Understanding the SEG Tariff: The Straight-Talking Guide

The Smart Export Guarantee — or SEG — gets mentioned a lot when people talk about solar. Sometimes it’s made to sound like a money-spinner. Other times it’s brushed off entirely.

The truth sits somewhere in the middle.

SEG isn’t a reason to install solar on its own — but if you’ve got panels, it’s worth understanding how it works and what you can realistically expect from it.

What Is the Smart Export Guarantee?

SEG is a UK-wide scheme that requires energy suppliers to pay you for excess electricity your solar panels export back to the grid.

In plain terms:

• Your panels generate electricity
• You use what you can in your home
• Any spare power goes back to the grid
• Your supplier pays you for that export

Simple enough.

SEG replaced the old Feed-in Tariff, which closed to new applicants in 2019.

How Much Does SEG Actually Pay?

This is where expectations need managed.

SEG rates:

• Vary by supplier
• Are usually paid per kilowatt-hour (kWh) exported
• Can change over time

Some suppliers offer decent rates, others less so — but none are likely to make you rich. For most households, SEG income is modest but steady.

Think “helpful top-up”, not “second salary”.

Who Can Get SEG Payments?

To qualify for SEG, you generally need:

• Solar panels installed by an MCS-certified installer
• A compatible export meter
• A SEG tariff with a participating energy supplier

Once you’re set up, payments are usually made quarterly or monthly, depending on the supplier.

No forms every week. No ongoing admin nightmare.

Why SEG Works Best With Batteries

If you export lots of electricity, SEG pays you for it — but exported energy is usually worth less than electricity you use yourself.

That’s why many households pair SEG with battery storage.

A battery lets you:

• Store excess energy
• Use it later in the evening
• Reduce how much you buy from the grid

SEG then becomes a backup option for power you genuinely don’t need.

Does SEG Make Solar Worth It?

On its own? No.

SEG is not the main financial case for solar — and anyone selling it that way is overselling.

Solar makes sense primarily because:

• You use your own electricity
• You reduce grid reliance
• You protect yourself against rising prices

SEG just adds a bit extra on top. And that’s fine.

Common SEG Myths (Worth Clearing Up)

• ❌ SEG does not pay for all electricity you generate
• ❌ It does not guarantee fixed income forever
• ❌ It does not replace bill savings

What it does do is reward you for surplus power you can’t use yourself.

Nothing more. Nothing less.

The Bottom Line

SEG is a sensible, no-fuss scheme that adds value to a solar system — but it’s not the headline act.

Used properly, it:

• Makes good use of spare electricity
• Provides a small ongoing return
• Complements a well-designed solar setup

It’s not flashy. It’s not dramatic.
It just quietly does what it says on the tin.

Which, frankly, is very Scottish.

👉 See How Solar & SEG Work Together for Your Home

If you want to understand how solar, batteries, and SEG fit together for your setup — and what’s realistic — you can compare options in a couple of minutes.

See your solar prices and compare systems — clear expectations, no sales patter.