Smart Export Guarantee for business: selling your surplus power

What the Smart Export Guarantee is

The Smart Export Guarantee (SEG) is a scheme under which electricity suppliers pay small-scale renewable generators for power they send to the grid. It is run by Ofgem, and it replaced the old export payments under the Feed-in Tariff. It applies to businesses as well as households: if your premises has solar panels that sometimes make more than you use, the surplus is what you can sell.

SEG is not a subsidy for generating. It pays for export only. Power you use on site saves you your full supply rate instead, which is almost always worth more. Our guide to commercial solar panels shows the sums.

Who is eligible

According to Ofgem, the eligible technologies are solar PV, wind, micro-CHP, hydro and anaerobic digestion. Installations must be in Great Britain, with total installed capacity of no more than 5MW, or no more than 50kW for micro-CHP. Anaerobic digestion has extra sustainability and reporting requirements.

Certification matters. Ofgem's generator guidance, published in 2020, says solar, wind and micro-CHP installations up to 50kW need both installation and installer certification, with the Microgeneration Certification Scheme (MCS) as the usual route. Larger solar and wind installations, and hydro and anaerobic digestion up to 5MW, need installation certification only. Ask your installer for the certificate and keep it.

If you receive Feed-in Tariff export payments you cannot also claim SEG payments for the same export. If you receive only FIT generation payments, you can still claim SEG. Ofgem's guidance also notes that grants, the Renewable Heat Incentive and REGOs can be combined with SEG.

What you need on site

• An export meter that takes half-hourly readings, fitted where your system connects to the network.
• An export MPAN, a separate number from your import MPAN. See what is an MPAN.
• Payments can only start once the SEG licensee can access or receive readings from that meter. A remotely readable meter means no manual readings.

Payments are based on actual meter readings, not estimates, and the export meter must sit at the connection point to the grid. If your site has several technologies, SEG only covers eligible renewable export, and the licensee may choose whether to pay on mixed export.

Ofgem's generator guidance dates from 2020 and we did not find a later revision. Check Ofgem's SEG pages and your licensee's terms for any changes before you apply.

Who pays you

You apply to a SEG licensee, which is an electricity supplier offering a SEG tariff. You can choose any licensee, even if it is not your current electricity supplier. Larger suppliers must offer a SEG tariff (the government's 2019 announcement put the threshold at more than 150,000 customers), and smaller suppliers can join voluntarily. A generator can hold a SEG tariff with only one licensee at a time.

The licensee sets the rate, tariff type, contract length and payment frequency. The one rule is that the rate must be above zero pence per kilowatt hour exported at all times. Rates differ widely, and we do not quote them here because they change often. Check each licensee's own published tariff.

Choosing a tariff

• Fixed or variable rate? A fixed rate gives certainty; a variable one can move with the market.
• Contract length and exit terms. Ofgem says the confirmation of your application forms the SEG contract, and it should cover complaints, switching and termination rights.
• Payment frequency. Monthly, quarterly or annual payments affect cash flow.
• Whether you need to be an import customer. Not required.
• Time-of-use rates. Some licensees pay more at peak times. A battery lets you export when it pays best.

Worked example

A workshop with a 20kWp array exports 4,000 kWh in a year. Compare two offers: licensee A at 5p/kWh and licensee B at 12p/kWh (both figures invented for the sum).

• A: 4,000 × £0.05 = £200
• B: 4,000 × £0.12 = £480
• Difference: £280 a year.

Compare that with using the same 4,000 kWh on site. At 24.51p/kWh (DESNZ's Q2 2026 non-domestic average), they would save 4,000 × £0.2451 = £980. Using your own power usually beats exporting it, so shift flexible loads such as pumps, hot water and EV charging into daylight hours where you can.

How to apply

1. Get your MCS or installation certificate and commissioning paperwork from your installer.
2. Have your export MPAN and meter details ready, or ask for them to be set up.
3. Compare licensees' SEG tariffs and choose one. Anaerobic digestion generators also complete a separate form for Ofgem.
4. Apply using the licensee's own application route. Written confirmation of approval is your contract.
5. Tell the licensee if you change ownership or extend the system.

If something goes wrong, complain to the licensee first. Ofgem's guidance says that if there is no satisfactory outcome after eight weeks, you can refer the complaint to the Energy Ombudsman. See energy disputes and the Ombudsman.

Other ways to use surplus power

If exporting pays little, consider storing power in a battery or selling to neighbours through a private arrangement, which has its own rules. Read can my business sell surplus solar power? for the options.

Common problems and how to avoid them

• No export meter. Without half-hourly export readings, payments cannot start. Ask your installer who arranges the meter and the export MPAN, and how long it takes.
• Missing certificates. If the installer did not register the system or give you the right certificate, the licensee may refuse the application.
• Changing licensee. You can only hold a SEG tariff with one licensee at a time, so tell the old licensee if you move.
• Selling the property. The contract rights and meters need updating. Ofgem's guidance says licensees should be told about a change of ownership or an extension to the system.
• Assuming exports earn your supply price. They do not. Export rates are set by each licensee and are usually well below what you pay for imported power.

Keep a folder with the installation certificate, commissioning sheet, DNO approval, export MPAN and SEG confirmation. It will save time if you ever switch licensee, sell the site or make a claim.

Next steps

• Confirm that your system and certificates meet Ofgem's eligibility rules.
• Check you have an export meter and MPAN.
• Compare at least three licensees' current tariffs, then apply.