The Smart Export Guarantee, Explained

What the Smart Export Guarantee is

The Smart Export Guarantee is a government-backed requirement, administered by Ofgem, that obliges larger electricity suppliers to offer small-scale generators a tariff for the electricity they export to the grid. It came into force on 1 January 2020.

It replaced the Feed-in Tariff for new installations. The Feed-in Tariff closed to new applicants in 2019, so a solar system installed today cannot join it. Households already receiving Feed-in Tariff payments continue under that scheme; the Smart Export Guarantee is the route for everyone installing now.

The important difference is that the Feed-in Tariff set payment rates centrally. The Smart Export Guarantee does not. It guarantees that a tariff must be offered, but each supplier sets its own rate and terms. The only rule on price is that the rate must always be above zero.

Who has to offer an SEG tariff

Licensed electricity suppliers above a set customer threshold must offer at least one SEG tariff. Smaller suppliers can choose to offer one voluntarily, and several do.

Because suppliers set their own terms, an SEG tariff can be fixed or variable, and some are only available if you also buy your electricity from the same supplier. Others are open to anyone. Read the eligibility conditions before applying, not just the headline rate.

How you qualify, and why MCS certification is required

To join a Smart Export Guarantee tariff, your solar installation normally needs an MCS certificate. MCS is the standards body for small-scale renewable installations, and the certificate is the evidence suppliers use to confirm your system was designed and installed to the required standard.

This is one of the main reasons the choice of installer matters. A system fitted without MCS certification can generate perfectly well but may not be able to earn export payments. Every Cozy Home Solutions solar installation is handed over with its MCS certificate, alongside the DNO notification and manufacturer warranties registered in your name.

• An eligible installation, such as solar PV
• An MCS certificate for that installation
• A meter capable of recording your export, usually a smart meter
• An SEG tariff agreement with a supplier

How your export is measured

Payments are based on the electricity you actually export, not on an estimate. That means your supplier needs a meter that can record export readings, which in practice means a smart meter capable of half-hourly readings.

If you do not yet have a smart meter, ask your import supplier to fit one before you apply. Older meters cannot measure export separately, so they cannot support an SEG payment.

How SEG rates differ between suppliers

Rates vary widely from one supplier to the next, and they change over time. Some tariffs pay a single flat rate per unit exported; others vary by time of day. We do not quote SEG rates on this page because they change frequently and any figure would soon be out of date.

When comparing tariffs, look at the rate per unit, whether it is fixed or variable, the length of any fixed term, whether you must also import from that supplier, and how and when payments are made.

How to apply for an SEG tariff

Once your system is installed and commissioned, you apply directly to the supplier whose tariff you have chosen. You will usually be asked for your MCS certificate, your meter details and your installation date. The supplier then confirms the start date for payments.

You can take your import and export tariffs from different suppliers if that gives you a better overall deal. Check the export tariff terms first, as some are restricted to existing import customers.

SEG and battery storage

Adding a battery changes how much you export. A battery stores surplus solar generation for use in the evening, so you typically export less and use more of your own electricity. Whether that is the better arrangement depends on the difference between your import price and your export rate.

Some suppliers also offer export tariffs that work with batteries charged from the grid at lower-rate times. Terms vary, so confirm with the supplier how they treat exported electricity from a battery before you sign up. At your survey we design the solar and battery system around how you use electricity, and explain the options openly.