Solar panels don’t just cut your bills — they can earn you money too. Through the Smart Export Guarantee (SEG), energy suppliers pay you for the surplus electricity your system sends back to the grid. It’s one of the most misunderstood parts of going solar, so here’s a clear explanation of how it works and how to get the most from it.
What is the Smart Export Guarantee?
The SEG is a government-backed scheme that requires larger energy suppliers to pay small-scale generators — including homeowners with solar panels — for the clean electricity they export to the grid. When your panels generate more than your home is using at that moment, the excess flows back out, and under an SEG tariff you’re paid for every unit. In effect, your roof becomes a small power station that sells its surplus.
How does it work in practice?
- You need a smart meter — it measures exactly how much electricity you export so you’re paid accurately.
- You choose an SEG tariff — suppliers set their own rates and terms, so it’s worth comparing. You can be with one supplier for the energy you buy and another for your export payments.
- You’re paid for what you export — typically as a credit or payment based on the units sent back to the grid.
- Your system must be certified — installations by an MCS-certified installer qualify, which is one reason certification matters.
How to earn more from the SEG
There’s a balance to strike. Every unit you use yourself saves you the full price of buying it from the grid, which is usually worth far more than the export rate. So the smartest approach is to use as much of your own generation as possible and export the genuine surplus. A home battery helps enormously here — it stores daytime generation for evening use, so you buy less from the grid while still exporting what you truly don’t need. Shopping around for a competitive SEG tariff then tops up the return.
Frequently asked questions
Do I get paid for all the electricity my panels make?
No — you’re paid for what you export to the grid, not what you use in your home. Using your own generation is actually more valuable, because it saves you the full cost of buying that electricity.
Do I need a battery to benefit from the SEG?
No, but a battery changes the maths in your favour. Without one you export more surplus; with one you store it and buy less from the grid, which is usually the better financial outcome.
Can I choose any supplier for SEG payments?
You can choose any supplier that offers an SEG tariff, and it doesn’t have to be the one you buy your energy from — so it pays to compare rates.
Make the most of your solar
A well-designed system, ideally with storage, lets you use more of your own power and export the rest for payment. As MCS-certified installers across Dorset, Hampshire and Wiltshire, we register every installation for the SEG and design your system to maximise its value. Get a free, no-obligation quote.
This guide is part of our complete guide to solar panels.