Learn how the Smart Export Guarantee (SEG) pays you for exporting renewable electricity, with tariffs, eligibility rules, and tariff comparisons.
The Smart Export Guarantee (SEG) in the UK pays you for surplus renewable electricity you export to the national grid, with tariffs ranging from 1p to 15p per kWh, and peak rates up to 28p/kWh for real-time flexible pricing. To meet conditions, your renewable installation must be under 5MW and comply with metering standards. Payments occur quarterly, supporting your shift to clean energy while you manage agreements easily online. Understanding these details will clarify how SEG advances your renewable energy participation.
How the Smart Export Guarantee Supports Renewable Energy
Although generating renewable energy requires upfront investment, the Smart Export Guarantee (SEG) supports this transition by offering payments for surplus electricity exported to the national grid, thereby encouraging both businesses and homeowners to adopt technologies such as solar panels and wind turbines.
The SEG guarantees that renewable energy systems are certified and connected to smart meters, which accurately measure exported electricity, enabling reliable compensation. In the 2023-24 fiscal year, £30.7 million was paid to SEG participants, demonstrating significant financial backing for renewable energy producers.
Tariffs vary from 1p/kWh to 15p/kWh, with peak rates reaching up to 28p/kWh, creating a substantial economic incentive. By promoting the export of clean energy, the SEG reduces carbon emissions and decreases dependence on fossil fuels, advancing the UK’s sustainability goals. Additionally, the implementation of financial incentives through the SEG encourages even greater adoption of solar technology among consumers.
Eligibility Requirements for SEG Participation
Because the Smart Export Guarantee (SEG) aims to support genuine renewable energy generation, it sets specific eligibility requirements that installations must meet to meet conditions for payments.
You need to have a renewable or low carbon technology, such as solar PV, wind, hydro, anaerobic digestion, or micro-CHP, with a capacity no greater than 5MW (50kW for micro-CHP). Additionally, your system must be accredited by the Microgeneration Certification Scheme (MCS) or an equivalent body.
To measure exported electricity accurately, your installation requires a smart meter or a meter that records half-hourly export data. You cannot participate if your system is under rent-a-roof agreements or located in unoccupied properties. For the Export & Earn Plus tariff, you must be the named electricity account holder, and British Gas must supply your premises.
Understanding SEG Tariff Options and Payments
You’ll encounter two main SEG tariff types: fixed rates that offer a set payment per kWh exported, and flexible rates that fluctuate based on electricity requirement and market conditions.
To meet conditions for these payments, your installation must meet specific criteria, including MCS accreditation and a smart or half-hourly export meter. Understanding how payments are calculated and ensuring eligibility are essential steps to maximize your earnings from exported renewable energy. Additionally, the use of solar battery storage can enhance your overall savings and efficiency in energy usage.
Fixed Vs Flexible Rates
When evaluating SEG tariff options, understanding the distinctions between fixed and flexible rates is essential for optimizing your export payments.
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Fixed rate tariffs offer a stable payment per kWh exported, typically ranging from 1p to 15p, ensuring predictable income regardless of market fluctuations.
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Flexible rate tariffs adjust payments based on real-time electricity requirement and system value, potentially reaching up to 28p/kWh during peak periods.
Your choice depends on your appetite for risk and ability to monitor market conditions. Both tariff types require installations under 5MW (or 50kW for micro-CHP) with half-hourly metering. Additionally, pairing solar panels with eligible batteries can enhance earnings under either tariff, as battery-specific SEG rates often provide better returns in both fixed and flexible scenarios.
Payment Calculation Methods
Understanding how payments are calculated under the Smart Export Guarantee (SEG) helps you evaluate the financial benefits of exporting surplus electricity to the grid. SEG payments depend on the amount of electricity you export, measured in kilowatt hours (kWh), with rates varying by supplier from about 1p/kWh to 15p/kWh, and peak rates potentially reaching 28p/kWh.
Your earnings directly correspond to these rates multiplied by your exported kWh. The current price cap for self-generated electricity savings is 24.5p/kWh, which serves as a benchmark for potential earnings. Payments are processed quarterly, made within 28 working days after you submit export meter readings. To meet conditions, your installation must use a smart meter capable of half-hourly readings, and your renewable system must be MCS-certified, ensuring accurate and reliable payment calculations.
Tariff Eligibility Criteria
Although the Smart Export Guarantee (SEG) offers a range of tariff options, eligibility hinges on specific criteria related to your renewable installation and metering setup.
Your system must use approved renewable technologies similar to solar PV, wind, hydro, or micro CHP, with a maximum capacity of 5MW (50kW for micro CHP), and be accredited by the Microgeneration Certification Scheme or an equivalent standard.
Additionally, you need a smart meter or a meter capable of half-hourly export readings to accurately track the electricity you export. The electricity account must be in your name, and properties that are unoccupied or under rent-a-roof agreements are excluded.
Finally, you must actively sign up for a SEG tariff, as payments for exported electricity aren’t automatic, and tariffs vary by provider and contract terms.
The Application and Enrollment Process
Since enrolling in the Smart Export Guarantee (SEG) requires meeting specific criteria, you’ll need to complete an online application through your chosen SEG provider’s website to join the scheme.
To meet conditions, your renewable energy installation must hold accreditation from the Microgeneration Certification Scheme (MCS) or an equivalent body, and it must be capable of exporting electricity to the grid. Additionally, a smart meter or a half-hourly export recording meter must be installed to accurately track exported electricity.
For example, British Gas offers two main SEG tariffs: Export and Earn Plus at 15.1 pence per kWh for customers and Export and Earn Flex at 3.02 pence per kWh for non-customers. Importantly, there are no exit fees, allowing you to switch providers or cancel participation without financial penalties.
Comparing SEG With the Feed-In Tariff Scheme
While the Feed-in Tariff (FIT) scheme closed to new applicants in 2020, it still serves as a useful benchmark for comparing renewable energy incentives with the Smart Export Guarantee (SEG).
FIT paid for all electricity generated, offering higher, fixed payments over 20 to 25 years, often with indicator-linking. In contrast, SEG compensates only for surplus electricity exported to the grid, with rates varying by supplier, typically ranging from 1p/kWh to 15p/kWh, and peak rates reaching up to 28p/kWh.
Existing FIT participants continue to obtain guaranteed payments, making switching to SEG generally inadvisable due to its variable earnings and shorter contract terms. In 2023-24, £30.7 million was paid to SEG generators, reflecting rising interest in renewable exports despite lower, less predictable tariffs compared to FIT.
Managing and Cancelling Your SEG Agreement
When you decide to manage or cancel your Smart Export Guarantee (SEG) agreement, you benefit from considerable flexibility, as there are no exit fees and no required notice periods to switch suppliers.
This allows you to explore better tariff rates without administrative barriers. To cancel, you must provide a final export meter reading, which guarantees accurate settlement of any outstanding payments for exported electricity.
You can update your payment details conveniently through an online form using your installation ID, maintaining seamless transactions. For any questions or assistance related to managing or cancelling your SEG agreement, you can contact British Gas via email or phone during their specified hours.
Overall, the SEG framework supports straightforward management, offering consumers practical control over their agreements.