Smart Export Guarantee for Commercial Solar

The Smart Export Guarantee pays UK businesses for surplus solar electricity exported to the grid. Compare current SEG rates, learn how to register, and discover strategies to maximise your export income.

What Is the Smart Export Guarantee?

The Smart Export Guarantee (SEG) is a UK government-mandated scheme that requires licensed electricity suppliers with 150,000 or more domestic customers to offer a tariff for small-scale low-carbon electricity exported to the National Grid. Introduced on 1 January 2020 as the successor to the Feed-in Tariff export element, the SEG ensures that generators of renewable electricity receive payment for the surplus energy they contribute to the electricity network.

For commercial solar installations, the SEG provides an additional revenue stream beyond the primary benefit of self-consumption. While using solar-generated electricity on-site delivers the greatest financial return by directly offsetting grid electricity purchases at 28-35p per kWh, the SEG ensures that any electricity your business cannot use at the point of generation still has monetary value rather than being given away for free.

The SEG applies to solar photovoltaic installations up to 5MW in capacity, covering virtually all commercial rooftop systems. Unlike its predecessor, the Feed-in Tariff, the SEG does not guarantee a specific payment rate. Instead, suppliers set their own rates, which must be greater than zero and can be either fixed or variable. This market-driven approach has created a competitive landscape where tariff rates differ substantially between suppliers.

How the SEG Works for Commercial Systems

The mechanics of the SEG for commercial solar installations are straightforward, though the financial optimisation requires careful consideration. When your solar panels generate more electricity than your business is consuming at any given moment, the surplus flows automatically into the grid through your electricity meter. Your SEG supplier meters this export and pays you at your agreed tariff rate.

For commercial installations, the export meter is typically separate from the generation meter. The export meter records precisely how much electricity flows back to the grid, and this metered data forms the basis of your SEG payments. Modern smart meters can record export in half-hourly intervals, which is essential for variable-rate tariffs that pay different rates at different times of day.

The proportion of generated electricity that gets exported varies significantly between businesses. A factory running heavy machinery throughout daylight hours might export only 10-20% of its solar generation, consuming the vast majority on-site. A warehouse with low daytime electricity demand might export 50-60%. Understanding your export profile is essential for projecting SEG income accurately and choosing between fixed and variable tariffs.

Current SEG Rates from Major Suppliers

SEG tariff rates change regularly as suppliers adjust their commercial offerings. The following table shows typical rates available from major UK energy suppliers in 2026. We recommend checking current rates directly with each supplier before making a decision, as these figures are indicative and subject to change.

Get Your SEG Income Estimate

Request a free quote including projected SEG income based on your system size and energy profile.

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SEG Tariff Rates by Supplier

Current indicative SEG rates from major UK energy suppliers. Rates are subject to change and should be verified directly with each provider.

Rates shown are indicative as of early 2026 and may vary. Always confirm current rates directly with each supplier.

Fixed vs Variable SEG Tariffs

Fixed-Rate Tariffs

Fixed-rate SEG tariffs pay a consistent price per kWh regardless of when the electricity is exported. This provides predictable, stable income that is easy to forecast and budget for. Fixed rates typically range from 3-5p per kWh from most suppliers, with some offering higher rates as promotional incentives.

Fixed tariffs are best suited to businesses that want simplicity and predictability in their revenue projections. They are the default choice for organisations without battery storage, as export timing cannot be controlled without energy storage capacity.

Variable-Rate Tariffs

Variable-rate SEG tariffs pay rates that fluctuate based on wholesale electricity market prices. During periods of high demand (typically late afternoon and early evening), rates can spike significantly above fixed-rate equivalents. Conversely, during periods of low demand or high renewable generation, rates may drop below fixed alternatives.

Variable tariffs are most effective when combined with battery storage, allowing you to store surplus generation and export strategically during peak-price periods. Octopus Energy's Agile Export tariff is the most prominent example, paying half-hourly rates linked to day-ahead wholesale prices.

Estimated Annual SEG Income by System Size

Projected annual export income at different SEG rates, based on typical UK generation data and commercial self-consumption patterns.

Based on average UK solar irradiance of 900 kWh/kWp/year. Export percentages reflect typical commercial consumption patterns. Actual results vary by location, orientation, and usage profile.

How to Register for the SEG

Registering for the Smart Export Guarantee is a straightforward process, but there are important prerequisites to meet before you can start receiving payments for your exported electricity.

Ensure MCS Certification

Your solar installation must be carried out by an MCS-certified installer using MCS-certified equipment. The installer will provide you with an MCS certificate upon completion, which serves as proof of compliance with the Microgeneration Certification Scheme standards. Without this certificate, you cannot register for any SEG tariff.

Install an Export Meter

An export meter must be installed to measure the electricity flowing back to the grid. For commercial installations, this is typically a separate smart meter capable of recording half-hourly export data. Your installer or electricity supplier can arrange meter installation, which is usually included as part of the overall project.

Compare and Choose a SEG Supplier

Research current SEG tariffs from all participating suppliers. Consider both fixed and variable rates, payment frequency, contract terms, and any switching restrictions. Remember, your SEG supplier does not need to be the same company that supplies your grid electricity.

Apply to Your Chosen Supplier

Contact your chosen SEG supplier and complete their registration process. You will need to provide your MCS certificate, meter details, installation address, and business information. Most suppliers process applications within 2-4 weeks, after which SEG payments commence based on metered export data.

Combining SEG with Battery Storage

Battery storage transforms the SEG from a passive income stream into an actively manageable revenue source. Without batteries, your system exports surplus electricity whenever generation exceeds consumption, regardless of the prevailing market rate. With battery storage, you gain the ability to store excess generation and choose when to export it.

This strategic approach is particularly powerful when combined with variable-rate SEG tariffs. By storing surplus solar generation during the middle of the day and exporting it during the evening peak demand period (typically 4-7pm), you can capture significantly higher export rates. Some businesses have reported effective export rates of 20-25p per kWh using this strategy during winter peak periods, far exceeding any fixed-rate SEG tariff.

Battery storage also increases the overall self-consumption ratio of your solar system, which remains the most valuable use of generated electricity. A well-sized battery can increase self-consumption from 40-60% to 70-90%, dramatically improving the overall financial return of the installation. The combination of increased self-consumption and strategic export timing often makes battery storage a compelling addition to any commercial solar project, even when the additional capital cost is factored in.

Maximising Your SEG Income

Four proven strategies to increase your export revenue and get the most from the Smart Export Guarantee.

Smart Export Guarantee FAQs

Maximise Your Solar Revenue

Our team models SEG income projections as part of every commercial solar quotation. We factor in your specific energy profile, optimal tariff selection, and the potential impact of battery storage on your total returns.

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• Predictable income stream
• Simple administration
• No requirement for smart export optimisation
• Best for systems without battery storage

• Higher potential income during peak periods
• Market-linked pricing reflects true value of electricity
• Ideal with battery storage for strategic export
• Requires smart meter and half-hourly settlement