Glossary · UK
What is Smart Export Guarantee (SEG)?
A mandatory scheme requiring larger energy suppliers to pay households for surplus renewable electricity exported to the national grid from solar panels or other eligible technologies.
Full Definition
The Smart Export Guarantee (SEG) was introduced in January 2020, replacing the legacy Feed-in Tariff (FiT) export payments for new installations. Under the SEG, all licensed electricity suppliers with more than 150,000 domestic customers are legally required by Ofgem to offer at least one SEG tariff to eligible small-scale generators. Eligible technologies include solar photovoltaic (PV) panels (up to 5 MW), wind turbines (up to 5 MW), micro-combined heat and power (micro-CHP, up to 50 kW), hydro (up to 5 MW), and anaerobic digestion (up to 5 MW). The only requirement is that the export rate must be greater than zero -- Ofgem does not set a minimum rate, so rates vary considerably between suppliers and tariffs, typically ranging from around 1p/kWh to over 15p/kWh for the most competitive variable or fixed tariffs available in 2026. A smart meter (or suitable export meter) is required to verify actual export volumes. Households with eligible installations certified under the Microgeneration Certification Scheme (MCS) can sign up to any SEG tariff; those who were already receiving FiT export payments can also apply for SEG for any generation not covered by FiT. Income received under SEG is generally treated as miscellaneous income for tax purposes, though for most households the amounts are small. Shopping around between suppliers is advisable, as rates differ significantly.