What Is the Smart Export Guarantee and How Do I Claim It?

If you are considering solar panels — or have already had them installed — the Smart Export Guarantee is one of the key financial benefits you should be taking advantage of. Yet a surprising number of solar panel owners either do not know it exists or have not got around to claiming it. This guide explains what it is, how much you can expect to receive, who is eligible, and exactly how to claim it.

For the full picture on solar panel costs and installation in Cheshire, see our complete solar panels guide for Cheshire .

What Is the Smart Export Guarantee?

The Smart Export Guarantee — SEG — is a government-backed scheme introduced in January 2020. It replaced the previous Feed-in Tariff (FiT), which closed to new applicants in April 2019.

Under the SEG, licensed electricity suppliers with more than 150,000 customers are legally required to offer a tariff that pays you for surplus electricity you generate and export to the national grid. The scheme covers solar PV, wind, micro combined heat and power, hydro and anaerobic digestion systems — but in practice the vast majority of SEG claimants are solar panel owners.

The key word is surplus. You are paid for electricity you generate but do not use yourself — the excess that flows out of your property and into the grid. Electricity you generate and consume within your home reduces your import bill but is not paid for additionally under the SEG. This is why maximising self-consumption — using as much of your generation as possible rather than exporting it — is generally the better financial strategy, and why battery storage makes such a strong financial case alongside solar.

How Much Does the SEG Pay?

Unlike the old Feed-in Tariff, the SEG does not set a fixed rate. Instead, suppliers are required to offer a rate above zero but are free to set their own tariffs. This means rates vary between suppliers and change over time as suppliers adjust their offers.

Current SEG rates from the main suppliers typically range from around 4p to 15p per kWh exported, with some specialist tariffs — particularly from smaller suppliers — going higher. For context, the standard rate you pay to import electricity from the grid is currently around 24 to 28p per kWh, which illustrates why using your generation rather than exporting it is more financially valuable than the export payment alone.

The Ofgem SEG register lists all licensed suppliers offering SEG tariffs and their current rates. It is worth comparing rates before applying, as the difference between the best and worst offers can be meaningful over the lifetime of the installation.

Who Is Eligible for the SEG?

To be eligible for Smart Export Guarantee payments, you need to meet the following conditions.

MCS-certified installation: Your solar PV system must have been installed by an MCS-certified installer using MCS-certified equipment. This is the single most important eligibility requirement. Installations carried out by non-MCS installers are not eligible for SEG payments, which is one of the key reasons why choosing an MCS-certified installer matters — not just for quality assurance but for financial return. We are MCS-certified and all our installations are eligible for SEG payments.

System size: The system must have a capacity of 50kW or less. All standard domestic solar PV systems fall well within this limit.

Smart meter: You must have a smart meter installed at your property that can record export readings. Your electricity supplier can arrange a smart meter installation if you do not already have one. Standard meters cannot record export data and a smart meter is required before SEG payments can begin.

Not already claiming FiT payments: You cannot claim both Feed-in Tariff and SEG payments for the same installation. If you have an older system that is already registered for FiT payments, you continue on the FiT scheme and cannot also claim SEG.

How Do I Claim the Smart Export Guarantee?

The process is straightforward and involves four steps.

Step 1 — Have your system installed by an MCS-certified installer. If your system is already installed and you have not yet claimed, check that your installation certificate carries an MCS certificate number. If it does, you are eligible to proceed.

Step 2 — Get a smart meter installed. Contact your electricity supplier and request a smart meter installation if you do not already have one. Smart meters are available free of charge from your supplier. The installation typically takes a few hours and does not require you to change supplier.

Step 3 — Choose a supplier offering a competitive SEG tariff. You do not have to use your existing electricity supplier for the SEG. You can apply to any licensed supplier offering a SEG tariff, regardless of who supplies your electricity for import. Compare current rates on the Ofgem SEG register and choose the best offer.

Step 4 — Apply directly to your chosen supplier. Contact the supplier you have chosen and apply for their SEG tariff. You will need to provide your MCS installation certificate number, details of your system, and confirmation that you have a smart meter. The application process varies by supplier but is typically straightforward and can be done online.

Once your application is approved, payments are made according to the supplier’s schedule — usually monthly or quarterly based on meter readings or smart meter data.

How Much Will I Actually Receive?

How much you receive depends on three factors: your export rate, how much electricity you export, and how frequently payments are made.

A typical 4kWp solar system in Cheshire generates around 3,200 to 3,800 kWh per year. A household that uses around half of its generation internally and exports the other half would export approximately 1,600 to 1,900 kWh per year. At an export rate of 10p per kWh, that generates annual SEG payments of around £160 to £190.

This is not a transformative sum — but it is genuinely free money that requires no ongoing effort once your registration is in place. Combined with the much larger saving from not importing electricity you have generated yourself, the total financial benefit of solar plus SEG is substantially more significant.

The financial case improves further with battery storage. A battery system that increases self-consumption from 50% to 75% means you export less but consume far more of your own generation at full grid-avoidance value. The battery does not generate more SEG income — it generates less, because you export less — but the overall financial return is higher because the electricity you are consuming yourself is worth more than the export payment you would receive for it.

What Happened to the Old Feed-in Tariff?

The Feed-in Tariff closed to new applicants in April 2019. If you had solar panels installed before that date and registered for the FiT, you continue to receive those payments for the duration of your FiT agreement — typically 20 years from installation date. The FiT rates paid to existing recipients have not changed as a result of the SEG being introduced.

If you are a FiT recipient, you cannot also claim SEG payments for the same system. The FiT includes an export element — historically paid at a deemed 50% of generation rather than actual metered export — and this remains in place for existing recipients.

For anyone installing solar now, the SEG is the available route. It is less generous than the early FiT rates were, but the significant fall in solar panel costs since the FiT era means the overall financial return on a solar investment has remained broadly consistent.

Can I Switch SEG Supplier?

Yes. The SEG is not tied to your electricity import supplier and you are not locked in to any particular export arrangement. If a better SEG rate becomes available from a different supplier, you can switch your export registration in the same way you would switch any energy tariff. Checking the Ofgem register periodically to see whether more competitive rates are available is a sensible practice once you are registered.