Smart Export Guarantee: earn from your solar panels

The Smart Export Guarantee (SEG) allows UK homeowners with renewable energy systems to earn money by selling surplus electricity back to the National Grid. This government-backed scheme, introduced in January 2020, replaced the older Feed-in Tariff (FiT) and ensures that licensed electricity suppliers pay you for every unit of clean energy you export. It transforms your solar panels, or other eligible low-carbon generators, into an active income stream, putting you in control of your home's energy output.

What is the Smart Export Guarantee (SEG)?

The SEG is a UK government initiative that mandates larger electricity suppliers to pay customers for the renewable electricity they generate and export to the grid. It came into effect on 1 January 2020, creating a market-led approach for payments to small-scale, low-carbon generators. This means if you have solar panels, a wind turbine, or another eligible system, you can get paid for the electricity your home doesn't use.

SEG vs Feed-in Tariff (FIT): key differences

The SEG replaced the Feed-in Tariff (FiT) scheme, which closed to new applications at the end of March 2019. While both schemes reward homeowners for generating renewable electricity, their approaches differ significantly. FiT offered both generation payments (for all electricity produced) and export payments (for electricity sent to the grid), often at fixed rates. SEG, however, focuses solely on export payments, with suppliers setting their own rates, provided they are above zero. Crucially, the SEG is for new renewable energy installations or those not already receiving FiT payments; it does not replace FiT for existing recipients.

How the SEG scheme works

Under the SEG, licensed electricity suppliers with more than 50,000 domestic electricity customers must offer at least one SEG tariff. These tariffs pay you for each kilowatt-hour (kWh) of electricity you export. Your smart meter records how much electricity your system sends to the grid, typically in half-hourly readings. Your chosen SEG licensee then uses these readings to calculate your payments, which are usually paid quarterly or monthly. The scheme is regulated by Ofgem, the UK's energy regulator, ensuring transparency and fair practices.

Are you eligible for the SEG?

To participate in the SEG, your renewable energy system and metering setup must meet specific criteria. Meeting these requirements ensures you can accurately measure and be paid for your exported electricity.

System requirements and capacity limits

To be eligible for the SEG, your renewable energy system must be one of the following:

• Solar photovoltaic (PV)
• Wind
• Hydro
• Micro combined heat and power (CHP)
• Anaerobic digestion

The total installed capacity of your system must be up to 5 megawatts (MW) for most technologies, or up to 50 kilowatts (kW) for micro combined heat and power. Your installer must also be certified under the Microgeneration Certification Scheme (MCS) or an equivalent scheme, ensuring your installation meets industry standards.

The role of your smart meter

A smart meter capable of providing half-hourly export readings is typically required for SEG participation. This meter accurately measures the electricity you send back to the grid, allowing your supplier to calculate your payments precisely. If you don't have a smart meter, your chosen SEG licensee can usually arrange for one to be installed, as it's a prerequisite for most tariffs. Without accurate export data, suppliers cannot process your SEG payments. Understanding your smart meter and how to read it is key to managing your energy exports effectively.

Finding the best SEG tariff

With multiple suppliers offering SEG tariffs, comparing your options is key to maximising your earnings. Not all tariffs are created equal, and what works best for one household might not be ideal for another.

Comparing rates and terms from different suppliers

All licensed electricity suppliers with more than 50,000 domestic electricity customers are mandated to offer SEG tariffs, and the rate offered must be above zero. However, the exact rates and terms vary significantly. Some suppliers offer a flat rate per kWh, while others might have variable rates that change based on the time of day, rewarding you more for exporting during peak demand periods. It's worth noting that some of the best solar export tariffs in the UK might require you to be an electricity import customer with the same supplier, while others are open to all.

Factors influencing tariff choice

When comparing SEG tariffs, look beyond just the pence-per-kWh rate. Consider:

• Payment frequency: How often will you receive payments (e.g., monthly, quarterly)?
• Contract length: Are you tied into a long-term contract, or can you switch easily?
• Import customer requirement: Do you need to buy your electricity from the same supplier to get their best export rate?
• Tariff structure: Is it a flat rate, or does it offer higher rates for exporting at specific times? Time-of-use tariffs can be beneficial if you can store and export energy when rates are highest.
• Customer service: How easy is it to manage your account and track your exports?

How to apply for the Smart Export Guarantee

Applying for the SEG is a straightforward process, but it requires a few steps to ensure everything is in order. Being prepared can make the application smoother.

Step-by-step application process

1. Check eligibility: Ensure your renewable energy system and smart meter meet the SEG criteria.
2. Choose a supplier: Research and compare SEG tariffs to find the best fit for your needs.
3. Gather documentation: You'll typically need proof of your system's installation (e.g., MCS certificate), details of your smart meter, and your MPAN (Meter Point Administration Number).
4. Apply online or by phone: Contact your chosen SEG licensee and follow their application process. This often involves filling out a form and submitting your documentation.
5. Confirmation: Once approved, your supplier will confirm your SEG contract and the start date for payments.

What to expect after applying

After you've applied and been accepted, your SEG payments will begin according to your tariff's terms. You'll typically receive regular statements detailing your exported electricity and the corresponding payment. Keep an eye on your smart meter readings and your statements to ensure accuracy. If you have any questions or discrepancies, contact your SEG licensee's customer service.

Maximising your solar export earnings

Earning from your solar panels isn't just about signing up for the SEG; it's about optimising how you generate, use, and export your electricity. With the average UK home using around 2,500 kWh of electricity per year1, every kWh you can export rather than import contributes to your earnings.

Optimising your energy usage

The more electricity you export, the more you earn. To maximise your exports, aim to use your generated electricity efficiently within your home first, and then export any surplus.

• Shift consumption: Use high-energy appliances like washing machines, dishwashers, and tumble dryers during daylight hours when your solar panels are generating the most electricity.
• Energy-efficient appliances: Upgrade to more efficient appliances to reduce your overall consumption, leaving more energy available for export. You can also implement general energy efficiency tips to further reduce your household's energy demand.
• Monitor usage: Use your smart meter data or a home energy management system to understand your consumption patterns and identify opportunities to reduce import and increase export. Consider a smart meter installation if you don't already have one.

The benefits of battery storage

Installing a home battery storage system can significantly boost your SEG earnings. Instead of exporting surplus electricity immediately at potentially lower rates, a battery allows you to store it. You can then use this stored energy when your panels aren't generating (e.g., at night) or export it during peak demand periods when SEG tariffs might offer higher rates. This flexibility gives you greater control over your energy, turning your solar panels into an even more valuable asset.

Managing your energy should be simple and rewarding. Fuse Energy offers clear pricing, real-time usage data through our app, and 24/7 human customer support to help you make the most of your renewable energy system. Switching is quick and easy, allowing you to take control of your energy bills and export earnings.