The Smart Export Guarantee, usually shortened to SEG, allows an eligible UK business to receive payment for low-carbon electricity that it generates but does not use and exports to the grid.
For most businesses, this means selling surplus electricity from commercial solar panels.
However, the scheme also covers eligible wind, hydro, anaerobic digestion and micro-combined heat and power installations.
SEG is not a grant and it does not pay for every unit generated. It pays only for electricity that crosses the site boundary and is recorded as an export. The business must apply to a participating electricity supplier, have suitable certification and use a meter capable of recording exports in half-hourly periods.
The scheme can provide a useful additional income stream, but the highest advertised Smart Export Guarantee rate is not automatically the best overall deal. Businesses should compare the export income with their import electricity costs, standing charges, contract terms, system size limits, payment frequency, battery rules and any requirement to buy electricity or equipment from the same company.
The Smart Export Guarantee at a glance
| Question | Short answer |
|---|---|
| What does SEG stand for? | Smart Export Guarantee |
| What does SEG pay for? | Eligible low-carbon electricity actually exported to the grid |
| Does it pay for electricity used on site? | No, although using self-generated electricity can reduce imported electricity costs |
| When did SEG begin? | 1 January 2020 |
| Where is it available? | England, Scotland and Wales; not Northern Ireland |
| Can a business claim? | Yes, if the installation and metering meet the rules |
| Which technologies qualify? | Solar PV, onshore wind, hydro, anaerobic digestion and micro-CHP |
| What is the maximum size? | 5MW total installed capacity, except micro-CHP, which is limited to 50kW |
| Is there a government-set rate? | No; each SEG supplier sets its own rates and terms |
| What is the statutory minimum rate? | More than 0p/kWh at all times |
| Is a smart meter compulsory? | The meter must record half-hourly exports; this can be a suitable smart, AMR, half-hourly or separate export meter |
| Is an export MPAN required? | Yes |
| Must import and export use one supplier? | No, although some higher rates are tied to the supplier’s import tariff |
| Can SEG and FIT be combined? | FIT generation payments can continue, but FIT export and SEG cannot be paid for the same installation at the same time |
| Can a battery qualify? | Potentially, but the supplier does not have to pay for electricity that was charged from an ineligible source |
| Are payments automatic? | No; the generator must apply and agree an export contract |
Ofgem describes SEG as a government-backed route to market for small-scale low-carbon generators in Great Britain. The Department for Energy Security and Net Zero sets the policy, while Ofgem administers parts of the scheme.
What is the Smart Export Guarantee?
The Smart Export Guarantee requires participating licensed electricity suppliers, known as SEG licensees, to offer at least one compliant export tariff to eligible generators.
A tariff must pay more than zero for each eligible kilowatt hour exported, but there is no government-guaranteed price. The supplier decides:
- the export rate
- whether the rate is fixed, variable or time based
- the contract length
- how and when payments are made
- the evidence required
- whether additional, higher-paying tariffs have extra conditions
- how batteries and mixed generation sources are treated.
This market-led design means Smart Export Guarantee rates can vary substantially. One supplier may offer a relatively low tariff that is open to any eligible generator, while another may advertise a much higher rate only for customers who also buy electricity, solar panels or battery storage from it.
The SEG supplier does not need to be the company that supplies the business’s imported electricity. A company can therefore have:
- one supplier for imported electricity
- another supplier for SEG export payments
- a third supplier for gas.
However, splitting import and export between suppliers may prevent the business from obtaining a higher tied export tariff. The right comparison is the combined annual financial outcome, not the export rate in isolation.
How does the Smart Export Guarantee work?
In a typical commercial solar arrangement, the process is:
- Solar panels generate electricity at the business premises.
- The business uses as much of that electricity as it needs at the time.
- Any surplus passes through the export meter and into the local distribution network.
- The meter records the exported amount in half-hourly periods.
- The registered SEG supplier receives or validates the export readings.
- The supplier multiplies the eligible exported kilowatt hours by the applicable export rate.
- The supplier pays the business or credits the agreed account.
The basic calculation is:
SEG income = exported electricity in kWh × export rate in pounds per kWh
If a business exports 20,000kWh and receives 8.5p/kWh:
20,000 × £0.085 = £1,700
This payment is separate from the saving made by using generated electricity on site. If the business produces 50,000kWh, consumes 30,000kWh itself and exports 20,000kWh, only the 20,000kWh is eligible for SEG. The 30,000kWh may still be financially valuable because it replaces electricity that would otherwise have been bought from the grid.
Is SEG the same as a solar export tariff?
The terms are often used interchangeably, but they do not always mean exactly the same thing.
A Smart Export Guarantee tariff is an export tariff offered within the statutory SEG framework. It must comply with the scheme’s rules.
A solar export tariff is a broader description of any arrangement that pays for exported solar electricity. It may be:
- a compliant SEG tariff
- an additional supplier export product
- a combined import and export tariff
- a time-of-use export tariff
- a commercial export Power Purchase Agreement
- another negotiated route-to-market contract.
Businesses should therefore ask whether a quoted “export tariff” is the supplier’s universally available SEG tariff, a conditional SEG product or a separate commercial contract.
Latest Smart Export Guarantee market data
The latest completed reporting period is SEG Year 5, covering 1 April 2024 to 31 March 2025. Ofgem’s Year 5 annual report, published in December 2025, shows how quickly the market had expanded:
| SEG Year 5 measure | Ofgem figure |
|---|---|
| Tariffs open during the year | 50 |
| SEG licensees offering those tariffs | 11 |
| Tied tariffs | 29 |
| Untied tariffs | 21 |
| Installations registered at year end | 270,395 |
| Combined registered capacity | 1,585MW |
| Eligible electricity exported | 443.1GWh |
| Payments made | £56.97 million |
| Average rate offered across tariffs | 10.80p/kWh |
| Average tied rate offered | 15.39p/kWh |
| Average untied rate offered | 4.47p/kWh |
| Average rate paid across installations | 14.04p/kWh |
| Average tied rate paid | 15.4p/kWh |
| Average untied rate paid | 7.3p/kWh |
“Tied” means the tariff had an extra condition, such as using the same company for imported electricity or buying specified equipment. “Untied” means it was available without that additional relationship.
The figures demonstrate why a simple list of headline rates can be misleading. Tied rates were much higher on average, but accepting one can change the cost of imported electricity or require a particular installation package.
Current Smart Export Guarantee rates for businesses
The following table contains publicly advertised examples checked on 25 July 2026. It focuses on products that suppliers present as suitable for businesses or potentially available to eligible commercial generators.
Rates and eligibility can change without much notice. A published rate is not a guaranteed quotation, and some suppliers apply additional meter, technology, capacity, import-supply or installation conditions.
| Supplier and tariff | Advertised export rate | Type | Main published conditions |
|---|---|---|---|
| EDF Export 12M Small Business | 15p/kWh | Fixed for one year | Existing EDF small-business electricity customers; no exit fee |
| ScottishPower SmartGen Premium Plus | 15p/kWh | Variable | ScottishPower import customer; solar panels and/or battery installed by ScottishPower |
| ScottishPower SmartGen Premium | 12p/kWh | Variable | ScottishPower supplies imported electricity at the installation address |
| E.ON Next Export Business v1 | 8.5p/kWh | Fixed for 12 months | SME or commercial customer; qualifying renewable system up to 5MW; smart export meter and half-hourly data consent |
| ScottishPower SmartGen | 6p/kWh | Variable | Standard published SEG eligibility; no same-supplier import condition stated |
| E.ON Next Flex Export v1 | 6p/kWh | Variable | Qualifying renewable system up to 5MW; available to new and existing customers |
| EDF SEG Export Variable Value | 5.6p/kWh | Variable | Existing EDF small-business electricity customer |
| Octopus SEG | 4.1p/kWh | Flat rate | Import electricity can remain with another supplier; Octopus separately confirms business availability |
| EDF SEG Export Variable | 3p/kWh | Variable | Available whether or not EDF supplies the business’s electricity |
| Utilita SEG | 3p/kWh | Published SEG rate | No requirement to buy imported electricity from Utilita; confirm commercial meter acceptance before applying |
This is a comparison of advertised export rates, not a whole-market ranking or a recommendation. The current Ofgem SEG licensee list includes other mandatory and voluntary suppliers, and every licensee must make its required compliant tariff available to eligible generators.
Some suppliers also have commercial export products outside their basic untied SEG offer. For example, Octopus markets Panel Power as a combined business import and export product. Its online page currently contains conflicting references to 12p/kWh and 8p/kWh, so a business should obtain the current rate, capacity limit and complete import quotation in writing rather than relying on either figure.
What is the best SEG tariff?
The best Smart Export Guarantee tariff is the one producing the strongest total financial result for the business while fitting its meter, generator, risk tolerance and contract plans.
Compare at least these points:
| Comparison point | Why it matters |
|---|---|
| Export unit rate | Determines income for each eligible kWh exported |
| Fixed or variable | A fixed rate gives more certainty; a variable rate can rise or fall |
| Untied or tied | A tied tariff may pay more but affect import or installation costs |
| Import unit rate | A higher import price can outweigh a better export rate |
| Standing charge | Matters particularly where the import tariff must also move |
| Generator capacity limit | Some products accept less than the SEG maximum of 5MW |
| Eligible technology | An enhanced product may cover solar only even though the basic SEG scheme covers five technologies |
| Battery treatment | Grid-charged exports may be excluded or require extra metering |
| Payment frequency | Monthly, quarterly and annual arrangements affect cash flow |
| Contract term | Check the initial term, renewal rate and what happens at expiry |
| Exit rights | Check fees, notice periods and any effect on the import contract |
| Export MPAN support | Some suppliers obtain it; others may require more action from the generator |
| VAT and self-billing | Essential for correct invoices, payments and VAT returns |
| Environmental attributes | Check whether REGOs or other rights transfer to the supplier |
| Service standard | Delayed registration or missing readings can interrupt revenue |
An untied tariff can be better even when its export rate is lower. For example, moving the import supply to unlock a higher export rate could increase the price paid on a much larger volume of imported electricity.
Smart Export Guarantee calculator: how much can a business earn?
Income depends on four variables:
- annual generation;
- the proportion used on site;
- the amount the network allows the installation to export; and
- the SEG rate.
The system’s headline capacity does not reveal its SEG income. Two businesses with identical 100kWp solar arrays can export very different amounts if one operates seven days a week and consumes most generation, while the other closes at weekends and exports a large surplus.
Worked example: a 50kWp commercial solar system
Assume:
- annual solar generation: 45,000kWh
- electricity used on site: 70%, or 31,500kWh
- electricity exported: 30%, or 13,500kWh
| Export rate | Annual SEG income |
|---|---|
| 3p/kWh | £405.00 |
| 4.1p/kWh | £553.50 |
| 6p/kWh | £810.00 |
| 8.5p/kWh | £1,147.50 |
| 12p/kWh | £1,620.00 |
| 15p/kWh | £2,025.00 |
For this example, every additional 1p/kWh of export rate is worth £135 a year. The difference between 4.1p/kWh and 15p/kWh is £1,471.50 a year.
Now assume the business imports 100,000kWh annually. If moving supplier to obtain the 15p export rate makes imported electricity 1.5p/kWh more expensive, the import cost rises by £1,500 a year. That would be slightly more than the extra export income compared with the 4.1p tariff.
This is why businesses should model both sides of the meter.
Is using solar electricity better than exporting it?
Frequently, yes. A unit used on site can avoid buying a unit at the business’s marginal import cost, whereas exporting it earns only the export rate.
For example, if the avoidable import cost is 24p/kWh and the SEG rate is 8.5p/kWh:
- using 1kWh on site may avoid up to 24p of cost
- exporting 1kWh earns 8.5p.
The real comparison is more complicated because not every bill component varies directly with consumption. Standing charges remain payable, VAT may be recoverable and network or capacity charges can behave differently. Nevertheless, maximising sensible self-consumption is often more valuable than maximising exports.
Possible measures include:
- running refrigeration, pumps, compressors or production equipment during solar hours
- scheduling electric-vehicle charging for the middle of the day
- pre-heating water or thermal stores when generation is high
- using energy-management controls
- adding a correctly sized battery
- coordinating generation with flexible business processes.
Export should still be monetised whenever surplus electricity cannot be used or economically stored.
Who is eligible for the Smart Export Guarantee?
An eligible generator can be an individual, company, charity, public body, landlord, farm or other organisation, provided the installation meets the scheme rules.
The main requirements are:
- the installation is in Great Britain
- it uses an eligible technology
- it remains within the applicable total installed capacity limit
- the installation is suitably certified
- exported electricity is measured by a compliant meter
- an export MPAN exists
- the applicant is entitled to receive the export payments
- the same export is not receiving FIT export payments
- the supplier receives the required evidence and readings
The scheme is available to businesses, but an enhanced supplier tariff can impose narrower conditions. For example, a supplier may restrict a premium product to solar, installations below a particular capacity or customers buying imported electricity from it.
Which technologies qualify for SEG?
| Technology | Maximum total installed capacity | Important points |
|---|---|---|
| Solar photovoltaic panels | 5MW | The most common commercial SEG technology |
| Onshore wind | 5MW | Grid connection and export constraints may be significant |
| Hydroelectric generation | 5MW | Supplier will require suitable installation evidence |
| Anaerobic digestion | 5MW | Additional Ofgem sustainability declarations and reporting apply |
| Micro-combined heat and power | 50kW | The lower 50kW statutory limit applies |
Battery storage is not one of the five eligible generation technologies. Its treatment depends on where the stored electricity came from and the supplier’s rules.
Fossil-fuel generators, diesel standby sets and technologies outside the statutory list do not create a right to SEG payments.
What certification does a business need?
The certification rules vary by technology and capacity.
| Installation | Installation certification | Installer certification |
|---|---|---|
| Solar PV, wind or micro-CHP up to 50kW | Required | Required |
| Solar PV or wind above 50kW and up to 5MW | Required | Not expressly required by the SEG certification table |
| Hydro or anaerobic digestion up to 5MW | Required | Not expressly required by the SEG certification table |
For solar PV, wind and micro-CHP at 50kW or below, an MCS certificate is the familiar route. An equivalent scheme can also be accepted. For larger or other installations, the SEG supplier has discretion over the evidence it uses to establish that the installation is suitably certified.
The supplier may request:
- an MCS or equivalent certificate
- an electrical installation certificate
- installer accreditation
- commissioning documents
- a single-line diagram
- inverter and generator details
- DNO approval or acknowledgement
- total installed capacity evidence
- additional metering information.
Do not wait until after installation to ask what will be accepted. A business planning a larger commercial system should agree the evidence requirements with potential export buyers during design and procurement.
Do businesses need a smart meter for SEG?
Despite the scheme’s name, the legal requirement is not limited to a standard domestic-style smart meter. The export must be measured by a meter capable of taking half-hourly measurements.
Depending on the premises, this could be:
- a compatible SMETS smart meter
- an advanced or AMR meter
- an existing half-hourly commercial meter configured for export
- a separate export meter
- another compliant metering arrangement accepted by the SEG supplier
The meter must measure electricity at the point where the installation connects with the distribution network. A solar generation meter records what the panels produce; it is not necessarily the same as the export meter, which records what leaves the site.
Read our guides to business electricity meter installation and half-hourly meters for business for more detail.
What is an export MPAN?
An MPAN is a Meter Point Administration Number used to identify an electricity supply point in Great Britain.
A business that imports and exports electricity normally has two distinct registrations:
- the import MPAN, covering electricity taken from the grid
- the export MPAN, covering electricity sent to the grid.
The 13-digit export MPAN core is not normally the same number shown as the import supply number on the business’s electricity bill.
The SEG supplier will often request the export MPAN from the Distribution Network Operator, but processes vary. An application can be delayed if the DNO has no record of the generating installation or the technical documents do not match.
See our complete guide to finding and understanding an MPAN.
What does the Distribution Network Operator do?
The Distribution Network Operator, or DNO, owns and operates the regional network to which most business premises are connected.
Its role is different from the supplier’s:
- the DNO approves or records the generation connection and determines how much the site may export
- the SEG supplier registers the export MPAN, receives meter data and pays for eligible exports
- the installer designs, installs and commissions the equipment and usually manages technical applications.
Small type-tested microgeneration may use the G98 process. Generation above 16A per phase, connected at higher voltage or outside G98 generally falls under G99. The 16A threshold is approximately 3.68kW on a single-phase supply or 11.04kW across a three-phase supply. Most substantial commercial solar projects therefore require a G99 application before connection.
A DNO may:
- approve the full proposed export
- impose an export limit
- require an export-limitation scheme
- request network studies
- quote for reinforcement work
- require a different connection arrangement
SEG pays for actual metered export, not the amount the solar array could theoretically produce. Any DNO export restriction must therefore be included in the financial forecast.
Read our guide to Distribution Network Operators for regional contacts, maps and connection information. The Energy Networks Association also publishes commercial generation connection guidance.
How to apply for the Smart Export Guarantee
How to apply for the Smart Export Guarantee
- Confirm who owns the generation
Establish who owns the panels, inverter, battery and associated rights. Review the lease, roof agreement, finance agreement or Power Purchase Agreement if a third party funded the installation. The business occupying the premises is not automatically entitled to the export income.
- Confirm the technology and capacity
Record the eligible technology, commissioning date, total installed capacity, inverter capacity and any export limitation. Do not confuse kW or MW of capacity with kWh of energy.
- Complete the DNO process
Obtain the DNO’s G98 acknowledgement or G99 connection approval, as applicable. Keep the final response rather than only the application form.
- Gather certification
Locate the MCS or equivalent certificate and any electrical, commissioning, installer and equipment documentation required by the supplier.
- Check the meter
Confirm that the meter can record export in half-hourly periods and that the supplier can access or accept the readings. Larger sites may need the meter operator and data agents to be involved.
- Obtain an export MPAN
Ask whether the chosen SEG supplier will request it from the DNO. Make sure the address, meter serial number, import MPAN and generation documents all refer to the same premises.
- Check FIT status
If the installation receives FIT export payments, contact the FIT licensee and opt out of the export element before SEG begins. Do not cancel FIT generation payments unnecessarily.
- Compare tariffs
Request untied and tied options and calculate the total import-plus-export result. For a larger generator, compare SEG with a commercial export PPA.
- Complete the application
The supplier may ask for: • business and company details; • proof of identity or authority; • proof of address; • proof of installation ownership or permission; • bank details; • VAT status and VAT registration number; • a self-billing agreement; • import and export MPANs; • meter serial number and photographs; • an opening export reading; • MCS or equivalent certification; • DNO documents; • a single-line diagram; and • FIT declarations.
- Wait for written confirmation
Do not assume exports will be backdated to the installation or application date. The supplier should issue written terms confirming the rate, start date, payment process and termination rights.
- Retain the opening evidence
Photograph the meter, serial number and export register on the contract start date. Save the tariff terms, application, readings, invoices and payments in the business’s energy records.
How long does a SEG application take?
There is no single statutory onboarding time for every application. The timetable depends on:
- whether an export MPAN already exists
- DNO records
- the meter and communications
- the quality of the documents
- FIT status
- supplier checks
- battery or mixed-generation complexity
- the size of the installation
Several suppliers publish an estimated one to four weeks for the DNO to create an export MPAN, but the full process can take longer. Complex commercial metering, missing DNO approval or inconsistent installation records can add weeks.
Apply well before the expected commissioning or tariff renewal date. Electricity exported before the contract becomes effective may receive no payment.
Can a business use SEG with battery storage?
Yes, but battery exports need careful treatment.
A battery can:
- store surplus solar electricity for use later
- increase self-consumption
- discharge to the grid when an export rate is attractive
- help manage site demand
- support time-of-use or flexibility arrangements
However, a battery is storage, not an eligible SEG generation technology in its own right. If it can also charge from the grid, the export meter may record a mixture of:
- eligible renewable electricity
- electricity previously imported from the grid
- output from another ineligible generator.
Under Ofgem’s generator guidance, a SEG supplier is not obliged to pay for ineligible electricity. It may:
- pay for all recorded export
- exclude all mixed export
- require additional metering
- use an agreed estimate or apportionment
- accept only a defined operating configuration.
Expect to provide a single-line diagram and details of how the battery is charged and controlled. Obtain written confirmation before using grid charging and export arbitrage.
Can SEG be combined with the Feed-in Tariff?
An installation cannot receive both FIT export payments and SEG payments for the same exported electricity.
It can, however, continue to receive FIT generation payments while moving the export element to SEG.
| Feature | Feed-in Tariff | Smart Export Guarantee |
|---|---|---|
| Status for new applicants | Closed from 1 April 2019 | Open to eligible generators |
| What it can pay for | Generation and export elements | Actual eligible export only |
| Rate setting | Government scheme rates | Supplier sets rate and terms |
| Export measurement | Some installations use deemed export | Based on export meter readings |
| Generation payment retained after moving export? | Yes | Not applicable |
| Can FIT export and SEG run together? | No | No |
A FIT generator can change its decision to opt in or out of FIT export payments no more than once in a 12-month period. Before switching, compare:
- the current FIT export income
- deemed export versus actual metered export
- the SEG rate
- the actual proportion exported
- meter and administration requirements
- whether the SEG tariff is fixed or variable.
Do not opt out solely because the SEG pence-per-kWh figure is higher. A deemed FIT export calculation can sometimes pay for more electricity than the site actually exports.
Can SEG be combined with grants or other schemes?
Receiving a government grant towards an eligible installation does not by itself prevent SEG payments.
Ofgem’s guidance also confirms that eligible generators can combine SEG with:
- FIT generation payments, after opting out of FIT export
- legacy Renewable Heat Incentive payments where the separate conditions are met
- Renewable Energy Guarantees of Origin, or REGOs.
The same exported electricity cannot be sold twice under conflicting export arrangements. Businesses should also check whether a grant, finance agreement, PPA or lease assigns the export revenue or environmental attributes to another party.
SEG versus a Power Purchase Agreement
A commercial generator may be able to choose between SEG and an export Power Purchase Agreement, usually called an export PPA.
| Feature | Smart Export Guarantee | Export PPA |
|---|---|---|
| Statutory capacity limit | Up to 5MW, or 50kW for micro-CHP | Not limited by SEG rules |
| Price | Published or supplier-set tariff | Commercially negotiated or market linked |
| Complexity | Generally simpler | Usually more complex |
| Contract term | Supplier decides; often variable or one year | Can be short, medium or long term |
| Settlement | Metered export through SEG process | Half-hourly commercial settlement and agreed route to market |
| Technology | Five defined SEG technologies | Depends on buyer and contract |
| Forecasting and imbalance | Usually handled within simple supplier terms | May influence price, fees and risk allocation |
| Environmental attributes | Check tariff terms | REGOs and other rights are negotiated |
| Best suited to | Smaller or straightforward eligible generators | Larger or commercially sophisticated export portfolios |
An installation does not have to exceed 5MW before considering a PPA. Some export buyers work with smaller commercial assets, and a negotiated arrangement may provide a better price or longer-term certainty. Conversely, SEG may remain attractive where simplicity and short commitments matter more.
Do not confuse an export PPA with an on-site solar PPA:
- under an export PPA, the generator sells electricity leaving the site
- under an on-site solar PPA, a third party usually owns the panels and sells electricity generated behind the meter to the occupying business
- under a corporate PPA, a business may buy electricity associated with an off-site renewable generator.
Where a third party owns the on-site system, the contract normally decides who receives export income. Read our guide to corporate and on-site Power Purchase Agreements.
Are Smart Export Guarantee payments taxable?
For a business, export payments received in a business capacity are normally business receipts and should be included in the accounts. HMRC’s business income guidance on electricity export tariffs states that an export tariff received in a business capacity is a business receipt under normal principles.
The eventual Income Tax or Corporation Tax effect depends on the business structure, deductible costs, allowances and overall taxable profit. The gross SEG rate should not be treated as an after-tax return.
Keep:
- export contracts
- meter data and readings
- payment statements
- invoices or self-billed invoices
- bank records
- VAT records
- evidence of system ownership and expenses.
Obtain advice from an accountant on the treatment applicable to the business.
Is VAT charged on SEG payments?
Exported electricity is a supply made by the generator to the purchasing electricity company. HMRC’s VAT guidance on exported electricity treats export payments as consideration for a supply where electricity is supplied by a taxable person in the course of business.
For a VAT-registered business, the supplier will commonly add VAT to the export payment through a self-billing arrangement. E.ON Next, for example, tells VAT-registered business applicants to complete a self-billing form.
Under HMRC’s self-billing rules, the parties must agree to self-billing and the buyer prepares the invoice on the seller’s behalf.
A VAT-registered exporter should:
- declare its VAT status accurately
- provide the correct VAT registration number
- sign and retain the self-billing agreement
- check that each invoice contains the correct business details, net value and VAT
- account for the output VAT correctly
- notify the SEG supplier of a change in VAT status
- remember that VAT collected is not additional business profit.
VAT circumstances can vary, so obtain professional advice rather than relying only on a supplier application form.
Who receives SEG payments at rented premises?
Occupation, electricity-bill liability and generator ownership can belong to different parties.
At a rented commercial property, possible claimants include:
- the landlord
- the tenant;
- a solar developer
- a finance company
- a managing agent
- another entity named in a roof lease or PPA.
The applicant must be entitled to receive payment and may need the owner’s permission. Review:
- the property lease
- solar ownership documents
- landlord and tenant obligations
- roof-rights agreements
- finance or hire agreements
- service-charge provisions
- the import electricity contract
- any PPA.
When a property is sold or a tenant changes, notify the SEG supplier, record a dated closing export reading and arrange a new contract for the new beneficiary. SEG contracts do not necessarily transfer automatically with the premises.
Can multi-site businesses use SEG?
Yes. Each eligible installation and export point will normally require appropriate registration, evidence, metering and an export MPAN.
A multi-site business should maintain a register containing:
| Record | Example |
|---|---|
| Site address | Warehouse 3, Bristol |
| Technology | Solar PV |
| Total installed capacity | 180kWp |
| DNO | National Grid Electricity Distribution |
| DNO approval reference | Site-specific reference |
| Import MPAN | Site import identifier |
| Export MPAN | Site export identifier |
| Meter serial number | Export-capable meter |
| SEG supplier | Named licensee |
| Tariff and rate | Product and p/kWh |
| Contract start and end | Dates |
| Payment cycle | Monthly or quarterly |
| VAT status | Declaration recorded |
| Ownership | Company-owned or third party |
Aggregating the forecast export portfolio may also make a commercial PPA or managed export service worth considering.
Smart Export Guarantee suppliers
Suppliers with at least 150,000 domestic electricity customers are mandatory SEG licensees. Smaller licensed suppliers can participate voluntarily, but voluntary licensees take on the same SEG obligations while participating.
For the seventh SEG year, from 1 April 2026 to 31 March 2027, Ofgem lists:
| Mandatory SEG licensees | Voluntary SEG licensees |
|---|---|
| British Gas Trading Limited | Pozitive Energy Ltd |
| E (Gas and Electricity) Ltd | Ruby Electricity Ltd |
| E.ON Next Energy Limited | Smart Pay Energy Ltd |
| EDF Energy Customers Limited | Voltx Power Ltd |
| Electricity Plus Supply Limited, trading as Utility Warehouse | |
| Foxglove Energy Supply Limited | |
| Fuse Energy Supply Limited | |
| Octopus Energy Limited | |
| OVO Electricity Ltd | |
| ScottishPower Energy Retail Limited | |
| So Energy Trading Limited | |
| Utilita Energy Limited |
The list shows regulatory status, not which supplier offers the best commercial tariff. Check the supplier’s current terms and ask specifically for the tariff open to any eligible generator if a premium product is unsuitable.
Fixed, variable and time-of-use SEG tariffs
Fixed export tariff
A fixed tariff pays the same rate per exported kWh for the stated term. It makes income easier to forecast but may become uncompetitive if market rates rise.
Variable export tariff
A variable tariff can change after notice under the contract. The supplier may review it periodically or link it to an external factor.
Time-of-use export tariff
A time-of-use tariff pays different rates depending on when the electricity is exported. A battery or controllable generator may be able to target high-value periods, but the business must include:
- battery losses
- degradation
- charging cost
- control-system fees
- import-tariff rules
- eligible-source restrictions
- the risk of rates changing
Whatever the structure, a compliant SEG tariff must remain above zero. A supplier cannot make the generator pay for an exported unit under its mandatory SEG tariff.
What should a business check in a SEG contract?
Before accepting, read the written terms for:
- the exact pence-per-kWh rate
- whether the quoted price excludes VAT
- the start and end dates
- fixed, variable or time-of-use pricing
- price-change notice
- payment frequency and method
- meter-reading responsibilities
- corrections for missing or disputed data
- technology and capacity restrictions
- battery and grid-charging rules
- treatment of mixed eligible and ineligible generation
- any DNO export limit
- import-supply or installation tie-ins
- exit fees and notice
- renewal or fallback rate
- ownership changes
- site moves and meter exchanges
- REGOs and other environmental attributes
- self-billing
- complaints
- insolvency
- switching to another export supplier
Ofgem warns that if an SEG supplier becomes insolvent, a new supplier is not responsible for unpaid export under the old contract or for electricity exported during a gap before the new agreement starts. Prompt switching and good records matter.
How to switch SEG supplier
A business can switch export supplier without moving its import supply, unless its current or new tariff is tied.
Use this process:
- compare the full new terms;
- check exit notice and any linked import consequences;
- agree the intended start date with the new supplier;
- notify the old supplier;
- take a dated closing export reading and photograph;
- provide the same reading as the new opening evidence where requested;
- retain both contracts and correspondence;
- check the final payment; and
- verify that the new supplier is receiving half-hourly data.
Avoid leaving a gap between contracts because later payments are not normally backdated over an uncontracted period.
What happens if the export meter is faulty?
Tell the SEG supplier and the relevant meter provider immediately.
Retain:
- photographs of the display and error message
- dates and times
- historic half-hourly data
- inverter and generation records
- previous readings
- meter exchange documents
- complaint references.
The supplier is not generally obliged to make SEG payments until it has actual export readings, although its contract may describe how missing data, manual readings or corrections are handled.
How to complain about an SEG supplier
Complain to the SEG supplier first and follow its published procedure. State:
- the export MPAN
- installation address
- tariff and contract dates
- disputed period
- meter readings and photographs
- expected calculation
- payments received
- supporting correspondence
- the remedy requested.
Ofgem’s SEG generator guidance says a complaint may be referred to the Energy Ombudsman if no satisfactory solution has been agreed after eight weeks. A deadlock letter may allow earlier escalation, subject to the Ombudsman accepting the business and dispute within its remit. Our guide explains deadlock letters and business energy complaints.
Common Smart Export Guarantee mistakes
- Comparing domestic rates with business tariffs: Many of the highest rates in consumer tables are restricted to domestic accounts, small systems or supplier-installed equipment. Check commercial eligibility in writing.
- Confusing generation with export: SEG pays for metered export, not total panel output. Financial forecasts must include the site’s consumption profile and DNO export limit.
- Applying after export starts: Payments are not automatic. Unregistered exports can leave the site without earning SEG income.
- Using the import MPAN: The export MPAN is a separate identifier. Supplying the wrong number can delay registration.
- Missing DNO evidence: An installer’s submitted form is not the same as the DNO’s approval or acknowledgement.
- Losing certification: Keep the MCS or equivalent certificate, commissioning pack and ownership evidence for the installation’s life.
- Receiving FIT export simultaneously: SEG and FIT export cannot both pay for the same installation at the same time.
- Ignoring the import tariff: A tied export tariff can be poor value if it makes a much larger volume of imported electricity more expensive.
- Assuming all battery export qualifies: Grid-charged electricity may be excluded. Agree the treatment and metering before operating the battery.
- Forgetting VAT: Incorrect VAT status or a missing self-billing agreement can cause accounting and payment problems.
- Ignoring ownership: The occupier may not own the panels or export rights. Check leases, finance and PPAs.
- Failing to review the tariff: Export markets change. Set a reminder before any fixed term ends and review variable rates regularly.
How to maximise business solar export value
- Forecast half-hourly generation and demand. Annual totals conceal when surpluses occur.
- Prioritise valuable self-consumption. Shift appropriate loads into generation periods where avoided import costs exceed export income.
- Compare tied and untied tariffs together with import costs. Use pounds per year, not just pence per kWh.
- Model the DNO export limit. Do not value electricity the network will not accept.
- Evaluate storage properly. Include efficiency losses, degradation, controls, finance and eligible-source rules.
- Resolve metering early. Missing data and export MPAN delays can cost revenue.
- Maintain the system. Monitor faults, inverter downtime, shading, soiling and performance.
- Review VAT and tax assumptions. Build returns on net economic value, not gross cash receipts alone.
- Check PPA alternatives. Larger or predictable exporters may obtain better terms through a negotiated route to market.
- Review contracts at least annually. Rates, supplier products and business operations change.
For wider procurement, compare the export decision with the business’s electricity contract and its approach to green business energy.
Is the Smart Export Guarantee worth it for businesses?
SEG is usually worth considering whenever an eligible business exports electricity that would otherwise receive no payment.
Its importance to the investment case depends on the operating profile:
- a seven-day manufacturing site may consume nearly all solar generation, producing large bill savings but little SEG income
- an office may export heavily during summer weekends
- a school may export more during holidays
- a warehouse with low daytime demand may have a substantial surplus
- a farm may have seasonal loads and several eligible technologies
- a battery-equipped site may be able to choose between self-consumption, peak avoidance and timed export.
SEG should generally be treated as one part of the commercial renewable-energy case. The main value may still come from avoided imported electricity, followed by export income, tax treatment, finance structure and any operational benefits.
For small and straightforward generators, an SEG tariff can be the simplest route to payment. For larger sites, it should be compared with an export PPA and other flexibility opportunities.
Smart Export Guarantee application checklist
Before applying, confirm that the business has:
- an eligible generation technology
- total installed capacity within the SEG limit
- premises in England, Scotland or Wales
- proof of generation ownership or permission
- MCS or equivalent certification where applicable
- electrical and commissioning documents
- DNO approval or acknowledgement
- a meter capable of half-hourly export measurements
- an export MPAN or a supplier willing to obtain one
- no overlapping FIT export payment
- a forecast of annual metered export
- comparison of tied and untied rates
- comparison of import costs
- written battery treatment
- bank details
- confirmed VAT status
- a self-billing agreement where needed
- an opening meter reading and photograph
- written tariff terms and a confirmed start date.
FAQ
SEG stands for Smart Export Guarantee. It is the government-backed arrangement under which participating electricity suppliers pay eligible small-scale generators in Great Britain for low-carbon electricity actually exported to the grid.
Yes. A business can qualify if its installation is in England, Scotland or Wales, uses an eligible technology, remains within the 5MW limit (or 50kW for micro-CHP) and meets the certification, metering and export MPAN requirements.
There is no single national SEG rate. Supplier rates checked in July 2026 include commercial examples from 3p/kWh to 15p/kWh. Higher rates often require the same company to supply imported electricity or to have installed the solar or battery system.
The highest published rate is not always the best deal. Calculate annual export income, then include any change in import rates, standing charges, contract terms, equipment cost, capacity restrictions and payment timing.
Yes. Eligible businesses can sell surplus low-carbon electricity through SEG. Larger or more sophisticated generators may also use a commercial export PPA. The installation needs DNO approval, suitable metering and a registered export route.
No. SEG pays only for electricity exported beyond the site and recorded by the export meter. Electricity consumed on site receives no SEG payment, although it can reduce the amount bought from the grid.
The meter must be capable of measuring exports in half-hourly periods. This is often a smart meter, but a compatible AMR, half-hourly or separate export meter can also meet the requirement if accepted by the supplier.
An export MPAN is the 13-digit core identifier for the electricity export point. It is separate from the import MPAN normally found on the business’s electricity bill.
Yes. The SEG supplier does not need to supply imported electricity. However, some of the better-paying tariffs are tied to an import contract with the same company.
FIT generation payments and SEG export payments can run together. FIT export and SEG cannot pay for the same installation simultaneously, so the generator must opt out of the FIT export element first.
A battery can participate alongside eligible renewable generation, but storage alone is not an eligible generation technology. Suppliers do not have to pay SEG for electricity that was charged from the grid or another ineligible source.
Payments received in a business capacity are normally business receipts. Their Income Tax or Corporation Tax effect depends on the business structure, costs and overall taxable profit. Ask an accountant to confirm the treatment.
Exported electricity is a supply to the purchasing supplier. A VAT-registered business will commonly account for VAT through a supplier self-billing arrangement. Check whether the advertised rate excludes VAT and keep each self-billed invoice.
There is no universal statutory payment frequency. Depending on the tariff, payments may be monthly, quarterly or annual. The written contract should explain readings, validation, invoices and payment dates.
Yes. Check notice and tied-tariff consequences, coordinate closing and opening dates, photograph the final reading and avoid an uncontracted gap for which neither supplier is responsible.
No. SEG applies in Great Britain: England, Scotland and Wales. Businesses in Northern Ireland should ask their supplier or an export purchaser about the separate local arrangements.
Solar PV, onshore wind, hydro and anaerobic digestion installations can have total installed capacity up to 5MW. Micro-combined heat and power is limited to 50kW.
For solar PV, wind and micro-CHP up to 50kW, the applicant normally needs MCS or equivalent certification for the installation and installer. A supplier is not obliged to pay an uncertified installation, although equivalent accredited evidence may be accepted.
Yes, receiving a government grant does not automatically prevent an otherwise eligible installation from receiving SEG. Check the grant and finance terms to establish who owns the equipment, export revenue and environmental attributes.
Potentially. The tenant must have the right to receive export payments and may need the system owner’s permission. The lease, roof agreement, electricity contract and solar finance documents determine the position.
SEG is usually simpler and is limited to eligible installations up to 5MW. An export PPA can offer negotiated pricing and longer terms but involves more commercial, metering and contractual complexity. Larger generators should compare both.
No. The domestic energy price cap does not set Smart Export Guarantee rates. Each SEG licensee chooses its export rate and terms, subject to paying more than zero under a compliant tariff.
Businesses should not assume so. Suppliers generally require eligibility approval, an export MPAN, a valid contract and meter readings before payment begins. Obtain a written start date and apply before regular exporting starts.
No. The same eligible export cannot receive SEG payments from two licensees at once. A business can, however, use a different company for imported electricity.
Not by itself. A generation meter records total electricity produced, while SEG is based on electricity exported at the grid connection point. The business needs compliant export measurement.
The supplier is not required to offer SEG for an installation above 5MW. The generator will normally need a commercial route to market, such as an export PPA.
Final verdict
The Smart Export Guarantee gives UK businesses a practical way to earn money from eligible renewable electricity that would otherwise be exported without payment.
To qualify, the installation must be in Great Britain, use an eligible technology, remain within the statutory capacity limit, satisfy certification rules, have half-hourly-capable export metering and use a registered export MPAN.
The central commercial lesson is simple: compare total value, not just the headline SEG rate. A high tied rate can be attractive, but its benefit may disappear if the linked import tariff costs more.
Businesses should also prioritise valuable self-consumption, model any DNO export restriction, agree battery treatment, manage VAT correctly and compare an export PPA where the generator is large enough to justify it.
With the technical and contractual details organised, SEG can improve the return from commercial solar and other eligible low-carbon generation while giving surplus electricity a clear route to market.
