If you have solar panels and you’re not signed up to a Smart Export Guarantee tariff, you’re giving away electricity for free. Here is how the SEG works, which suppliers pay most, and how to switch.
How the SEG Works
The Smart Export Guarantee replaced the Feed-in Tariff (FiT) for new installations from January 2020. Under the SEG:
- Energy suppliers with 150,000+ customers must offer at least one SEG tariff
- Rates are set by each supplier — no government-mandated minimum
- You register your installation with your chosen SEG provider
- Your smart meter records export readings
- You receive payment per kWh exported (monthly or quarterly)
You can use a different supplier for your SEG payments than for your household electricity import. This means you can keep your existing energy supplier and still pick the best SEG rate on the market.
SEG Tariff Comparison — May 2026
| Supplier | Tariff name | Export rate | Rate type | Notes |
|---|---|---|---|---|
| Octopus Energy | Outgoing Octopus | Up to 15p/kWh | Fixed (varies by property) | Best available fixed rate |
| Ovo Energy | Drive + Export | 5p/kWh | Fixed | Standard SEG |
| E.ON Next | Smart Export | 5p/kWh | Fixed | Available to all |
| British Gas | Export Lite | 5p/kWh | Fixed | Standard |
| EDF Energy | Export | 5p/kWh | Fixed | Standard |
| Bulb (Octopus) | — | Via Octopus | — | Merged into Octopus |
| Octopus (Agile Export) | Agile Outgoing | Market-linked | Variable | Can earn 15–30p+ at peak times |
Rates accurate at May 2026. SEG rates change — always check directly with the supplier before applying.
Octopus Outgoing — Best Fixed Rate
Octopus Outgoing currently offers the highest fixed SEG rate available. The exact rate varies by region and meter type but typically ranges from 6p to 15p/kWh for a fixed arrangement. Registration is through the Octopus website; you do not need to be an Octopus customer for your import.
Octopus Agile Export — Best for Flexible Households
Octopus Agile Export pays the half-hourly wholesale electricity rate for your exports. During peak demand periods (typically 4–7pm on weekday evenings), export rates can reach 20–40p/kWh. During overnight periods, rates are lower. This tariff rewards households that can batch their export-heavy activity to high-price periods — for example by discharging a battery during the evening peak.
Who Can Register for the SEG?
You can register for SEG if:
- You have an eligible renewable installation (solar PV, small wind, micro-hydro, anaerobic digestion up to 5MW; micro-CHP up to 50kW)
- Your installation is certified by MCS (Microgeneration Certification Scheme) or equivalent
- You have a smart meter that can record half-hourly export data
- Your system capacity is 5MW or below
Battery storage systems are eligible for SEG only if the battery cannot be charged from the grid (i.e., it only stores solar energy). A grid-charging battery cannot receive SEG payments for electricity discharged.
How to Register
- Check your MCS certificate — provided by your installer at completion
- Choose a SEG provider — compare rates (Ofgem has a comparison list)
- Contact the SEG provider — apply via their website or by phone
- Provide your MCS certificate number, MPAN (electricity meter number), and smart meter details
- Export reading taken — your SEG provider sets up the export meter read
- Payments begin — usually within 1–2 billing cycles
Maximising Your SEG Income
Your export income depends on how much you export. Strategies to increase exports:
Use less during peak solar hours: Schedule dishwasher, washing machine, and EV charging during daylight. The more you use during the day, the less you export.
Add battery storage: A battery lets you store daytime solar for evening use, reducing imports — but also reduces exports (and therefore SEG income). The tradeoff depends on your import tariff vs SEG rate.
Use Agile Export: If you have a battery and can discharge it at peak export-price times, Agile Export can significantly increase earnings. A 5kWh battery discharging at 30p/kWh earns £1.50 per day in peak windows.
Register with the highest-rate provider: The difference between 5p and 15p/kWh on 1,500 kWh of annual exports is £150 per year. Switching SEG provider costs nothing and takes about 30 minutes.
SEG vs Old Feed-in Tariff
| Feature | Feed-in Tariff (pre-2019) | Smart Export Guarantee (post-2020) |
|---|---|---|
| Generation payment | Yes (paid per kWh generated) | No |
| Export payment | Yes (deemed 50% of generation) | Yes (metered actual exports) |
| Government-set rate | Yes | No — supplier-set |
| Fixed term | 20 years | Usually annual or rolling |
| Available to new installations | No (closed 2019) | Yes |
If you have a pre-2019 installation on the Feed-in Tariff, you continue to receive FiT payments. You cannot also receive SEG payments for the same installation.
How to Switch SEG Provider
Unlike energy switching, switching SEG provider is straightforward and free. You are not locked in:
- Check available rates — Ofgem maintains a comparison table of SEG providers and rates at ofgem.gov.uk. Cornwall Insight and The Eco Experts also publish regularly updated SEG comparison tables
- Apply to the new provider — most have an online application; you will need your MCS certificate number, MPAN, and smart meter export MPAN
- Notify the old provider — most allow termination with 30 days’ notice or less; check your contract
- Confirm the export meter read — the new provider takes over reading from a specific date
Switching to a better SEG rate from 5p to 15p/kWh on 1,500 kWh of annual exports saves £150/year at no cost. Review rates annually — the highest-paying tariffs change as supplier offerings evolve.
Tax Treatment of SEG Income
For most homeowners, SEG income is not taxable. HMRC’s position is:
- Owner-occupiers: SEG payments are generally exempt from income tax under HMRC’s treatment of domestic microgeneration income, provided the system is not used for a business purpose
- Landlords: If the installation is at a rental property, SEG income may be taxable as part of your property rental income. Take advice from an accountant if you are a landlord with solar panels on a rented property
- Businesses: If the system is installed at business premises, SEG income is taxable business income
Keep annual payment records from your SEG provider for your tax records regardless.
Related Guides
- Smart Export Guarantee — Full Guide — eligibility, registration, and switching in detail
- Solar Panels UK — Costs, Savings and Grants — complete solar guide
- Is Solar Worth It UK? — total ROI including SEG income
- Green Technology hub — full green home technology hub