Everything you need to know about the Smart Export Guarantee
In 2019 the UK Solar industry progressed from subsidised, under Feed in Tariff (FiT) , to marketised with Smart Export Guarantee (SEG). Naked Solar’s mission to ‘Improve Solar for Everyone’ brings you the facts about Solar Export Guarantee so you can make the best choices for your Solar Life.
What is Smart Export Guarantee (SEG)?
You’re a solar owner, with panels on your roof. It’s a beautiful sunny day and your panels are hard at work generating electricity to power your home, lovely stuff.
But what about when your panels produce more than you need? What about if you got paid for all that surplus solar energy? On January 1st 2020 the UK Government launched the Smart Export Guarantee.
The Smart Export Guarantee (SEG) instructs energy companies in the UK to pay Solar Generators for the excess electricity they export to the grid. Effectively the market’s way of saying “thank you” for the green energy you generate and don’t use. This doesn’t happen automatically, so you need to sign up to ensure eligbility for SEG payments. We’ll explain what you need to do to claim your SEG payments.
How Does SEG Work?
- Solar Panels Generate Electricity: Your Solar PV system gets to work turning sunshine into clean energy for your home.
- Using your clean energy: Your generation powers home appliances.
- Storage or Export: Surplus energy is either stored in your solar battery if you own one or exported to the national grid (Once your battery is full, you will then also export surplus solar).
- Export Measured: A smart meter records the exact amount of energy exported to the grid.
- You get paid!: Your energy supplier pays you for the electricity you export based on your energy suppliers tariff agreement.
How Do I Apply For SEG?
To start earning from your surplus sunshine, here’s what you need to do to get started with SEG:
- Get your Paperwork ready: Before you start your application, ensure you have your MCS Certificate and your DNO G98/G99 (“proof of grid connection” letter). These are the two documents that verify your system meets industry standards and is safely connected to the grid. That’s why choosing an MCS Accredited Installer is key, without this certification you cannot claim SEG payments.
- Choose your supplier: This doesn’t have to be your current energy provider! More info on choosing the best Tariff in the paragraph below. If you don’t have a Smart Meter, your energy provider will provide one on request for free.
- Finalise and earn: Once the supplier has successfully registered your Export MPAN (Meter Point Administration Number), they will confirm your account is live. Your smart meter will automatically report your export data, and you’ll receive payments directly from your energy supplier.

Finding the Right SEG Tariff
Since every energy supplier sets their own rates and terms, finding the best tariff is the same as finding the best import tariff, just shop around the Energy market. You’re not required to use your home’s electricity supplier for your export tariff, so take a moment to weigh up your options.
Look for “premium” rates, which are often bundled for existing customers, versus “export-only” plans that offer greater flexibility.
If you have a battery storage system, prioritise suppliers that offer the most advanced Solar Grid Trading tariffs. These allow you to sell your stored energy back to the grid during peak rate hours when electricity is most valuable, rather than accepting a lower, flat all day export rate.
Please read all your Energy Suppliers contract information before choosing who to export your solar energy to. Remember that Solar Grid Trading rates will vary as often as energy prices do and choosing a Solar PV & Battery Storage system is a long term decision. Before being tempted by any special offers to entice you to choose a system because it’s linked to a current tariff, bear in mind this may lead to disappointment in a couple of years when the tariff changes.
Smart Export Guarantee - Frequently Asked Questions
- How do I apply for SEG?
Once your system is installed and you have received your MCS certificate, you need to apply directly through your chosen energy supplier. They will typically require proof of your MCS certification and may ask for your Microgeneration Certification Scheme (MCS) reference number.
- Do I get paid for the electricity I generate?
No, this is a common misconception with SEG. The SEG only pays you for the electricity you export to the grid (your solar generation that you don’t use for your home).
You “earn” by saving money on your electricity bill through self-consumption and getting paid for any excess you send back to the grid.
- Do I need a smart meter?
Yes. To be eligible for most SEG tariffs, your energy supplier will need a smart meter that can provide half-hourly readings to accurately measure your solar generation exported to the grid.
- Can I still get SEG payments if I have a battery?
Yes!
In fact, many Naked Solar customers utilise Battery Storage to maximise SEG’s benefits. With a battery, you can engage in “Solar Grid Trading“—where you use your battery to charge from the grid when electricity is cheap (off-peak) and export it to the grid when rates are high.
- I am receiving Feed-in Tariff (FiT) payments. Can I get SEG too?
It’s not possible receive both the export element of the old FiT and the SEG at the same time.
However, you can often opt out of the FiT export payments to switch to a more lucrative SEG tariff, all while continuing to receive your existing FiT generation payments.
- Can I still get SEG payments if I have a battery?
Yes!
In fact, many Naked Solar customers utilise Battery Storage to maximise SEG’s benefits. With a battery, you can engage in “Solar Grid Trading“—where you use your battery to charge from the grid when electricity is cheap (off-peak) and export it to the grid when rates are high.
- How much money can I actually earn?
There is no fixed industry rate, so your earnings depend entirely on the tariff you choose. Rates currently range from as little as 2p to over 20p per kWh. On average, a typical domestic solar system might earn between £150 and £500+ per year, depending on whether you have a battery, your household energy usage habits, and which supplier tariff you are on.
