The Smart Export Guarantee (SEG) is a government-backed scheme that requires licensed energy suppliers to pay solar panel owners for the surplus electricity they export to the national grid. Introduced in January 2020, the SEG replaced the original Feed-in Tariff (FiT), which closed to new applicants in April 2019. If you have solar panels installed today, the SEG is the primary mechanism through which you can earn money from the electricity you generate but do not use yourself.
How the SEG Replaced the Feed-in Tariff
The Feed-in Tariff was a generation-based payment: you were paid for every unit of electricity your panels produced, regardless of whether you used it or exported it. The SEG works differently — you are only paid for electricity you export to the grid. This means the financial incentive under the SEG is smaller in absolute terms than the old FiT, but the SEG still provides a meaningful income stream, particularly for homeowners without battery storage whose panels regularly generate more than their home can use during daylight hours.
Unlike the FiT, SEG rates are set competitively by energy suppliers rather than by the government, which means rates vary significantly between providers and can change over time. There is no government-guaranteed minimum rate — only the requirement that the rate must be above zero. This creates a market where shopping around for the best SEG tariff pays off.
Current SEG Rates From Major Suppliers
SEG rates in 2026 vary considerably across the market. Here is a guide to what major suppliers are offering:
- Octopus Energy: Offers several SEG-style tariffs including Outgoing Octopus Fixed (around 15p/kWh) and the Agile Outgoing tariff, which pays variable rates based on wholesale prices and can spike significantly during periods of high grid demand.
- British Gas: Offers a SEG tariff typically in the range of 3-5p/kWh, making it one of the lower-paying options in the market.
- E.ON Next: Competitive fixed SEG rates typically in the 5-10p/kWh range, with regular reviews.
- EDF Energy: Fixed rate SEG tariff typically around 5-7p/kWh.
- Ovo Energy: Fixed SEG rates in the 4-6p/kWh range.
For current rates, always check directly with suppliers as these figures change regularly. You do not have to use your electricity supplier for your SEG tariff — you can register with any eligible supplier.
SEG Eligibility Requirements
To qualify for the Smart Export Guarantee, your solar installation must meet the following criteria:
- MCS certification: Your system must be installed by an MCS-accredited installer and certified under the Microgeneration Certification Scheme. All D&R Energy installations are MCS-certified as standard.
- System size: Systems up to 5MW are eligible, though residential systems are almost always well within this limit.
- Smart meter: You must have a smart meter (SMETS2 or compatible) that can record half-hourly export data. Your energy supplier will arrange this if you do not already have one.
- Licensed exporter: You must apply to a licensed energy supplier that offers a SEG tariff. Not all suppliers are obligated to offer SEG (only those with 150,000+ customers), but most major suppliers do.
How Much Can a Bristol or Somerset Home Earn From SEG?
The amount you earn from the SEG depends on how much electricity you export, which in turn depends on your system size, your household's electricity consumption patterns, and whether you have battery storage. For a typical Bristol or Somerset household with a 4.5kWp solar system and no battery storage, exporting around 50-60% of generation, SEG earnings at an average rate of 10p/kWh could amount to approximately £200-£300 per year.
Households that actively time-shift consumption — running dishwashers, washing machines, and EV chargers during peak solar hours — can reduce exports and increase self-consumption, but may earn less from SEG as a result. This is generally the better financial strategy, since you save more by using solar electricity directly (avoiding 24-28p/kWh import costs) than you earn by exporting it at 3-15p/kWh. Overall SEG earnings for Somerset homeowners typically range from £150 to £400 per year depending on system size and usage habits.
Battery Storage and SEG: Understanding the Trade-Off
Adding battery storage to your solar system will typically reduce your SEG earnings, because your battery will capture surplus solar generation before it can be exported to the grid. However, this is almost always the financially superior outcome. The electricity stored in your battery and used in the evening saves you 24-28p per kWh on your import bill, compared to the 3-15p you would earn by exporting it via SEG.
For homeowners with a battery, the optimal SEG strategy is to export only after your battery is fully charged. Some advanced systems, particularly those using Octopus Agile Outgoing, can be programmed to export strategically during high-price periods, maximising earnings while maintaining battery reserves for home use.
How to Sign Up for the Smart Export Guarantee
Signing up for the SEG is straightforward once your solar system is installed and MCS-certified. You apply directly to your chosen energy supplier — either online or by phone. You will need your MCS certificate number, your smart meter details, and your property address. Most suppliers will begin making SEG payments within one to two billing cycles of your application being approved.
D&R Energy provides all necessary MCS documentation at the point of installation, making your SEG application as simple as possible. To learn more about the financial benefits of solar, visit our solar panel costs guide, our solar grants page, or our dedicated Smart Export Guarantee guide. Ready to get started? Contact us today for a free quote.
