The UK Smart Export Guarantee: Rates, Rules and the Honest Economics

The Smart Export Guarantee is how UK solar owners get paid for surplus electricity. The rules are simple; the rates are anything but. Here is how the scheme actually works in 2026, what the best tariffs pay, and why exporting is still the consolation prize compared with using your own power.

The Smart Export Guarantee (SEG) replaced the old feed-in tariff for new installations in January 2020. It is not a subsidy and there is no government-set rate. Instead, Ofgem requires every licensed electricity supplier with more than 150,000 domestic customers to offer at least one export tariff that pays you something above zero for each kilowatt-hour you send to the grid. That is the entire mandate: the price must be greater than nothing. Everything else – the rate, the contract length, the conditions – is up to the supplier.

What SEG rates actually look like in 2026

Because suppliers only have to beat zero, the spread is enormous. At the time of writing, published SEG and export tariffs range from around 1p/kWh at the bottom to variable tariffs that can exceed 25–30p/kWh during evening peak windows. A tenfold difference between the worst and best flat rates is normal, so picking a tariff carelessly can cost you hundreds of pounds a year.

These figures move frequently – suppliers reprice export tariffs several times a year – so treat any table, including this one, as a snapshot and check current supplier rate pages before signing.

Do you have to export with your import supplier?

No. SEG is deliberately unbundled: you can buy electricity from one company and sell your surplus to another. In practice, though, the best fixed rates (typically in the 12–16p/kWh band in 2026) are usually reserved for customers who also take that supplier's import tariff. Standalone export deals exist and are worth having if you like your current import tariff, but they generally pay a few pence less. Run both combinations: a slightly worse import rate plus a much better export rate often wins overall.

Agile and flexible export tariffs

Some suppliers price exports against the half-hourly wholesale market or a time-of-use schedule. Exporting during the evening peak can earn two to three times a flat rate, but overnight and midday values can be low. Without a battery you export when the sun shines, not when prices peak, so pure solar households often do better on a good fixed rate. With a battery, time-of-use export tariffs become far more interesting.

What you need to qualify

• An eligible installation – solar PV up to 5 MW, and for most suppliers the system (or installer) must be MCS-certified or equivalent. Keep your MCS certificate; every SEG application asks for it.
• A smart meter capable of half-hourly export readings (a second-generation SMETS2 meter, or a SMETS1 that has been remotely upgraded). No smart meter, no SEG payments.
• Proof and paperwork – typically your MCS certificate number, a recent bill or MPAN, and sometimes DNO notification documents.

How to apply and switch

1. Compare current export rates – supplier websites and comparison tables are updated regularly; check whether the headline rate requires you to import with that supplier.
2. Apply through the supplier's SEG page with your MCS certificate and meter details. Approval typically takes days to a few weeks.
3. Payments are made per kWh exported, usually quarterly or as bill credits, based on actual meter readings.
4. Switching later is straightforward and there is generally no exit penalty on variable export tariffs, though fixed deals may run 12 months. You can switch export supplier without touching your import supply – but if your top rate was conditional on importing with them, losing the import account usually drops you to their standalone rate.

The honest economics: self-use still wins

Here is the number that matters. Under the July–September 2026 price cap, average imported electricity costs about 26p/kWh. A good SEG rate is around 15p/kWh. Every kilowatt-hour you use yourself is therefore worth roughly 1.7–2 times what the same kilowatt-hour earns as an export:

The practical conclusions: size your system to your consumption rather than your roof, and shift flexible loads – dishwasher, washing machine, EV charging, immersion heater – into daylight hours. Chasing an extra penny of export rate matters far less than moving 500 kWh a year from export to self-use. We cover this trade-off in depth in our self-consumption vs export guide.

Worked example: 4 kW system

Take a typical 4 kW system generating 3,400 kWh/year, with 40% self-used and 60% exported, at 26p import and 15p export:

Notice that 40% of the generation produces more value than the 60% that is exported. Push self-use to 55% and the same system is worth about £715/yr with no hardware changes. You can test your own split in our solar savings calculator.

Batteries and the SEG

A battery raises self-consumption, which is the main prize, but it also unlocks export arbitrage. Several time-of-use tariffs let you charge the battery from cheap overnight grid electricity (sometimes under 10p/kWh) and export or self-use during the expensive evening window – some export tariffs even pay for grid-charged energy sent back at peak times, though others explicitly exclude brown electricity, so read the terms. Whether the battery pays for itself depends heavily on your tariff pair and usage pattern; run the numbers in our battery payback calculator before assuming it does.

VAT and installation costs

Solar panels, batteries and associated installation work on residential properties currently attract 0% VAT in Great Britain (a relief scheduled to run until 31 March 2027). That is worth roughly £1,000–£1,400 on a typical install compared with the standard 20% rate and is applied automatically by the installer – no claim needed.

Common mistakes

• Staying on a default 1–3p rate. Suppliers will not chase you to switch. Ten minutes of comparison can quadruple your export income.
• Chasing the headline rate without checking conditions. Many top rates require importing with the same supplier, or owning a battery, or a specific hardware brand.
• Oversizing the array for export income. At 15p export vs 26p import, extra panels sized purely for export pay back slowly. Size to usage first.
• Forgetting the smart meter. Exports are unmetered without one, and no supplier will pay on estimates.
• Treating today's rates as permanent. SEG tariffs are repriced frequently and most are variable. Recheck your rate at least once a year, and always against current supplier tables.

Frequently asked questions

What is the minimum SEG rate a supplier must pay?

There is no minimum beyond being above zero. Ofgem requires large suppliers to offer an export tariff that pays more than nothing, which is why rates range from about 1p to well over 20p/kWh. The obligation guarantees a market exists, not a fair price, so comparing tariffs is essential.

Do I need a smart meter to get SEG payments?

Yes. Suppliers pay on actual half-hourly export readings, so you need a smart meter capable of recording exports, normally a SMETS2 or an upgraded SMETS1. If you do not have one, your supplier should fit one, though lead times vary by region.

Can I export to a different supplier than the one I buy electricity from?

Yes, SEG import and export contracts are separate and you can mix suppliers freely. In practice the highest fixed export rates usually require you to be that supplier's import customer too, so compare the combined cost of import plus export rather than either rate in isolation.

Is it better to export more or use more of my own solar power?

Using it yourself, in almost every case. A self-used kilowatt-hour avoids buying at roughly 26p under the mid-2026 price cap, while a good export rate pays around 15p, so self-use is worth nearly twice as much. Shift flexible loads into daylight hours before worrying about export rates.