MCS, grants and export
How the Smart Export Guarantee Works
The Smart Export Guarantee (SEG) pays UK solar households for every unit of electricity they export to the grid. It replaced the old Feed-in Tariff in January 2020 and is now the main government-backed financial benefit of going solar. Here is a plain guide to what it involves.
Helpful video reference. E.ON Next's guide "Smart Export Guarantee (SEG) explained" walks through how the scheme works, what you need to get started, and current rates. Worth watching alongside this page.
Notifiable and certified work
A solar installation connected to the mains grid for export is notifiable under G98 (smaller installs up to 16A per phase) or G99 (larger or battery-export systems), and the DNO must be notified before the system is energised. To access most SEG tariffs, the installation must carry an MCS certificate. Work on roof-tied DC strings, the consumer unit, or the incoming mains must be carried out by a qualified person.
1. What the SEG actually is
The Smart Export Guarantee is a UK government scheme under which electricity suppliers with more than 150,000 domestic customers are legally required to offer at least one tariff that pays small-scale renewable generators for electricity exported to the grid. The rate must be above zero, but suppliers set their own amounts and terms. It replaced the Feed-in Tariff, which stopped accepting new applicants in March 2019 and also paid for electricity generated, not just exported.
2. Who qualifies and what you need
To register with most SEG suppliers you need:
- An MCS-certified solar installation (some suppliers have relaxed this, but MCS is the safest route to eligibility).
- A smart meter or a separate export meter that records half-hourly data.
- A system generating from an eligible technology: solar PV, wind, micro-hydro, anaerobic digestion, or micro CHP.
- An installed capacity under 5 MW (virtually all domestic systems qualify).
If your installer is MCS-certified, they will register the system and issue you an MCS certificate after commissioning. Keep that certificate: you need it to apply for SEG, and it also protects your 0% VAT entitlement and manufacturer warranties.
3. What rate you can expect
Rates vary by supplier and change periodically. In mid-2026, competitive fixed-rate tariffs from major suppliers were paying in the range of 15 to 17.5 pence per kilowatt-hour exported. Variable-rate tariffs can track wholesale electricity prices and may pay more at peak times. Check the Ofgem SEG supplier list for current registered suppliers and compare rates before applying, because the difference between tariffs compounds across many years of exporting.
Quick example
A 4 kWp system in Kent might export 1,000 to 1,500 kWh a year after household use. At 15p per kWh, that is £150 to £225 a year. Add a battery and that figure typically falls significantly, but your bill savings go up by a similar or larger amount.
4. How to register
Apply through your chosen SEG supplier's website or customer portal. You will normally need to supply your MCS certificate number, your meter serial number, and basic installation details (panel capacity, inverter make and model). Once the supplier approves your application they set up an export meter read schedule, and payments follow the first settlement period, usually monthly or quarterly depending on the tariff.
You do not have to use the same company for your SEG as for your electricity supply, though some suppliers only offer their best rates to existing customers. It is worth comparing both your import tariff and your export tariff together, since some suppliers bundle competitive rates across both.
5. How battery storage changes the picture
A battery stores your solar surplus first and releases it when you need it in the evening. The knock-on effect is that less goes to the grid, so your exported units and your SEG income fall. For most households, however, the money saved buying less grid electricity outweighs the reduction in export payments, so the net financial position with a properly-sized battery is usually better than without one. Running the numbers on your own usage pattern is the reliable way to decide, rather than relying on a rule of thumb.
Frequently Asked Questions
Do I need MCS certification to receive SEG payments?
Most SEG suppliers require an MCS certificate as proof that the system meets quality standards. A small number of suppliers have moved away from this requirement, but MCS certification remains the safest way to ensure eligibility across all licensed SEG suppliers, and also protects your warranty, resale value, and 0% VAT entitlement.
What replaced the old Feed-in Tariff?
The Smart Export Guarantee replaced the Feed-in Tariff (FiT) from January 2020. The FiT also paid for generation, not just export. The SEG only pays for electricity you actually send to the grid, so pairing solar with a battery changes the economics compared to the old scheme.
Does adding a battery reduce my SEG income?
Yes. A battery stores your surplus solar first, so less goes to the grid and your export income falls. However, for most households the savings from using stored solar rather than buying evening grid electricity outweigh the reduction in SEG payments, so the net financial position is usually better with a battery than without one.