Smart Export Guarantee (SEG) Rates Compared 2026/27
How the Smart Export Guarantee works for solar panel owners in 2026/27, why rates vary so much between suppliers, and how to work out what your exported electricity is really worth.
What SEG actually pays for
The Smart Export Guarantee requires larger energy suppliers to offer a tariff that pays domestic solar (and other small-scale renewable) generators for the electricity they export back to the national grid — the portion of their generation they do not use themselves at the moment it is produced. It replaced the older Feed-in Tariff scheme, which closed to new applicants in 2019 and paid a more generous, government-guaranteed rate for up to 20 years on both generation and export.
SEG is different in a crucial way: rates are set by individual suppliers, not guaranteed by government, and they can change — sometimes significantly — over time. This means shopping around for your export tariff, and reviewing it periodically, matters more under SEG than it did under the old scheme.
Why SEG rates vary so much
Suppliers set SEG rates competitively and can structure them as either a flat rate (a fixed pence-per-kWh figure applied to all exported electricity) or a variable, half-hourly rate that tracks wholesale electricity prices through the day — often paying more during periods of high demand and less overnight. Households with a smart meter capable of half-hourly export recording can typically access the more sophisticated variable tariffs, which sometimes pay noticeably more on average than simple flat-rate options, though they carry more complexity and less predictability.
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Open Electricity Cost calculatorWorked example: what your export is actually worth
A household with a 4 kWp solar array generates roughly 3,400 kWh a year in a typical UK location. If they self-consume 50% (1,700 kWh) and export the remainder (1,700 kWh):
- At a flat SEG rate of 8p/kWh: 1,700 × £0.08 = £136 a year.
- At a lower flat rate of 4p/kWh: 1,700 × £0.04 = £68 a year.
- At a stronger variable-rate tariff averaging 12p/kWh across the year: 1,700 × £0.12 = £204 a year.
The difference between the lowest and highest scenario here is over £130 a year on an identical system — purely down to which SEG tariff was chosen, which is why comparing suppliers specifically on their export rate, not just their import price, is worth the effort.
SEG vs self-consumption vs battery storage
For most households, the highest-value strategy is to self-consume as much solar generation as reasonably possible — running appliances during sunny hours, or using a battery to shift consumption into the evening — and only rely on SEG income for the genuine surplus that cannot practically be used at home.
Bottom line
SEG turns exported solar electricity into a modest but genuine income stream, typically £60–£150 a year for a standard domestic system, with real variation between suppliers worth checking annually. Because self-consumption is usually worth two to four times more per kWh than exporting, SEG income should be treated as a bonus on top of maximising your own use of generated electricity, not the primary financial driver of a solar investment.
Estimate your electricity costs and potential export income with the electricity cost calculator.
Sources
- Ofgem: Smart Export Guarantee
- Energy Saving Trust: Solar panel and SEG guidance
Frequently asked questions
What is the Smart Export Guarantee?
The Smart Export Guarantee (SEG) requires energy suppliers with more than 150,000 domestic customers to offer a tariff paying households for renewable electricity — mainly solar — that they export back to the grid, replacing the older Feed-in Tariff scheme which closed to new applicants in 2019.
How much can SEG payments actually add up to per year?
For a typical 4 kWp solar installation exporting roughly half its generation, annual SEG income is commonly in the region of £60–£150 a year, though this depends heavily on system size, export rate and how much of the generated electricity is self-consumed versus exported.
Do all SEG tariffs pay the same rate?
No — SEG rates vary considerably between suppliers and tariffs, ranging from a few pence per kWh on some flat-rate tariffs to significantly higher rates on variable, half-hourly export tariffs offered by some suppliers, particularly for households with a smart meter and export-capable inverter.
Do I need a smart meter to receive SEG payments?
Most SEG tariffs require a smart meter capable of recording half-hourly export data, though some suppliers accept manual meter readings on certain tariffs — check with your chosen SEG supplier before assuming eligibility.
Can I switch SEG supplier separately from my main electricity supplier?
Yes — you are not required to take your SEG export tariff from the same supplier that provides your electricity import. Shopping around separately for the best SEG rate is common and can meaningfully increase export income.
Is SEG income taxable?
For most domestic households generating electricity mainly for their own use, SEG income is generally not treated as taxable income by HMRC, though anyone running a larger-scale or commercial generation setup should check their specific position.
How is SEG different from the old Feed-in Tariff scheme?
The Feed-in Tariff paid a generation tariff for all electricity produced (whether used or exported) plus a separate export payment, guaranteed for up to 20 years at a fixed rate. SEG only pays for electricity actually exported, at a rate set by the supplier rather than government-guaranteed, and can change over time.
Should I prioritise a high SEG rate or a cheap import tariff when choosing a supplier?
For most solar households, the difference between import and export rates matters more than either number alone — a modestly lower SEG rate paired with a strong overall deal, including reasonable standing charges, can beat a headline-high SEG rate from an otherwise expensive supplier.
Does battery storage reduce how much I can earn from SEG?
Yes, potentially — using a battery to store surplus solar generation for your own evening use means less electricity is available to export, which reduces SEG income, but usually increases your net financial benefit overall since self-consumption is normally worth more per kWh than the SEG export rate.
Where can I compare my potential electricity costs and savings?
The electricity cost calculator helps estimate your import costs, which combined with an estimate of your exportable solar surplus and your chosen SEG rate gives a realistic picture of net annual electricity spend.
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