The Smart Export Guarantee: Getting Paid for the Power Your Business Exports
The Smart Export Guarantee pays businesses for surplus renewable power exported to the grid. Here is how SEG works and how to get the best rate.
If your business generates its own renewable power, whether from rooftop solar, a wind turbine or combined heat and power, the electricity you do not use yourself has a value. The Smart Export Guarantee is the mechanism that turns that surplus into income.
What the SEG is
The Smart Export Guarantee (SEG) launched in January 2020, replacing the export element of the old Feed-in Tariff, which closed to new applicants in 2019. Under the SEG, licensed electricity suppliers with a large customer base are required to offer an export tariff that pays generators for each unit of surplus power they send back to the grid.
What you need to qualify
> An eligible generating technology (solar PV, wind, hydro, anaerobic digestion or micro-CHP) with a capacity up to 5MW, or up to 50kW for micro-CHP.
> MCS certification, or the equivalent for larger installations, confirming the system was properly installed.
> An export meter capable of half-hourly readings, in practice a smart meter, so the supplier can measure exactly what you export.
The rate is not fixed, so it pays to shop
Unlike the old Feed-in Tariff, SEG rates are set by each supplier, not by government, and they vary widely. Some are flat rates, others are tied to the wholesale price and pay more when demand is high. You do not have to take your export tariff from the same supplier that provides your import electricity, so the export side is worth reviewing on its own.
Where it fits in a wider strategy
For most business sites, the biggest saving from on-site generation is still avoiding import costs by using your own power, because a unit you consume is worth far more than a unit you export. The SEG monetises the surplus on top of that. Paired with battery storage, which lets you store cheap or self-generated power and release it when it is most valuable, the export tariff becomes one part of a broader self-supply strategy.
Chris Hurcombe is Managing Director of Catalyst Commercial Services, an independent business energy consultancy based in Birmingham. He works with UK businesses on energy procurement, contract management, and carbon strategy, and writes on energy markets, compliance, and the commercial implications of the UK's net zero transition.
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