Smart export guarantee
The Smart Export Guarantee (SEG) requires certain electricity suppliers to pay small-scale generators for low-carbon power they export to the grid.
What it is
The Smart Export Guarantee (SEG) launched on 1 January 2020. Some electricity suppliers, called SEG licensees, must pay generators for surplus electricity exported to the grid. It replaced the feed-in tariff for new installations.
Who can claim
- Technologies: solar PV, wind, hydro, anaerobic digestion and micro combined heat and power.
- Size: up to 5 MW, or 50 kW for micro-CHP.
- Location: installations must be in Great Britain.
Where you will see it
As an export tariff you sign up to, separate from your supply contract. Each licensee sets its own rate, contract length and terms, but the rate must always be above zero. Payments are based on export meter readings. You do not have to export to the supplier you buy from, so compare.
Why it matters
A business with panels often uses much of the power itself and exports the rest. The payment is small compared with the price you pay to import, so it makes sense to use as much of your own generation as you can. Our guide on the SEG for business covers it in depth.
Example
Illustrative rate only. A farm shop exports 8,000 kWh in a year at an SEG rate of 10p/kWh: 8,000 × £0.10 = £800. Using that 8,000 kWh itself instead would avoid buying it at, say, 28p: 8,000 × £0.28 = £2,240, which is why self-use usually beats export.
Rates differ widely between licensees and change over time. Check current tariffs before signing.
Related terms
See selling surplus solar power, commercial solar panels and solar payback.
Common questions on this topic
Sources
General information only. Energy prices, rules and supplier terms change; check the latest position with your supplier, Ofgem or the Energy Ombudsman before you act.