Everything you need to know about the Smart Export Guarantee
The Solar industry transformed from subsidised, under Feed in Tariff (FiT) , to marketised with Smart Export Guarantee (SEG). Naked Solar’s mission to improve the solar industry includes bringing 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 actually need? What about if you got paid for all that surplus solar energy? Introducing the Smart Export Guarantee.
The Smart Export Guarantee (SEG) is a government scheme introduced in 2020 that requires energy companies in the UK to pay energy generators for the excess electricity the send back to the national grid. Effectively the market’s way of saying “thank you” for the green energy you generate but don’t use. This doesn’t happen automatically, so you need to sign up to ensure you eligbility for SEG payments. In this document we’ll explain all you’ll need to claim SEG payments.
How Does SEG Work?
- Solar Panels Generate Electricity: Your Solar PV system gets to work generating 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 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 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 help verify your system meets industry standards and is safely connected to the grid. Here’s why choosing an MCS Accredited Installer is key, without this accreditation you cannot claim SEG payments.
- Ensure your smart meter is ready: You’ll need a smart meter that records your electricity exports in half-hourly intervals. Most modern installations come with this as standard, but if yours doesn’t, your first step should be to contact your electricity supplier to arrange an upgrade.
- Choose your supplier: This doesn’t have to be your current energy provider! More info on choosing the best Tariff in the paragraph below.
- Finalise and earn: Once the supplier has successfully registered your Export MPAN, they will confirm your account is live. From there, your smart meter will automatically report your export data, and you’ll receive payments directly to your bank account.

Finding the Right SEG Tariff
Since every supplier sets its own rates and terms, finding the best tariff is about looking at the big picture for your specific energy needs. You’re not required to use your home’s electricity supplier for your export tariff, so take a moment to weigh 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 time-of-use (ToU) tariffs. These allow you to sell your stored energy back to the grid during peak evening hours when electricity is most valuable (Solar Grid Trading), rather than accepting a lower, flat rate throughout the day.
Please read all the 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 longer 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.
