What is SEG?
SEG stands for Smart Export Guarantee. In plain terms, the meaning of SEG is a way of selling solar energy to the grid, though it also pays for exported electricity from wind, hydro, anaerobic digestion and micro-CHP [1]. Since 1 January 2020 the scheme has required some electricity suppliers, called SEG licensees, to pay small-scale generators, such as homes with solar panels, for low-carbon electricity they export to the grid [1]. Suppliers with at least 150,000 domestic electricity customers must offer at least one SEG tariff; smaller ones may offer one voluntarily [3]. Each sets its own rate, contract length and terms, but the rate must always be above zero, and payment is based on export meter readings [1]. At the end of March 2025, 270,395 installations were registered on a SEG tariff, and 270,331 of them were solar PV [5].
Who can get SEG payments?
| Requirement | What you need |
|---|---|
| Technology and size | Solar PV, wind, hydro or anaerobic digestion up to 5 MW, or micro-CHP up to 50 kW [3] |
| Where | Great Britain; SEG is not available in Northern Ireland [1][7] |
| Certification | An MCS certificate or an equivalent; for solar up to 50 kW, both installation and installer certified [3] |
| Meter | A meter at the grid connection that records export and is capable of half-hourly readings; your existing meter may be capable [3] |
| Export MPAN | A 13-digit export reference, different from the import MPAN on your bill; your SEG supplier can provide one [3] |
| Feed-in Tariff | If you get FIT export payments, opt out of them first; FIT generation payments can continue [3][6] |
Without suitable certification a supplier does not have to pay you, though it may choose to [3]. In Northern Ireland, the Energy Saving Trust says regulated suppliers have to provide export terms to small generators, so ask your supplier [7].
Can I export electricity without a smart meter?
Your panels will export surplus electricity either way, but SEG pays only for export that is metered. The meter must be at the point where your home connects to the grid, record export, be capable of half-hourly readings and have an export MPAN [3]. The Energy Saving Trust says you'll need a registered smart meter that records your export [7]. Ofgem's guidance puts the test as a meter capable of half-hourly readings with an export MPAN, and says your existing meter may be capable, so ask your chosen SEG supplier. If your meter cannot be read remotely, contact the supplier about how readings will be taken [3].
How do you apply for SEG?
- Check you qualify. Use the table above. Find your MCS certificate; for a copy, MCS says to ask your installer first; MCS issues a copy, for an admin fee, only if the installer is no longer MCS certified or no longer trading [8].
- Opt out of FIT export if you have it. Contact your FIT licensee. Knowingly collecting FIT export and SEG payments for the same installation at the same time could constitute fraud [3][6].
- Choose a SEG supplier. Any supplier on Ofgem's list; it does not have to be your electricity supplier. Rates, contract length and terms vary, fixed or variable [2][4][7].
- Apply on its website. Each supplier sets out its own application process; ask it exactly what it needs [2][3]. The Energy Saving Trust says suppliers may ask for your MCS certificate [7].
- Get the contract in writing. If you are eligible, the supplier confirms the terms in writing; that is your SEG contract [3].
Your export MPAN. Your import MPAN is the 13-digit number on your electricity bill. Your export MPAN is a different number: Ofgem says your SEG supplier will be able to provide it [3].
Can I sell my electricity back to the grid with E.ON? Yes, if your installation is eligible: E.ON Next is on Ofgem's list of suppliers that must offer SEG from 1 April 2026 to 31 March 2027 [4]. The others on that list are British Gas, E (Gas and Electricity), EDF, Utility Warehouse, Foxglove Energy, Fuse Energy, Octopus Energy, OVO, ScottishPower, So Energy, Utilita [4]. Rates are compared in best export tariffs.
Why are my SEG payments not starting?
- No meter readings yet. A supplier does not have to accept a request for payment until it can access or has received readings from your export meter [3].
- No export MPAN. You need one to be paid; ask your SEG supplier [3].
- Still on FIT export. Suppliers may check the Central FIT Register; opt out of FIT export first [3].
- A battery charged from the grid. Where your export meter also records electricity that did not come from the panels, a supplier does not have to make SEG payments on that export at all, though it may pay on some or all of it. Some ask for extra meters, pro-rate or use estimates [3].
- Payment timing. Payment arrangements follow each contract, and some export can be paid in the following scheme year [5].
If it is still wrong, complain to your SEG supplier first. You can take an unresolved complaint to the Energy Ombudsman after eight weeks, or sooner if the supplier sends a deadlock letter saying it cannot do more; after a deadlock letter you have 12 months to refer it [3][9]. If the Ombudsman accepts the case and you accept its decision, the supplier must put the remedy in place within 28 days [9].
SEG or the Feed-in Tariff?
The Feed-in Tariff closed to new applicants in 2019, and the government then introduced SEG to pay small generators for their export [6][7]. You cannot get FIT export payments, metered or deemed, and SEG for the same installation: opt out of FIT export to move to SEG, and keep your FIT generation payments [6][7]. The difference in how export is counted:
| FIT export | SEG | |
|---|---|---|
| New applicants | Closed in 2019 [6] | Open [2] |
| How export is counted | Metered, or for systems up to 30 kW where export cannot practically be metered, "deemed": a percentage of generation set each year by the government [6] | Export meter readings [1][3] |
Whether switching pays depends on your FIT terms and the SEG rate you can get: see feed-in tariff.
Is the Smart Export Guarantee worth it?
If your panels export, SEG is a guaranteed way to be paid for that electricity [1]; the question is which rate. In MCS's own worked example, a home that uses 1,177 of the 4,059 kWh its panels make would export about 2,882 kWh a year (our calculation, losses ignored) [10]. At 2024/25 rates that is £210 a year at the average untied rate paid (7.3p), £346 at the highest untied rate offered (12p) and £444 at the average tied rate paid (15.4p) (our calculations) [5]. Tied tariffs come with conditions, such as importing from the same supplier or having particular equipment [5].
Ofgem also reports averages of the rates offered, which count each tariff once whatever its take-up, so they say less about what homes received; we use the rates paid [5].
| Tariff type | Average rate paid | Average payment per installation |
|---|---|---|
| Untied | 7.3p per kWh | £119.39 |
| Tied | 15.4p per kWh | £151.15 |
Ofgem found installations on tied tariffs exported 36 per cent less on average, yet were paid 27 per cent more [5].
When is the highest SEG rate not the one to chase?
When its conditions do not suit you. Ofgem says rates alone should not be read as the return from an installation, because some tied tariffs require you to own or buy particular technology or services [5]. It also found some untied tariffs pay more than lower tied ones [5]. Compare the whole bill, including the import tariff a tied export rate comes with: compare export tariffs. A battery changes how much you export: in MCS's worked example, a battery with 7.5 kWh of usable capacity raises the home's solar self-consumption from 1,177 to 2,801 kWh, leaving about 1,258 kWh to export (our calculation, losses ignored) [10]. That is one example home, not a forecast for every 7.5 kWh battery. Whether a battery pays: is a solar battery worth it.
Sources
- Ofgem, Smart Export Guarantee (SEG), read 13 Oct 2026
- Ofgem, Smart Export Guarantee: generators, read 14 Oct 2026
- Ofgem, Smart Export Guarantee: guidance for generators, Dec 2019 (current version), read 14 Oct 2026
- Ofgem, Smart Export Guarantee supplier list (SEG year 7, 1 April 2026 to 31 March 2027), read 14 Oct 2026
- Ofgem, Smart Export Guarantee annual report, SEG year 5 (April 2024 to March 2025), December 2025, read 13 Oct 2026
- Ofgem, Feed-in Tariffs: guidance for generators, content version 19 (file name retains V18), 1 Apr 2026, read 13 Oct 2026
- Energy Saving Trust, Smart Export Guarantee explained, updated 20 May 2026, read 14 Oct 2026
- MCS, MCS certificate queries, updated 20 May 2026, read 13 Oct 2026
- Energy Ombudsman, FAQs, read 14 Oct 2026
- MCS, MCS 032:2025 Solar PV and battery storage pre-sale performance estimate, issue 1.0 (Table 4, use case 1), 1 Jan 2025, read 13 Oct 2026