Posted:
- Guide
If you’ve got solar panels (or you’re thinking about getting them), you might be wondering:
What happens to all the energy I don’t use?
Can I sell my extra electricity back to the grid?
How much will I actually get paid?
That’s where the Smart Export Guarantee (SEG) comes in.
What is the Smart Export Guarantee (SEG)?
The SEG is a UK government-backed scheme designed to give back to homeowners for generating renewable electricity. If your solar panels produce more energy than you use or need, SEG allows you to sell that extra power back to the grid - making your solar panels an even better choice for your pocket.
Before SEG, there was the Feed-in Tariff (FiT), which offered fixed rates across all suppliers. That’s gone now. Instead, with SEG, energy suppliers set their own prices.
Why was SEG introduced?
The Smart Export Guarantee was introduced in 2020 to support the adoption of renewable energy and help meet national carbon reduction goals in UK homes. By making it easier for households to sell their unused energy, SEG helps to encourage more people to invest in solar and other renewable technologies.
After the Feed-in Tariff (FiT) was phased out in 2019, SEG was designed to:
Encourage more people to use renewable and greener energy
Reduce carbon emissions
Give homeowners a financial incentive to go greener
How does the Smart Export Guarantee work?
When your solar panels (or another renewable system) generate more electricity than you use, that extra energy can be sent back to the grid for other homes to use
Your energy supplier pays you per kilowatt-hour (kWh) exported
SEG rates can vary dependent on the supplier
Am I eligible for SEG payments?
To qualify for Smart Export Guarantee payments, you need to meet a few key criteria. If your home generates renewable electricity and you want to earn money from the energy you export, here’s what you need to check before signing up:
1. You need a renewable energy system
Your setup must be one of the following:
Solar panels
Wind turbines
Hydropower systems
Micro combined heat and power – up to 50kW
Anaerobic digestion systems
2. Your system must be certified
Your renewable energy system must be certified under the Microgeneration Certification Scheme (MCS) or a similar scheme in the UK. This makes sure that your system meets industry standards for quality and safety. To make sure that your installer is MCS certified, you can visit the official MCS website and use their installer search tool. Enter the installer's name and location to confirm their certification status.
3. You’ll need a Smart Meter
To start receiving SEG payments you’ll need to have a smart meter. This makes sure that your chosen supplier can accurately measure the electricity you export to the grid, making sure you get paid for every unit. Without a smart meter, your supplier can't track the exported energy, making it difficult to pay you for your energy. If you don't have a smart meter you’ll need to get one installed before applying. Book a free smart meter appointment with OVO today.
4. You must be in England, Scotland, or Wales
Northern Ireland isn’t included in the SEG scheme.
How much money can you make from SEG?
Smart Export Guarantee rates vary widely. Customers who get their panels and a battery installed with OVO can get an exclusive 20p per kWh. Meaning you could save up to £1,300 a year.
The average rate across all suppliers in 2023-2024 was around 8.9p per kWh
Some suppliers offer higher rates if you're an existing customer
Example earnings for a typical home
Let’s say you have a 3.5 kWp solar system and a supplier pays 12p per kWh:
You generate 1,325 kWh of excess energy per year
You get paid 12p per kWh
Your annual SEG payment is 1,325 x 12p = £159.00 per year
Applying for SEG with OVO
OVO offers several SEG tariffs to suit different customer needs:
Our basic SEG tariff: Available to anyone exporting excess renewable energy, regardless of their energy supplier
Our Beyond exclusive rate: For OVO electricity customers who have Beyond, our free Energy Savings Account that rewards customers for being with us
Our exclusive rate for customers who get their panels and battery installed by OVO, have their energy supplied by OVO, and agree to email comms
To sign up, visit OVO's SEG page and choose the tariff that best fits your situation. You’ll need to have all your necessary documents, including proof of ownership, certification, and metering information.
What are OVOs SEG rates?
If you're generating your own renewable electricity at home, OVO offers Smart Export Guarantee (SEG) rates that let you earn money by exporting unused electricity back to the grid. These vary based on your setup, electricity provider, and whether you opt for solar panel installation through OVO. Here's a breakdown of the three main SEG options available:
Standard Smart Export Guarantee
The standard OVO SEG tariff pays you 4p per kWh for the electricity you export back to the grid. It's open to anyone generating renewable energy at home, and you don’t need to be an OVO Energy customer to qualify.
Eligibility:
You must generate your own renewable energy at home (solar, wind, etc.)
Your installed capacity must not exceed 5MW, or 50kW for Micro-CHP systems
Your electricity supply can be with any provider
This is a flexible option for those who’ve already installed their own system and want to earn a return regardless of their energy supplier.
SEG Beyond Exclusive: For OVO Customers
The SEG Beyond Exclusive tariff offers a higher export rate of 12p per kWh, but it's exclusive to OVO Energy customers who also join their OVO Beyond program.
Eligibility:
Generate renewable electricity at home
Installed system must not exceed 30kW
You must be an OVO customer and sign up to OVO Beyond
In addition to a better rate, this tariff also includes reward perks via the Beyond account, making it ideal for those who are committed to OVO for both energy supply and sustainability initiatives.
SEG Install Exclusive
The SEG Install Exclusive offers the highest SEG rate - up to 20p per kWh - when you have your solar panels and home battery storage installed directly by OVO.
Eligibility:
Generate your own renewable energy
Installed capacity must not exceed 30kW
Your electricity supply must be with OVO
You must have OVO-installed solar panels and battery
Note: If only the solar panels are installed (without a battery), you’ll still receive a generous 15p per kWh.
This tariff is perfect for homeowners starting from scratch or looking for a bundled solution that includes installation, energy supply, and a top-tier SEG rate.
SEG Frequently Asked Questions (FAQs)
1. Do I have to be an energy customer to get SEG?
No. You can sell your exported energy to any supplier offering SEG, not just your electricity provider. But you’ll often get better rates if you’re also a customer.
2. How often do SEG payments happen?
It depends on your supplier. Some pay monthly, others quarterly. At OVO, we pay quarterly.
3. Will SEG payments affect my taxes?
For most homeowners, SEG earnings aren’t taxable. But if you're generating a large amount of electricity, it might count as taxable income. Please check with HMRC.
4. Can I switch suppliers while on SEG?
Yes, But you’ll need to reapply for SEG payments with your new supplier.
5. What If I have a battery?
Some suppliers don’t pay for energy stored in a battery - only what’s generated in real time. Check before signing up.
6. What if my smart meter stops working?
Your payments might be paused until it’s fixed. You’ll need to contact your supplier if this happens.