Summary

The Smart Export Guarantee replaced the Feed-in Tariff (FiT) in January 2020. Unlike the FiT, the SEG does not guarantee a minimum rate — each licensed supplier sets its own rate, and rates can be fixed or variable. The result is a competitive market for export payments, but also more complexity for customers choosing a supplier.

For solar PV installers, the SEG is a selling point — it means the customer gets paid for every unit of electricity they export to the grid. Explaining the SEG correctly, providing the MCS certificate, and directing customers to compare current rates is part of good customer service and is referenced in MCS requirements.

Key Facts

  • SEG (Smart Export Guarantee) — BEIS policy framework from January 2020; requires obligated electricity suppliers to offer a positive (above zero) tariff for eligible small-scale generation exports
  • Obligated suppliers — energy suppliers with 150,000+ domestic customers must offer at least one SEG tariff; as of 2026, major obligated suppliers include: Octopus Energy, British Gas, EDF Energy, E.ON, Scottish Power, OVO, Shell Energy
  • Non-obligated suppliers — smaller suppliers may choose to offer SEG tariffs voluntarily; this includes some specialist green energy suppliers
  • Eligible technologies — solar PV (up to 5MW), wind (up to 5MW), hydro, micro-CHP (up to 2kW), anaerobic digestion (up to 5MW); solar PV is by far the dominant SEG technology
  • MCS certification requirement — the installation must hold a valid MCS installation certificate; alternatively, the installer must be certified under the MCS scheme and issue a certificate, OR the technology must be certified through an MCS-approved equivalent scheme
  • Export meter or half-hourly metering — SEG payments require a smart meter capable of half-hourly metering or an export meter; the energy supplier installs the smart meter (free to the customer) if required; standard smart meters (SMETS2) in the UK can measure export
  • Ofgem SEG register — Ofgem administers the SEG; licensees must register with Ofgem and publish their SEG tariffs; Ofgem monitors compliance
  • Rate comparison — SEG rates range from approximately 4p/kWh (minimum offered by obligated suppliers) to 15p/kWh for premium fixed-rate tariffs (Octopus, OVO) as of 2026; variable tariffs (Octopus Agile Export, Ripple Export) can pay more or less than grid price
  • Agile Export — Octopus Energy's variable export tariff; tracks the grid half-hourly price; at times of high renewable generation, prices can go negative (customer is charged for exporting); at times of high demand, rates can exceed 30–40p/kWh
  • No minimum export volume — customers can switch SEG supplier at any time; there is no lock-in requirement
  • Previous FiT customers — installations commissioned before 31 March 2019 and registered for the Feed-in Tariff are not eligible for the SEG (they continue on the FiT)

Quick Reference Table: SEG Overview

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Aspect Detail
Launch date 1 January 2020 (replaced FiT)
Minimum rate guaranteed None — supplier sets own rate (must be >0p/kWh)
MCS certificate required? Yes — MCS installation certificate or equivalent
Smart meter required? Yes — SMETS2 or half-hourly export meter
Payment Per kWh exported (measured by smart meter)
Typical UK rate range 4–15p/kWh fixed; variable rates can vary widely
Customer can switch supplier? Yes, at any time
Ofgem-regulated? Yes — Ofgem administers; suppliers register with Ofgem

Detailed Guidance

Who Qualifies for the SEG?

Qualifying installation requirements:

  1. Located in Great Britain (not Northern Ireland, which has different schemes)
  2. Total installed capacity ≤5MW (virtually all domestic and small commercial solar PV qualifies)
  3. Installed by an MCS-certified installer (or equivalent: see Ofgem's published list)
  4. Has a valid MCS installation certificate on the MCS database
  5. The property has (or is willing to have) a smart meter that can measure half-hourly export

Who cannot claim:

  • Installations registered under the Feed-in Tariff (FiT) — they remain on the FiT and are not eligible for SEG simultaneously
  • Installations without an MCS certificate (including old pre-MCS era systems not grandfathered onto FiT)
  • Installations by non-MCS certified installers where no equivalent certification exists

MCS certificate lodging: The installer must lodge the MCS installation certificate within 10 days of commissioning. The certificate is added to the MCS public database. The customer's energy supplier checks the database to verify eligibility when the customer applies for SEG.

Choosing a SEG Licensee

The customer can apply to any obligated supplier for an SEG tariff — they do not need to be a customer of that supplier for supply. However, some suppliers only offer SEG to their own supply customers.

How to choose:

Step 1: Check current rates Current SEG rates are published on each supplier's website and on comparison sites (Electricity Match, SEGSupermarket — verify current tools as these evolve). Rates change; a supplier's rate at the time of installation may differ from the rate available when the customer applies.

Step 2: Assess tariff type

  • Fixed rate: a set p/kWh for a defined period (e.g., 12 months); predictable income; may be lower than variable rates during periods of high demand
  • Variable (market-linked): tracks grid prices; can be higher or lower than fixed rates; some customers prefer the transparency
  • Octopus Agile Export: suited to customers who export at predictable times and want to track peak-price export windows; complex for less engaged customers

Step 3: Consider bundled supply tariffs Some suppliers (Octopus, OVO) offer better SEG rates to customers who are also on their electricity supply tariff. A customer who switches supply to Octopus Go (cheap overnight rate for EV charging) AND uses Octopus SEG can get good rates on both import and export in a single relationship.

Step 4: Apply for SEG The customer applies directly to the chosen licensee (not via the installer). They provide:

  • MCS installation certificate number (the installer provides this at handover)
  • Smart meter serial number or confirmation that they have a smart meter
  • Property address and contact details

The supplier verifies against the MCS database, installs a smart meter if not already present, and begins paying export from the date of acceptance.

What Installers Must Tell Customers

MCS 001 (installer standard) and good practice require the installer to:

  1. Explain the SEG exists — inform the customer that they can earn payment for electricity exported to the grid; explain the application process
  2. Provide the MCS installation certificate — this is the key document for SEG application; provide it at handover
  3. Explain smart meter requirement — advise that a SMETS2 smart meter is needed; explain that they can request a free smart meter from their energy supplier if they don't already have one
  4. Direct the customer to compare SEG rates — point them to Ofgem's guidance or suggest they compare current rates before committing to a licensee
  5. Not to sell or recommend a specific SEG supplier — unless the installer is also an energy broker, directing customers specifically to one supplier without comparison may not be in the customer's best interest

What installers should NOT do:

  • Claim specific SEG rates to the customer at point of sale without caveat that rates change
  • Promise future SEG income as a fixed return for the lifetime of the system — rates are not guaranteed beyond the current tariff period
  • Imply the customer must use a particular supplier

SEG and MCS: The Certification Chain

The SEG relies on the MCS certification scheme to verify installation quality. The chain is:

  1. Installer is MCS-certified under MCS 001
  2. Installation uses MCS-approved products (MCS 012) or equivalent IEC-certified products
  3. Installer issues an MCS installation certificate and lodges it on the MCS database
  4. Customer uses the certificate number to apply for SEG with their chosen supplier
  5. Supplier verifies the certificate on the MCS database and opens the export account

If any link in this chain is broken (installer not MCS-certified, certificate not lodged, certificate expired or revoked), the customer cannot access SEG. This is why MCS certification maintenance (see mcs certification solar) directly affects the customer's financial returns.

Frequently Asked Questions

Can a customer with an older system (e.g., 2018) apply for SEG?

If the system was commissioned before 31 March 2019 and registered on the FiT: no, they are on the FiT and not eligible for SEG while receiving FiT payments. If the system was commissioned before 2020 but not registered on the FiT (missed the FiT application window), it may be eligible for SEG if it has an MCS certificate and meets the qualifying criteria. Check with Ofgem's published eligibility guidance.

Does the customer need to have solar PV with SEG? Can they have any other export?

SEG covers multiple technologies, but in practice, most SEG applications are for solar PV. Domestic wind turbines and micro-hydro could also qualify. A solar battery (that can export to the grid) does not independently qualify for SEG unless there is a qualifying solar PV installation at the same property.

How much can a customer earn from SEG?

Approximately 4p–15p per kWh exported. A typical UK domestic solar PV system (4kWp) exports approximately 1,000–1,500kWh/year depending on household consumption. At 10p/kWh, this is £100–£150/year. This is modest compared to the value of self-consumed solar (25–34p/kWh avoided import), but it is a meaningful contribution over the life of the system.

My customer's supplier doesn't offer SEG. What should they do?

Under the SEG framework, obligated suppliers (>150,000 customers) must offer at least one SEG tariff. If the customer's current supply tariff is with an obligated supplier, the supplier must offer SEG — the customer should request it directly. If the supplier claims no obligation (i.e., is below the threshold), the customer can open a SEG account with a different obligated supplier without switching their electricity supply.

Regulations & Standards