system pays, read our guide on whether solar panels are worth it.

Sources

• Ofgem: Smart Export Guarantee
• Energy Saving Trust: solar calculator
• MCS: Smart Export Guarantee and MCS

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