A business guide to the Smart Export Guarantee
5 August 2025
More businesses are investing in on-site renewable energy generation, in the form of solar panels. While environmental benefits are important, financial gains are often the biggest motivation. For instance, with commercial solar panels, you can generate your own energy on-site instead of solely relying on the grid. Any unused energy can be stored in batteries or sold, creating an additional revenue stream. That’s where the Smart Export Guarantee (SEG) comes into play.
With the SEG, you can get paid for every kilowatt hour (kWh) of electricity you export to the grid. Whether you already have solar panels installed or considering the benefits and suitability for your site of having them installed, this article will explain what the SEG is, how it works, how much you can earn, and how to apply.
So, what is the Smart Export Guarantee?
The SEG is a government-backed initiative launched in the UK on 1 January 2020. Its goal is to encourage more businesses to adopt on-site renewable energy technologies, such as solar panels. As part of this initiative, some electricity suppliers must offer a Smart Export tariff. Eligible businesses get paid for any unused electricity they generate and send back to the National Grid.
For example, if your business has solar panels on its roof, these panels generate electricity throughout the day, potentially producing more than your business needs, especially during off-peak hours. Instead of wasting this extra energy, the SEG lets you export it back to the grid so you can receive payment from your energy supplier.
How the Smart Export Guarantee works
1. Generate your own electricity on-site
Start by adopting renewable energy technologies that meet SEG eligibility, such as commercial solar panels, wind turbines, hydro systems, anaerobic digestion (AD), and micro combined heat and power (micro CHP). These systems should be small-scale, with a capacity of up to 5 MW or 50 kW for micro-CHP.
2. Install a smart meter
Ensure you have a working smart meter that accurately measures how much electricity you export to the grid every 30 minutes. Most modern smart meters can do this, but check with your energy provider if you’re unsure. If you're a British Gas customer and don't have one yet, you can request a smart meter for free.
3. Get your paperwork ready
Your renewable energy system must be certified under the Microgeneration Certification Scheme (MCS) or an equivalent standard. This certification ensures your system meets recognised quality and safety standards.
4. Choose a SEG tariff
As not all energy suppliers offer a SEG tariff, you'll need to find one that suits your business and energy needs.
5. Export your electricity
Once your business is generating its own energy on-site, you can start sending any energy that’s unused back to the grid.
6. Get paid
As part of your SEG tariff, your energy supplier will then use the readings from your smart meter to calculate how much electricity you’ve exported and therefore how much to pay you.
Explore our SEG tariffs
At British Gas, we off a competitive Variable Price SEG tariff with no fixed end date or exit fees. We also pay our customers 15.1 pence per kWh, compared to just 3.02 pence per kWh for non-customers. You can expect a payment every three months directly to your bank account, and you’ll receive your payment within 28 days of providing your export meter reading.
How to apply for the Smart Export Guarantee
Signing up for the SEG is easy. Most energy suppliers offer an online application process where you can submit details about your renewable energy system. Once your application is approved, you can start exporting your excess electricity and receiving payments.
Benefits of the Smart Export Guarantee
The SEG offers several advantages for businesses.
Monetise excess energy - By exporting surplus electricity, your business can earn extra income. This can help offset the initial investment in renewable energy systems and improve your overall financial performance.
Reduce energy costs - Renewable energy systems like solar panels help lower your energy bills. With SEG payments, you can further decrease your energy costs, making your business more cost-efficient.
Promote sustainability - Every unit of electricity you export to the grid reduces the need for fossil fuel-based energy production. By participating in the SEG, your business contributes to a greener, more sustainable energy system, enhancing your corporate social responsibility profile.
Flexible tariff options - Many energy suppliers offer SEG tariffs, and you’re not restricted to the same supplier for your energy and SEG payments. However, bundling both services with one supplier can often lead to better rates for your exported electricity.
Support a greener future
The Smart Export Guarantee offers businesses a great opportunity to monetise their renewable energy investments, lower energy costs, and support a sustainable energy future. By understanding the requirements and benefits of the SEG, your business can make an informed choice about participating in this scheme. Whether you are just starting with renewable energy or looking to optimise your current setup, the SEG can provide significant financial and environmental benefits.
If you're looking to adopt Solar PV for your business — or if you're set up already, find out more about maximising your earnings with SEG tariffs today.
Related articles
Sunshine Harvest - Solar PV for Sustainable Farming
How to clean your business solar panels for maximum efficiency
SMEs to play a major role in the UK’s rooftop solar revolution
The views, opinions and positions expressed within the British Gas business Blog are those of the author alone and do not represent those of British Gas. The accuracy, completeness and validity of any statements made within this blog are not guaranteed. British Gas accepts no liability for any errors, omissions or representations. The copyright in the content within the British Gas business Blog belongs to the authors of such content and any liability with regards to infringement of intellectual property rights remains with them. See the Fuel mix used to generate our electricity. Read about making a complaint about your business energy.
