Smart Export Guarantee for UK farm solar in 2026

Smart Export Guarantee (SEG) is the regulatory framework that replaced the Feed-in Tariff (FiT) for new UK solar installations from January 2020 onwards. For farm-building solar, SEG provides the income stream for any kWh exported to the grid rather than consumed on-site. The headline tariffs sit between 4p and 15p/kWh in 2026 — a wide range that materially affects total project economics. Here’s the detailed picture.

How SEG works

SEG is a legal requirement on UK electricity suppliers above a certain customer threshold (currently suppliers with 150,000+ customers) to offer at least one SEG-eligible tariff to customers exporting renewable electricity. Smaller suppliers can opt in voluntarily. The tariff structure is set by each supplier independently — Ofgem regulates the framework but doesn’t dictate rates. To qualify, your install needs: MCS commercial certification (we provide); SEG-compatible smart meter (typically SMETS2 or HH-capable AMR); and a contract with an SEG-offering supplier (often, but not always, the same supplier providing your import electricity).

Best 2026 SEG tariffs for UK farms

As of early 2026, the strongest SEG tariffs available to commercial UK customers are: Octopus Outgoing Agile (variable rate tracking wholesale prices, averaging 11–15p/kWh through the year); Octopus Outgoing Fixed (typically 8–10p/kWh fixed); E.ON Next Export Exclusive (variable rates, 8–12p/kWh typical); Good Energy Solar Export (10–12p/kWh fixed); SO Energy Solar Export Plus (9–11p/kWh fixed). The variable tariffs (Outgoing Agile particularly) reward farms that can shift export to peak grid demand periods — useful if you have battery storage or controlled load shifting.

The poor SEG offers to avoid

Several major UK suppliers offer SEG at rates below 5p/kWh — often because they’re meeting the regulatory minimum rather than competing for customers. EDF Export (recently 3–5p/kWh), British Gas Export Reward (4–6p/kWh historically), Scottish Power’s standard SEG (variable, often 4–7p/kWh). For commercial farm installs exporting significant volumes, the difference between a 5p tariff and a 12p tariff on 50,000 kWh of annual export is £3,500/year — material to overall returns. Always shop around and switch SEG provider if your tariff sits below 8p/kWh.

How to apply for SEG

The process is straightforward once your install is commissioned: (1) we provide the MCS commercial certificate at commissioning; (2) confirm your SMETS2 smart meter is communicating with your supplier (most are by default); (3) submit the SEG application to your chosen supplier with the MCS certificate and meter details; (4) supplier responds within 4–6 weeks confirming tariff and start date; (5) export payments arrive quarterly or monthly depending on supplier. We handle the application as part of our standard project handover for any client who wants us to.

Variable vs fixed SEG tariffs

Variable SEG tariffs (Octopus Outgoing Agile, E.ON Next Export Exclusive) track wholesale electricity prices half-hourly. Real average rates over 2024–2025 ran 11–15p/kWh for farms exporting during peak demand windows (afternoons and early evenings) and dropped to 4–8p/kWh during overnight or low-demand periods. For farms with PV-only exports (no time-shifting), variable rates average roughly 10–12p/kWh year-round — comparable to fixed. For farms with battery storage that can time-shift export to peak demand, variable rates can deliver 13–16p/kWh effective — meaningfully better than fixed.

Fixed SEG tariffs offer predictability — the same rate per kWh regardless of when you export — at typically 8–11p/kWh. For farm businesses building financial models with clear annual income lines, fixed can be the right choice for the predictability alone. For farms running active energy management or battery-based time-shifting, variable wins.

SEG and self-consumption — the trade-off

Every kWh you export under SEG is one you didn’t self-consume at grid retail prices. Grid retail typically runs 24–28p/kWh for UK commercial supplies; SEG tops out around 15p. So self-consumption is always more valuable than export — the maths only flips if your retail tariff is unusually low or your SEG tariff is unusually high. For dairy parlours, intensive livestock and poultry farms with 80%+ self-consumption ratios, SEG is a useful but small component of total returns (typically 8–15% of annual saving). For arable farms with seasonal load profiles, SEG can be 30–45% of annual saving — and choosing the right SEG supplier becomes much more material to overall economics.

Battery storage and SEG income

Battery storage interacts with SEG in two ways: (1) by storing summer-generation surplus for autumn drying-season self-consumption, battery reduces total kWh exported under SEG (good for sites with high retail tariffs); (2) by time-shifting export to high-tariff windows under variable SEG, battery can lift effective SEG rates from 10p to 13–15p/kWh. The right battery strategy depends on the relative gap between your retail tariff and best available SEG rate — we model both scenarios in every proposal where battery storage is being considered.

Switching SEG provider

If your current SEG provider is paying below 8p/kWh, switch. SEG providers don’t have to be the same as your import electricity supplier. The switch process: notify your existing SEG supplier 30 days before; sign up with the new supplier; the new SEG arrangement starts on the next billing cycle. There’s no penalty for switching. We routinely advise farm clients to review SEG providers annually and switch if better offers exist — particularly for variable-rate clients where the effective rate depends on how well the supplier’s tariff matches export timing.

What this means for your project

For most farm installs, SEG income is real but secondary to self-consumption value. Aim for an SEG tariff above 8p/kWh; ideally 11p+ if you’re considering battery storage. Track your effective SEG rate quarterly — if it’s underperforming, switch. And factor SEG income into your 25-year financial model conservatively (we typically model 9p/kWh average for fixed tariffs over the 25-year asset life, allowing for tariff changes and contract renegotiation).