Smart Export Guarantee tariffs compared 2026

The Smart Export Guarantee pays you for every kWh your solar panels export to the grid

The Smart Export Guarantee (SEG) is a legal obligation on licensed electricity suppliers with 150,000 or more customers to pay households for excess solar electricity exported to the grid. Unlike the previous Feed-in Tariff, SEG rates are not fixed by government, each supplier sets its own tariff and rate, creating a competitive market. As of 2026, over 30 suppliers offer SEG tariffs, with rates ranging from 1.5p/kWh to over 15p/kWh depending on the tariff type and supplier (Ofgem, 2026).

The average UK household with a 4kW solar system can expect annual export payments between £80 and £300, based on typical export volumes of 2,000–3,000 kWh per year (Energy Saving Trust, 2026). This article compares the main SEG tariffs available in 2026, explains how the scheme works, and helps you decide which tariff suits your home.

How SEG tariffs differ from the old Feed-in Tariff, and why it matters for your payback

The Feed-in Tariff (FiT) closed to new applicants in March 2019; it paid a fixed generation rate plus an export rate of 4.1p/kWh. SEG tariffs pay only for exported electricity, not for all electricity generated, you must self-consume or store as much as possible to maximise savings (Ofgem, 2026).

SEG rates are market-driven and can change with as little as 30 days’ notice, unlike FiT which was index-linked for 20 years. The SEG does not require a separate export meter, suppliers use your generation meter reading or a deemed export assumption (typically 50% of generation) if you do not have a smart meter (Energy Saving Trust, 2026).

This difference means your income under SEG depends on how much electricity you export, not how much you generate. To maximise payback, you should aim to use as much solar power directly in your home during daylight hours, or store it in a battery for later use.

Quick numbers typical SEG tariffs available in 2026

Rates shown are for new customers as of January 2026; existing customers may be on different rates. All rates are per kWh exported; payment frequency affects cash flow but not total annual income (MCS, 2026; Ofgem, 2026).

How to choose the best SEG tariff for your solar system and household

If you have a smart meter, prioritise suppliers offering high per-kWh rates with monthly payments, Octopus and E.ON lead the market in 2026. If you do not have a smart meter, you may be limited to deemed export (50% of generation) or lower fixed rates, check the supplier’s policy before signing (Energy Saving Trust, 2026).

Consider the tariff type: fixed-rate tariffs are stable but potentially lower, while variable-rate tariffs can rise or fall with wholesale prices but may offer higher peaks. Look for tariffs with no exit fees or minimum contract terms, you can switch suppliers to chase better rates as the market evolves.

Calculate your annual export volume using your generation meter or a monitoring app; multiply by the tariff rate to estimate income. For example, if you export 2,500 kWh per year and choose a 15p/kWh tariff, you earn £375 annually. how to calculate solar panel payback

The direct answer the best SEG tariff in 2026 is Octopus Outgoing Fixed at 15p/kWh for households with a smart meter

Octopus Energy’s Outgoing Fixed tariff pays 15p/kWh for all exported electricity, the highest fixed rate available to new customers in 2026 (Octopus Energy, 2026). This rate is more than double the average SEG tariff (6.5p/kWh) and nearly four times the lowest rate (1.5p/kWh).

For a typical 4kW system exporting 2,500 kWh/year, Octopus pays £375 annually, compared to £162.50 on the average tariff or £37.50 on the lowest. However, Octopus requires a smart meter and may limit the tariff to customers with solar panels installed by MCS-certified installers. If you cannot get Octopus, E.ON Next at 12p/kWh is the next best option for households with smart meters (Ofgem, 2026).

Households without a smart meter will find fewer options and lower rates. In that case, British Gas at 10.5p/kWh or Scottish Power at 8p/kWh may be the best available choices, though you should check whether they accept generation meter readings.

Eligibility and certification what you need to qualify for any SEG tariff

Your solar panel system must be installed by an MCS-certified installer, this is a universal requirement for all SEG suppliers (MCS, 2026). The installation must be registered on the MCS database and you must have an MCS certificate to provide to your chosen supplier.

Your system must be under 5MW capacity (virtually all domestic systems qualify) and must not have received FiT payments previously. You need a generation meter (usually installed with the system) or a smart meter that can record export, most suppliers prefer smart meters in 2026 (Ofgem, 2026).

Some suppliers also require your property to have an Energy Performance Certificate (EPC) rating of D or above, though this is not universal. Check the supplier’s terms before applying. If your home has a low EPC rating, you may need to improve insulation or other energy efficiency measures first.

The payback reality how SEG income affects your solar panel investment

A typical 4kW solar system costs £5,000–£7,000 installed in 2026 (Energy Saving Trust, 2026). Without SEG, payback comes solely from bill savings on self-consumed electricity, typically £200–£400/year depending on household usage.

Adding SEG income at the best rates (15p/kWh) adds £300–£400/year, reducing payback time from 15–25 years to 8–12 years. Even on average SEG rates (6.5p/kWh), the extra £130–£200/year reduces payback by 3–5 years (DESNZ, 2026).

The combination of rising electricity prices (expected 5–10% increase in 2026) and SEG income makes solar panels financially viable for most UK households with suitable roofs. However, payback periods vary based on your roof orientation, shading, household electricity usage, and the SEG tariff you choose. solar panel battery storage guide