SEG Payments Explained: How to Get Paid for Selling Electricity to the Grid


Solar installation on a pitched roof in Essex

If you have solar panels or are planning a solar installation, you’ve probably heard about SEG payments. The Smart Export Guarantee (SEG) allows homeowners to earn money by selling electricity to the grid that they don’t use themselves.

For many homeowners across Essex, Kent, Suffolk, Hertfordshire and the wider South East and East Anglia, SEG payments provide an additional financial benefit alongside reduced electricity bills. Combined with the right export tariff, battery storage and smart energy management, exporting surplus solar energy can significantly improve the long term return on your investment.

At SolarTherm UK, we’ve designed and installed thousands of solar PV systems throughout the South East and East Anglia. As an MCS certified, NICEIC approved installer and EPVS Gold Standard member, we help customers understand not only how much solar they can generate, but also how to maximise the value of every kilowatt hour produced.

What Are SEG Payments?

The Smart Export Guarantee (SEG) is a government backed scheme introduced in January 2020 after the closure of the Feed in Tariff (FiT). Rather than paying homeowners simply for generating electricity, the SEG pays you for the electricity you export back to the National Grid.

Whenever your solar panels generate more electricity than your home is using, the surplus energy is exported. Your chosen energy supplier then pays you for every unit (kWh) exported.

Simply put:

  • Generate electricity from your solar panels
  • Use what your home needs
  • Export the surplus
  • Receive SEG payments from your supplier

This means your solar system can continue generating value even when you’re away from home or producing more electricity than you’re consuming.

How Does the Smart Export Guarantee Work?

The process is relatively straightforward. Your solar panels generate electricity throughout the day. Your home automatically uses this electricity first. Any unused energy flows back through your electricity meter into the grid.

A smart meter records exactly how much electricity has been exported. Your chosen energy supplier then pays you based on your agreed export tariff. Most suppliers pay per kilowatt hour (kWh), although payment rates vary considerably between providers.

Who Is Eligible for SEG Payments?

Most homeowners can qualify provided they meet the following requirements:

  • An MCS certified solar installation
  • Solar PV system up to 5MW (far larger than domestic systems)
  • Smart meter capable of recording exports
  • Eligible export tariff with a participating supplier

This is one reason choosing an MCS certified installer like SolarTherm UK is so important. Without an MCS certificate, many suppliers will not offer SEG payments.

How Much Are SEG Payments Worth?

There isn’t a single national SEG rate. Every supplier sets their own export tariff, meaning payments can range significantly depending on the tariff selected, from 4p per kWh to 30p per kWh.

Factors affecting your income include:

  • Export tariff rate
  • Annual solar generation
  • Household electricity usage
  • Battery storage
  • Time of use tariffs
  • Smart energy management

Although SEG payments along rarely justify installing solar, they significantly improve the overall financial return alongside bill savings.

What Is the Difference Between SEG and the Feed in Tariff?

Many homeowners still remember the Feed in Tariff (FiT). The two schemes work differently.

Feed-in Tariff (FiT)Smart Export Guarantee (SEG)
Closed to new applicantsOpen to eligible new installations
Paid for generationPays only for exported electricity
Government-set paymentsSupplier sets payment rates
Included export payment estimateMeasures actual exported electricity
Introduced in 2010Introduced in 2020

If you already receive FiT payments, these generally continue under your original agreement.

Which Suppliers Offer SEG Payments?

Most major UK energy suppliers now offer Smart Export Guarantee tariffs. Octopus Energy, E.ON Next and EDF Energy have some of the most competitive export tariffs, but British Gas, Scottish Power and Ovo Energy all offer SEG rates too. Each supplier offers different export rates, eligibility criteria an payment structures, so it’s important to shop around and find the tariff that works best for your usage patterns. Some tariffs reward maximum exports, while others are designed around battery storage and smart home technology.

Where Does Octopus Flux Fit In?

One of the most talked about export tariffs is Octopus Flux. Unlike a standard SEG tariff, Octopus Flux uses time of use pricing. Instead of paying one fixed export rate all day, electricity exported during peak demand periods can receive significantly higher payments.

This works particularly well when combined with battery storage, smart charging and automated battery scheduling. For homeowners with batteries, Octopus Flux can often outperform traditional fixed rate SEG tariffs.

SolarTherm UK regularly designs battery ready systems that are compatible with smart export tariffs like Octopus Flux, helping customers maximise both savings and export income.

Can a Battery Increase SEG Payments?

Yes, but not always in the way many people expect. A battery’s main purpose is to increase self-consumption, allowing you to use more of your own solar electricity instead of importing power from the grid.

However, with intelligent tariffs such as Octopus Flux, batteries can also:

  • Export electricity during peak value periods
  • Store surplus daytime generation
  • Reduce peak time imports
  • Improve overall financial returns

Rather than exporting immediately, smart batteries can choose the most profitable time to sell electricity to the grid.

Is It Better to Export or Use Your Own Electricity?

Generally speaking, using your own electricity often provides the greatest financial saving because retail electricity costs are usually higher than standard SEG export rates. However, every household is different.

The ideal balance depends on:

  • Energy usage patterns
  • Whether you work from home
  • Battery storage capacity
  • EV charging
  • Export tariff
  • Smart home automation

An experienced installer should assess your household consumption before recommending the best system design.

How SolarTherm UK Helps You Maximise Export Income

Installing solar panels is only part of the picture. At SolarTherm UK, every system is designed to maximise long term value by considering:

  • Solar generation forecasts
  • Household energy consumption
  • Future EV ownership
  • Battery compatibility
  • Smart export tariffs
  • DNO export limits
  • Future energy price changes

We don’t simply install solar panels – we help homeowners understand how to optimise their system for years to come. Our experienced design team supports customers throughout Essex, Kent, Suffolk, Hertfordshire and the wider South East and East Anglia, ensuring every installation is designed for maximum performance and future flexibility.

Why Choosing an MCS Installer Matters

Many homeowners focus purely on installation cost. However, choosing an accredited installer affects your future eligibility for export payments.

SolarTherm UK provides:

  • MCS certified installations
  • NICEIC approved electrical work
  • EPVS Gold Standard membership
  • Fully compliant DNO applications
  • Smart meter compatibility advice
  • Ongoing, long term customer support

These accreditations ensure your system meets the standards required by most energy suppliers offering Smart Export Guarantee payments.

Start Maximising Your Solar Exports with SolarTherm UK

Whether you’re considering your first solar installation or looking to improve the performance of an existing system, understanding SEG payments is key to getting the best return from your investment.

At SolarTherm UK, we design high performance solar PV systems that are ready for today’s energy market and tomorrow’s smarter export tariffs. From helping you understand the Smart Export Guarantee to ensuring compatibility with innovative options like Octopus Flux, our experienced, in house teams are here to help.

Contact SolarTherm UK today for a free, no obligation quote and design, tailored to your property, usage and future energy needs. No hard sell, just honest, expert advice – and the time you need to make an informed decision.

Your home. Your energy. Your future.

Frequently Asked Questions

SEG payments are payments made by energy suppliers for surplus electricity exported from eligible solar PV systems back to the National Grid.

Yes. Most suppliers require a smart meter capable of accurately recording exported electricity.

Usually no. Most suppliers require your solar installation to be completed by an MCS Certified installer.

No. Octopus Flux is a specific energy tariff that includes time-based import and export pricing. The Smart Export Guarantee is the wider government-backed framework requiring larger suppliers to offer export tariffs.

Yes. While using your own solar electricity usually saves more money, selling electricity to the grid through a competitive SEG tariff provides additional income and improves the overall return on your solar investment.

Yes. Many homeowners can switch export tariffs if they meet the supplier’s eligibility criteria and meter requirements.