If you have solar panels on your home, the Smart Export Guarantee (SEG) ensures you are paid for any surplus electricity you export to the national grid. Rather than giving away your excess solar energy for free, the SEG requires licensed energy suppliers to offer a tariff that pays you for every kilowatt-hour you export. In 2026, SEG rates range from 3p to 15p per kWh, and choosing the right tariff can make a meaningful difference to your annual solar income. This guide explains how the SEG works, compares the tariff types available, and shows you how to maximise your export earnings as a South West homeowner.
How the Smart Export Guarantee Works
The Smart Export Guarantee was introduced in January 2020 as the successor to the Feed-in Tariff (FIT) scheme. Under the SEG, all licensed electricity suppliers with more than 150,000 customers are required to offer at least one export tariff to small-scale generators, including homes with solar panels. The rate they offer must be greater than zero, but there is no minimum rate set by the government, which is why rates vary significantly between suppliers.
To receive SEG payments, your solar installation must be MCS-certified and you must have a smart meter or export meter installed. You then sign up to an SEG tariff with the energy supplier of your choice. Importantly, your SEG supplier does not need to be the same company that supplies your electricity, so you can shop around for the best export rate independently of your import tariff. For more information, visit our Smart Export Guarantee page.
Fixed vs Variable SEG Tariffs
SEG tariffs broadly fall into two categories, and understanding the difference is key to maximising your export income:
Fixed Rate Tariffs
Fixed rate SEG tariffs pay you a set price per kWh for every unit of electricity you export, regardless of the time of day or market conditions. In 2026, fixed SEG rates typically range from 3p to 6p per kWh. The main advantage of fixed tariffs is predictability: you know exactly how much you will earn per unit exported, making it easy to calculate your expected annual income. Fixed tariffs are best suited to homeowners who prefer simplicity and certainty.
Variable and Time-of-Use Tariffs
Variable SEG tariffs pay different rates depending on the time of day, day of the week, or wholesale electricity market prices. Some suppliers offer agile or time-of-use export tariffs that pay significantly more during peak demand periods (typically 4pm-7pm) and less during off-peak hours. Peak export rates on variable tariffs can reach 12-15p per kWh or even higher during periods of high wholesale prices, while off-peak rates may be as low as 1-3p per kWh.
Variable tariffs offer the potential for higher earnings, but they require more active management to maximise returns. This is where battery storage becomes particularly valuable, as it allows you to store your surplus solar energy during the day and export it during the higher-rate peak periods in the evening.
Maximising SEG Earnings with Battery Storage
Without a battery, your solar panels export surplus electricity to the grid as it is generated, which is typically during the middle of the day when demand and export rates are at their lowest. With battery storage, you gain the ability to control when you export, unlocking significantly higher SEG earnings through a strategy known as timed exports.
Here is how timed exports work in practice:
- During the day: Your solar panels generate electricity. Your home uses what it needs, and the surplus charges your battery rather than being immediately exported at a low rate.
- During the evening peak (4pm-7pm): Your battery exports stored solar energy to the grid at the higher peak rate, earning 12-15p per kWh instead of the 3-5p you would have received by exporting at midday.
- Overnight: If you are on a time-of-use import tariff, your battery charges from the grid at cheap overnight rates (as low as 7p per kWh), ready to power your home the next morning.
This strategy can increase your annual SEG income by 200-400% compared to exporting without a battery. A typical 4.5kWp system with a 5.12kWh battery in the South West could earn £200-£500 per year through optimised timed exports on a variable SEG tariff, compared to £80-£150 on a fixed rate tariff without a battery.
How Much Can You Earn from the SEG?
Your annual SEG earnings depend on the size of your solar system, your self-consumption rate, whether you have battery storage, and the tariff you choose. Here are typical annual earnings for South West homeowners in 2026:
- 3.6kWp system, no battery, fixed tariff: £50-£100 per year.
- 4.5kWp system, no battery, fixed tariff: £80-£150 per year.
- 4.5kWp system, with battery, variable tariff: £200-£500 per year.
- 6.3-7.0kWp system, with battery, variable tariff: £350-£700 per year.
While SEG income alone is unlikely to be the primary financial driver of your solar investment, it provides a valuable additional revenue stream that improves your overall return. Over the 25-year lifespan of a solar system, cumulative SEG earnings can add up to £2,000-£15,000 depending on your setup and tariff choice.
MCS Certification: Why It Matters
To receive SEG payments, your solar installation must be MCS-certified. MCS (Microgeneration Certification Scheme) is the industry standard for renewable energy installations in the UK. It certifies that your system has been designed and installed to the required standards by an accredited installer, and it provides the official documentation that energy suppliers require before they will register you for an SEG tariff.
All D&R Energy installations are MCS-certified as standard. We handle the entire certification process on your behalf, ensuring your system is registered and you can begin receiving SEG payments as soon as your installation is complete. If you have an existing solar system that was installed without MCS certification, you will unfortunately not be eligible for the SEG, which is one of many reasons to choose an MCS-certified installer like D&R Energy for your installation.
Choosing the Best SEG Tariff
The best SEG tariff for you depends on whether you have battery storage and how actively you want to manage your energy exports. For homeowners without a battery, a competitive fixed rate tariff offers the simplest and most predictable option. For those with battery storage and a willingness to use timed exports, a variable or time-of-use tariff will deliver higher annual earnings.
SEG tariffs can be changed at any time with no exit fees, so you can switch if a better rate becomes available. D&R Energy can advise you on the most suitable SEG tariff during your installation consultation and help you set up the optimal export strategy for your system.
Get Started with Solar and the SEG
Whether you are considering a new solar installation or want to maximise the earnings from your existing system, D&R Energy is here to help. We design and install MCS-certified solar PV and battery storage systems across the South West, ensuring you qualify for the Smart Export Guarantee and can start earning from day one. Visit our solar panel installation page to learn more about our process, or contact us today for a free, no-obligation quote.
