The Smart Export Guarantee Explained: How to Earn Money from Your Solar Panels

When you install solar panels in Kent, you will almost certainly generate more electricity at certain times of day than your household actually needs. Rather than letting that surplus go to waste, the Smart Export Guarantee (SEG) allows you to sell it back to the grid and receive payment from your energy supplier. This guide explains how the scheme works, what you can earn, and what you need to do to get started.

What is the Smart Export Guarantee?

The Smart Export Guarantee is a government-backed scheme introduced in January 2020 to replace the Feed-in Tariff, which closed to new applicants in March 2019. Under the SEG, energy suppliers with 150,000 or more domestic customers are legally required to offer at least one export tariff to eligible generators. This means that if you have a qualifying solar panel system, you have the right to be paid for the electricity you export to the national grid.

The scheme is open to households with solar panels, wind turbines, micro-CHP systems, and hydro systems up to 5MW in capacity. For most homeowners in Kent, solar panels are the most common qualifying technology.

How much can you earn through the Smart Export Guarantee?

The rate you receive for exported electricity varies between suppliers and can change over time. Suppliers are free to set their own rates as long as they remain above zero. In practice, SEG export rates have ranged from around 1p per kilowatt hour at the lower end to over 15p per kilowatt hour on some tariffs. Rates fluctuate and it is worth shopping around to find the best deal at the time you apply.

To put this into context, a typical 4kWp solar system in Kent might export somewhere in the region of 1,000 to 1,500 kilowatt hours of electricity per year, depending on your usage patterns and whether you have battery storage. At an export rate of 6p per kWh, that would generate between £60 and £90 per year in SEG income. Higher export tariffs or larger systems can increase this figure significantly.

It is worth noting that the primary financial benefit of solar remains the electricity you generate and use yourself, which avoids the need to buy from the grid at full retail price. SEG income is an additional benefit rather than the main financial driver.

Who is eligible for the Smart Export Guarantee?

To be eligible for SEG payments, your solar panel installation must meet certain criteria. The most important requirement is that your system is installed by an MCS-accredited installer and that the installation holds an MCS certificate. This is why choosing a qualified, accredited solar panel installer in Kent is so important – it is not just about the quality of the work, it directly affects your ability to access the Smart Export Guarantee.

You will also need a smart meter that can record half-hourly export data, which most energy suppliers will arrange as part of the SEG registration process.

How do you apply for the Smart Export Guarantee?

Once your solar panel installation is complete and you have your MCS certificate, you contact your energy supplier to apply for a SEG tariff. You do not have to use the same supplier for your SEG as you do for your electricity import – you can shop around for the best export rate regardless of who your main energy supplier is. This flexibility means you can compare what is on offer and choose the tariff that gives you the best return.

Payments are typically made based on meter readings taken at regular intervals, and many suppliers manage this automatically through smart meter data. Once you are registered, you will receive regular SEG payments without any further action required.

Does battery storage affect SEG payments?

If you include battery storage with your solar panels, you will generally export less to the grid because more of your generation is stored and used within the home. This means lower SEG income but, importantly, greater savings on your electricity bills – and those savings typically have a higher financial value than the equivalent SEG payment, since you are effectively using electricity that you would otherwise have paid retail price for.

The combination of self-consumption savings and SEG income together forms the complete financial picture for a solar installation. The balance between the two will depend on your household usage profile and the size of your battery.

What happened to the Feed-in Tariff?

The Feed-in Tariff closed to new applicants in March 2019. If you had an installation registered before that date, your FiT payments continue under the original terms. If you are installing solar panels for the first time now, the Smart Export Guarantee is the current scheme available for export income.

The SEG does not include a generation tariff – unlike the old FiT, you are only paid for electricity you actually export rather than for everything your system generates. This is why self-consumption is the primary focus of a well-designed modern solar system.

Get MCS-accredited solar installation in Kent with Transcrew

Transcrew is an MCS-accredited solar panel installer serving homeowners across Kent, including Thanet, Canterbury, Maidstone, and the surrounding area. All of our installations are completed to MCS standards, which means every customer we work with is fully eligible to register for the Smart Export Guarantee and receive payment for their surplus generation.

To find out more about solar panel installation in Kent or to arrange a survey and quote, contact Transcrew today.