Smart Export Guarantee: Everything You Need to Know 

The UK government’s drive towards Net Zero has made renewable energy a key part of the national agenda. For homeowners and small businesses, one of the main incentives to install renewable technology is the Smart Export Guarantee (SEG), which rewards people for exporting surplus energy back to the National Grid. 

Here’s a clear guide to how it works, who can take part, and what the benefits look like. 

What is the SEG? 

Launched in January 2020, the Smart Export Guarantee is a government-backed scheme requiring large energy s uppliers (those with more than 150,000 customers) to pay households and small businesses for the renewable electricity they export. 

Payments are set by individual suppliers, known as SEG licensees. They decide their own tariff structures, provided that the export rate is always above zero. 

For background on how safe working practices are taught in the industry, see Access Equipment Lesson 3. 

Who can take part? 

Any installation up to 5MW (or 50kW for micro-CHP) is eligible if it is located in Great Britain. Approved systems include: 

• Solar PV 

• Wind 

• Hydro 

• Micro-CHP 

• Anaerobic digestion (AD) 

You’ll also need to meet eligibility rules, such as having a smart meter capable of half-hourly readings. 

What types of tariffs are available? 

There are two main types: 

• Fixed-rate tariffs – same payment per unit exported throughout the contract. 

• Variable tariffs – payments fluctuate, sometimes offering higher rates during peak demand. 

At the time of writing, rates range from 1p/kWh to 20p/kWh for fixed tariffs, while flexible options can pay up to 30p/kWh at off-peak times. 

Can you make money? 

Savings come from both sides: 

• Using your own generation cuts what you pay to suppliers (currently c apped at 24.5p/kWh). 

• Exporting surplus earns SEG payments. 

In practice, it’s usually more cost-effective to consume your own generated electricity rather than export it, as SEG rates are often lower than the retail price. 

If you’re unsure about financial protections when purchasing solar systems, you may want to read our Digital Course Return and Refund Policy — a reminder of why clear terms always matter when investing in big purchases. 

What about switching from the Feed-in Tariff? 

The SEG replaced the Feed-in Tariff (FIT) scheme. If you already receive FIT, you cannot claim SEG at the same time. FIT contracts are still valid for existing participants, and they often include a generation payment as well as an export payment. 

In most cases, staying with FIT is the better option until your contract ends. You could choose to opt out early, but it’s important to compare the numbers before making that decision. 

Can SEG be combined with other schemes? 

Yes. While it can’t be combined with FIT, SEG can work alongside other UK grant programmes, such as the Home Upgrade Grant (HUG), which funds energy efficiency improvements including solar panels. 

That means you can install panels with grant support, and then benefit from SEG payments for exported electricity. 

For sparks and learners, opportunities like SEG highlight why the industry is changing fast. Our Electrician Courses Gloucester show how training now includes not just installation skills, but also awareness of schemes shaping customer demand. 

Why it matters for electricians 

As domestic solar continues to grow, demand for skilled sparks is rising. Knowing how SEG fits into the bigger picture helps you explain the benefits to customers, design smarter systems, and build confidence in renewable installs. 

For a g limpse of why proper training underpins every green system, see Access Equipment Lesson 4 — proof that safety knowledge goes hand in hand with technical ability. 

And if you want to see how renewable skills link to wider career pathways, check out Elec Training’s dedicated Elec Training hub for information on courses, careers and compliance. 

What is the Smart Export Guarantee (SEG)? 

The Smart Export Guarantee (SEG) is a UK government-backed scheme launched to incentivize small-scale renewable energy generators by requiring licensed electricity suppliers to pay for excess electricity exported to the national grid, replacing the export element of the discontinued Feed-in Tariff (FIT) scheme. It ensures a minimum payment for eligible exports from systems like solar panels, with rates set by suppliers but guaranteed for a fixed period. In 2025, SEG supports the net-zero transition by promoting household and small business renewables, with over 1.5 million UK homes potentially eligible, generating up to £500 annually in payments depending on system size and usage. Elec Training highlights SEG as a key driver for solar installations, advising clients on supplier comparisons to maximize returns. 

When did the SEG scheme start in the UK? 

The SEG scheme officially started on April 1, 2020, following a 2019 government consultation to succeed FIT’s export payments, which ended for new applicants in March 2019. By 2025, it has evolved with updated Ofgem licensing for suppliers and increased uptake amid falling solar costs, with applications processed via energy providers rather than a central body. Elec Training’s courses cover SEG history in renewable modules, noting its role in boosting post-pandemic green recovery. 

Who is eligible to apply for SEG payments? 

Eligibility for SEG payments requires owning or operating a small-scale low-carbon electricity generator (under 5MW capacity) certified by the Microgeneration Certification Scheme (MCS), a smart meter configured for half-hourly export readings, and an active contract with a licensed SEG supplier. Homeowners, businesses, community groups, or landlords qualify if their system generates and exports renewables, with no income cap but proof of installation via MCS certificate needed. In 2025, over 30 suppliers participate, but applications are supplier-specific—Elec Training assists learners in verifying eligibility during NVQ projects, ensuring compliance for seamless accreditation. 

What renewable systems qualify under SEG? 

SEG qualifies renewable systems including solar PV (up to 50kW for homes/small businesses), wind turbines (up to 50kW), micro-hydro (up to 50kW), and anaerobic digestion plants (up to 50kW) that are MCS-certified and export to the grid. Battery storage alone doesn’t qualify, but paired systems do if renewables generate the power. In 2025, hybrid solar-battery setups are popular for maximizing exports. Elec Training’s solar courses emphasize MCS certification for these systems, training installers on compliant designs to access SEG benefits. 

Do you need a smart meter to take part in SEG? 

Yes, a smart meter is required for SEG participation, as it must be configured for half-hourly export readings to accurately measure and verify exported electricity for payments—second-generation meters with export capability are essential. Without one, suppliers can’t process claims, though free upgrades are available from energy firms. In 2025, over 60% of UK homes have smart meters, facilitating SEG uptake. Elec Training integrates smart meter training in its Level 3 Diploma, preparing electricians for installations that enable clients’ SEG eligibility. 

What’s the difference between fixed and variable SEG tariffs? 

Fixed SEG tariffs offer a guaranteed rate per kWh for a set period (e.g., 12-20 years), providing payment stability regardless of market fluctuations, while variable tariffs adjust periodically based on wholesale prices, potentially higher short-term but riskier for long-term planning. Fixed suits risk-averse users (e.g., 15p/kWh locked in), variable appeals to those betting on energy markets (e.g., 10-20p/kWh fluctuating). In 2025, most suppliers offer both, with fixed dominating for solar exports. Elec Training advises comparing via Ofgem’s register, helping clients select based on usage forecasts. 

How much do SEG payments usually pay per kWh? 

SEG payments typically range from 4p to 15p per kWh in 2025, varying by supplier and tariff—e.g., British Gas offers up to 15.1p/kWh fixed, Octopus Energy 4.1p variable, and E.ON 10p for larger exports—with averages around 8-12p for standard solar systems. Payments are calculated on metered exports, potentially yielding £200-£600 annually for a 4kW setup. Rates are supplier-set but Ofgem-regulated for fairness. Elec Training’s renewable modules guide on rate comparisons, maximizing client ROI through efficient system sizing. 

Can I still claim SEG if I already get the Feed-in Tariff (FIT)? 

Yes, you can claim SEG if on FIT, but only for exports—FIT covers generation (e.g., 4.14p/kWh fixed until 2030+), while SEG replaces FIT’s old 5.24p/kWh export rate, allowing switches to better deals (e.g., 15p/kWh). Existing FIT holders must notify their supplier to join SEG, with no overlap on the same kWh. In 2025, over 800,000 FIT installations can upgrade exports via SEG. Elec Training supports transitions in its upskilling courses, ensuring seamless compliance for ongoing renewables. 

Can SEG be combined with other government grants or incentives? 

Yes, SEG can be combined with grants like ECO4 (up to 100% funding for low-income insulation/solar), the Great British Insulation Scheme (£1bn for efficiency upgrades), or the Boiler Upgrade Scheme for heat pumps, as SEG rewards exports, not installation costs. No double-dipping on the same funding, but stacking is encouraged for net-zero homes. In 2025, SEG enhances ROI on grant-funded systems. Elec Training’s advice integrates these, training installers on eligibility to deliver full client benefits. 

How does SEG benefit electricians and customers installing solar panels? 

SEG benefits customers by providing ongoing income (up to £600/year) from excess solar exports, shortening payback to 5-7 years and boosting property values by 4%, while electricians gain from increased demand—over 1 million new installs projected by 2025—creating jobs in MCS-certified work. It incentivizes battery additions for optimized exports. Elec Training positions its graduates as SEG experts, offering courses on compliant installs to capitalize on this growth, ensuring safe, profitable solar projects for all.