Everything you need to know about the Smart Export Guarantee (SEG)
Are you thinking about installing solar panels? Or maybe you already have them and can’t help but feel a tiny bit smug every time the kettle boils. Either way, you may have heard about the Smart Export Guarantee – or SEG for short. In a nutshell, it’s how you can get paid for renewable electricity you create but don’t use yourself.
To help make the opportunity more understandable, we’ve created a guide to what the SEG is and how it works. So it’s easy to decide if it’s right for you, and what benefits you can expect (spoiler alert: there are quite a few).
So what exactly is the SEG?
It’s a good question, because the name can make it sound a little technical. But it’s actually surprisingly simple.
The Smart Export Guarantee (SEG) is a UK government scheme that pays homes and small businesses with renewable technologies, like solar panels, for selling excess energy back to the grid.
Picture it this way: You’ve got solar panels on your roof and they’re merrily working away. They’ll often produce more electricity than you actually need – particularly when you’re out and about. Instead of all that great, greener energy going to waste, a SEG tariff means you can export any electricity you don't use back to the National Grid. And energy suppliers, like us, pay you for doing just that.
What you need to sign up for the Smart Export Guarantee (SEG)
First up, you need to have a renewable energy system like:
- Solar panels
- Wind turbine
However, anaerobic digestion, hydro power or micro combined heat and power (micro-CHP) systems can also be used.
Your renewable energy system must be small scale – up to a capacity of 5 MW, or 50 kW for micro-CHP. To give you an idea of what this means in everyday terms, the average home solar system generates 3.5 kW on the sunniest of days1 which is well within the limit.
You’ll need to make sure your system’s certified under the Microgeneration Certification Scheme (MCS) or similar. This just shows it meets recognised standards.
And the only other thing you’ll need is an electricity smart meter that records export readings every 30 minutes. The good thing is, if your smart meter has been installed in the last few years, it should already be able to do this. But if you’re not sure, it’s worth checking with your energy provider.
More about the benefits of the Smart Export Guarantee
Now we’re on to the good stuff!
Earn money for renewable energy you don’t use
When you generate more electricity than your home needs, that extra energy doesn’t go to waste. With a SEG tariff, you simply sell it back to the grid.
Lower your energy costs even more with a SEG tariff
Just having solar panels, or another form of renewable technology, helps to reduce your energy bills. Add SEG payments on top, and you can bring your energy costs down even more. So you’ll offset the cost of your solar setup, for instance, more quickly.
Support a greener, cleaner energy system
Every bit of electricity you send to the grid means less energy that needs to be made by burning fossil fuels. The more people who join the SEG, the more sustainable energy there is out there – and that benefits everyone.
Sell your excess electricity
You’ll need to sign up for a Smart Export Guarantee (SEG) tariff. All the big energy providers offer one. It doesn’t need to be with the same company that supplies your energy. But you’ll often get a better price for your excess electricity if you do.
For example, British Gas electricity customers on our best SEG rate - Export and Earn Plus currently get paid five times more for what they sell to the grid than those on our Flex tariff, which is available to everyone.
Just to give you an idea of the process, you can sign up to a SEG tariff with us by going through a simple, step-by-step online application. We’ll ask you for some information about your renewable energy system and a few other straightforward details. Then we’ll take care of the rest.
Whether you’ve just started thinking about it or are already generating your own electricity, find out more about rewarding renewable energy with the Smart Export Guarantee.
Published on 30 May 2025 by:
Victoria Daines
Customer Engagement Communications Manager
Additional information
Solar panels: costs, savings and benefits explained – Energy Saving Trust.