Guide
Get paid for renewable electricity you generate
How to register for the Smart Export Guarantee (SEG) to receive payment for renewable electricity you export to the grid. Covers solar PV, wind, and other small-scale renewables up to 5MW.
If you generate renewable electricity - from solar panels, a wind turbine, or other small-scale renewables - you can be paid for the electricity you export to the grid through the Smart Export Guarantee (SEG).
The SEG replaced the Feed-in Tariff (closed in 2019) as the main payment mechanism for small generators. While export rates are typically lower than the old FIT, SEG provides ongoing income from your renewable installation.
Are you eligible for SEG?
You can apply for SEG if:
- Your installation is up to 5MW total capacity
- You generate from an eligible technology (solar PV, wind, hydro, anaerobic digestion, or micro-CHP)
- Your installation has MCS certification (Microgeneration Certification Scheme)
- You have a smart meter or approved export meter
- You're not receiving Feed-in Tariff export payments
MCS certification
Your installation must be MCS certified to receive SEG payments:
How to get MCS certification:
- Use an MCS-certified installer for your renewable installation
- The installer registers your installation with MCS
- You receive an MCS certificate with your installation reference number
- This reference is needed when you apply for SEG
If your installation wasn't done by an MCS installer, you may be able to get retrospective certification, but this involves additional cost and inspection.
How to register for SEG payments
Choosing a SEG licensee
Electricity suppliers with 150,000+ customers must offer SEG, but many smaller suppliers also participate. Key factors to consider:
- Export rate: Typically 3-15p per kWh - compare rates carefully
- Fixed vs variable: Some offer fixed rates for a period, others vary
- Contract length: Some require minimum contract periods
- Payment frequency: Monthly, quarterly, or annually
- Your electricity supplier: You don't have to use the same company
The Energy Saving Trust and Ofgem maintain lists of SEG licensees for comparison.
REGO certificates (larger generators)
If you're a larger generator and want to sell renewable energy guarantees:
When you need a generation licence
Most small generators don't need a formal licence from Ofgem. You're typically exempt if:
- Your capacity is under 50MW (most renewable technologies)
- You're generating for on-site consumption with excess exported
Larger installations may need to apply for a generation licence. Check the exemptions before assuming you don't need one.
Grid connection
To export electricity, you need a grid connection agreement with your Distribution Network Operator (DNO). For small installations (under 4kW), your MCS installer typically handles this through the 'Fit and Inform' notification process.
Larger installations may need a formal connection application, which can involve:
- Feasibility study (small fee)
- Connection offer with costs and timescales
- Works to upgrade local network if needed
Common questions
Do I need to pay tax on SEG income? Income from SEG is generally taxable. For domestic installations, there's usually no tax if you use most electricity yourself. Business installations should account for the income. Check with HMRC or an accountant.
Can I get SEG if I had FIT? If you're already receiving FIT export payments, you cannot also receive SEG. If you were on FIT generation-only (no export payment), you may be able to apply for SEG export.
What happens if I move house? Solar panels are usually included in the house sale. The SEG contract typically transfers to the new owner, or you may need to notify your SEG licensee.
Can I store electricity instead of exporting? Yes. Installing a battery storage system lets you use more of your own electricity rather than exporting. This is often more valuable than SEG payments.