Smart Export Guarantee explained clearly
The Smart Export Guarantee (SEG) is a UK government-backed framework that allows households and organisations to receive payments for exporting surplus renewable electricity back to the national grid. Heliaxis helps you understand how SEG works and how it fits into your wider energy strategy.
Discuss Your OptionsWhy the Smart Export Guarantee exists
SEG was introduced to replace the export element of the Feed-in Tariff for new renewable installations. Unlike FIT, SEG does not offer fixed, government-set payments. Instead, licensed electricity suppliers are required to offer at least one export tariff to eligible generators.
However, SEG is not designed to be a primary revenue stream. It is best understood as a supplementary benefit that rewards surplus generation after on-site energy needs have been met.
How SEG works
At its core, SEG is straightforward:
- 1You generate electricity using a renewable system such as solar PV
- 2You use electricity on site as needed
- 3Any surplus electricity is exported to the grid
- 4Your export is metered and recorded
- 5Your electricity supplier pays you for the exported energy
Who is eligible for SEG?
Eligibility for SEG depends on several factors. While supplier requirements may vary slightly, the core eligibility criteria generally include:
Smart Meter Requirement
In most cases, participation in SEG requires export metering capable of half-hourly readings. For most customers, this means having a smart meter installed with an export MPAN. Heliaxis advises customers early on whether metering upgrades are likely to be required.
SEG vs Feed-in Tariff: key differences
One of the most common sources of confusion is the relationship between SEG and the Feed-in Tariff.
FITFeed-in Tariff
- Fixed, long-term generation payments set at installation
- Includes both generation and export elements
- Government-guaranteed rates
- Closed to new applicants since 2019
SEGSmart Export Guarantee
- Variable export payments set by suppliers
- Applies only to exported electricity
- Supplier-led tariffs that can vary
- Available for new installations
Important: FIT and SEG cannot be combined
If you are receiving FIT export payments, you cannot receive SEG export payments for the same electricity. However, FIT generation payments may continue independently.
Battery storage and SEG
Battery storage changes how SEG fits into an energy system. By storing surplus electricity, batteries reduce export volumes but increase on-site consumption.
This creates an important trade-off: exporting electricity earns SEG payments, but using electricity on site avoids buying electricity at retail rates.
In most cases, using energy on site is more valuable than exporting it.
Battery storage therefore tends to reduce SEG income while increasing overall savings. Heliaxis helps customers understand this balance and design systems that prioritise the most beneficial outcomes.
Exporting electricity
Earns SEG payments (typically lower rate)
Using on site
Avoids retail electricity costs (typically higher value)
What SEG is not
To avoid misunderstanding, it is important to be clear about what SEG does not provide:
Our guidance
SEG should never be the sole driver of system design. Heliaxis provides guidance based on delivery experience, ensuring that SEG is considered as one component of a wider energy strategy, not as a standalone incentive.
Integrating SEG into your energy strategy
The most successful renewable energy systems are designed holistically. Solar PV, battery storage, heating systems and tariffs all interact.
SEG provides a modest financial return on surplus solar energy that cannot be used on site. While SEG payments are typically lower than the cost of buying electricity from the grid, they still contribute to overall system value.
SEG works best when solar PV systems are sized to prioritise self-consumption, with battery storage used to maximise on-site use.
For businesses and public sector organisations, SEG can form part of a broader energy strategy, particularly where generation exceeds on-site demand at certain times.
In some cases, SEG payments may be relatively small compared to on-site savings. In others, particularly where export volumes are significant, SEG can contribute meaningfully to overall project economics.
Heliaxis ensures SEG is considered correctly
Smart Export Guarantee FAQs
Start the conversation
If you are considering solar PV, battery storage or upgrading an existing system and want to understand how the Smart Export Guarantee fits into your energy plans, Heliaxis can help.