Answers · UK 2025/26
What is the Smart Export Guarantee (SEG) and how much can solar panels earn?
The Smart Export Guarantee (SEG) requires licensed energy suppliers (with 150,000+ customers) to pay households for surplus solar electricity exported to the grid. Typical SEG rates are 4–6p/kWh, though some tariffs offer higher rates. A 4kWp solar system might export 1,000–1,500 kWh/year, earning £40–£90/year at typical rates.
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**What is the Smart Export Guarantee?** The Smart Export Guarantee (SEG) replaced the old Feed-in Tariff (FiT) export payments in January 2020. It requires all licensed electricity suppliers with at least 150,000 domestic customers to offer export tariffs to eligible small-scale generators (solar PV, wind, micro-hydro, anaerobic digestion, micro-CHP). **How SEG works** - You generate electricity from solar panels - Any surplus electricity not used in your home is exported to the grid - Your smart meter records exactly how much you export (you need a smart meter with a working export register) - Your SEG provider pays you per kWh exported **Current SEG rates (2026)** Rates vary significantly between suppliers and are set commercially (not fixed by government). Typical rates: - Most suppliers: 4–6p/kWh - Some competitive tariffs: 7–15p/kWh - Octopus Energy Agile/Outgoing: variable rates linked to wholesale price (can be high in peak periods) Always compare current SEG rates — the energy market changes frequently. **How much can solar panels earn under SEG?** **Example: Emma, 4kWp system, south-facing roof** - Annual generation: ~3,400 kWh - Self-consumption (40%): ~1,360 kWh - Export to grid (60%): ~2,040 kWh - SEG payment at 5p/kWh: 2,040 × £0.05 = **£102/year** Emma also saves on electricity bills by using the generated power herself: - 1,360 kWh × 24p/kWh (assumed import rate) = £326/year savings - Total benefit: £102 + £326 = **£428/year** **Eligibility** - System must be MCS-certified - Must have a smart meter with an export meter - Maximum system size: 5MW (effectively all domestic systems qualify) - Must have buildings insurance and inform your insurer of the installation **SEG vs. old Feed-in Tariff** The old FiT paid 3.5–41p/kWh generation (regardless of self-consumption) plus 5.5p export. New installations cannot join FiT — SEG is the only option.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.