The Feed-in Tariff pays you twice: once for every unit your panels generate, and once for units you send back to the grid. The Smart Export Guarantee, or SEG, is the newer scheme that pays only for export, measured by a meter.
You can hold both, in the right combination. Ofgem allows a system to receive FIT generation payments and a SEG export tariff at the same time, for the same capacity. What you cannot do is take FIT export and SEG export together.
Key Points
- Ofgem states that generators can receive FIT generation payments and SEG export payments at the same time, for the same generating capacity.
- To claim SEG you must first opt out of FIT export payments, by contacting your FIT licensee. You do not have to opt out of FIT generation payments.
- Ofgem says collecting SEG and FIT export payments at the same time knowingly could constitute fraud.
- Your SEG supplier does not have to be the company that pays your FIT, and does not have to be your electricity supplier.
- To be eligible for SEG you need a suitably certified installation and installer, an export meter capable of half hourly measurements, and an export MPAN.
- Ofgem says MCS is the usual certificate, and that other schemes may be treated as equivalent.
- SEG tariffs, payment amounts and contract length are set by each supplier. Ofgem's only floor is that a SEG tariff must always remain above zero.
- SEG licensees are not required to pay until they have your actual export meter reading.
- Deemed export under FIT is a fixed assumption, not a measurement. Ofgem's co-location guidance gives the deemed factor for solar PV as 50%, available where the installation is 30 kW or less.
- There is a limit on switching. Ofgem says you cannot change your FIT export selection before the first anniversary of your participation. After that, no more than once every 12 months.
Common Misconceptions
- I have to choose between FIT and SEG. Only for export. FIT generation and SEG export can run together.
- Moving to SEG loses my generation tariff. It does not. Ofgem is explicit that you do not have to opt out of FIT generation payments.
- SEG must come from my current supplier. It does not. Ofgem says your SEG licensee does not need to be the same company as your electricity supplier.
- Metered export always pays more. Not always. Say you use most of your generation at home, or you have a battery. A 50% deemed assumption can then be worth more than what you really export.
- I can switch back and forth whenever I like. No. Ofgem limits changes to your FIT export selection to once every 12 months, and not before the first anniversary.
- SEG pays a rate set by the government. It does not. Suppliers set their own tariffs. The only rule Ofgem sets is that the rate stays above zero.
Real-World Advice
Setting a customer up with their energy supplier after handover is part of the job for us. One Polegate customer said the aftercare was excellent, including the set up with his energy provider, after bad weather during his installation. Another Polegate customer told us we explained how surplus energy is fed back into the network.
Both were new installations rather than FIT systems moving to SEG.
UK-Specific Considerations
Deemed export is a guess, in both directions. Ofgem's guidance says deemed export is used where it is not possible or practical to measure export by meter. For solar PV the deemed factor is 50% of generation. If you actually export far more than half, measurement should pay better. If you use most of your generation at home, the assumption may already suit you.
A smart meter changes your export position. Ofgem's guidance says export meter readings should be provided where an export meter is installed. Ofgem's generator page says deemed export payments then stop, replaced by metered export payments. So getting a smart meter is a decision about export, not just about billing.
Battery owners should think twice about metered export. A battery is designed to reduce export. If you fit one and then move onto measured export, you may be paid for a much smaller number of units.
Two schemes, two contracts. Your FIT terms are in your statement of FIT terms. Your SEG terms are in a separate written confirmation from your SEG licensee. Read both.
Shop around, and keep shopping. Ofgem encourages applicants to compare suppliers and to review tariff options regularly. Rates and contract terms differ, so we do not quote a figure here. Check what is live at the time.
Unaccredited capacity sharing your meter. Ofgem sets out two options if you have added capacity that is not FIT accredited and it shares a meter. Opt out of FIT export and take SEG across the whole capacity. Or leave SEG alone and pro rate your FIT export payments.
Certification for older systems. SEG asks for evidence that the installation and installer were suitably certified. For a 2010 to 2015 system that is normally the original MCS certificate, so find it before you apply.
FIT export against SEG export
| FIT deemed export | FIT metered export | SEG export | |
|---|---|---|---|
| How the amount is decided | Fixed percentage of generation, 50% for solar PV | Export meter reading | Export meter reading, half hourly capable meter |
| Who sets the rate | Set under the FIT scheme by eligibility date | Set under the FIT scheme by eligibility date | Set by each SEG supplier, must stay above zero |
| Who pays you | Your FIT licensee | Your FIT licensee | Any SEG licensee you choose |
| Available with FIT generation payments | Yes | Yes | Yes, after you opt out of FIT export |
| Needs an export MPAN | No | Yes | Yes |
| Suits you if | You use most of what you make | You export a lot and the meter proves it | You export a lot and want to shop around |
When This Isn't Right For You
- You export very little and your deemed 50% is already generous.
- You cannot get an export meter or an export MPAN at the property.
- You changed your FIT export selection within the last 12 months, so you cannot change it again yet.
- Your installation was never certified in a way SEG will accept, and no equivalent evidence exists.
Before You Spend Money
- Work out roughly what you export. Your inverter monitoring, or a clamp meter reading over a normal week, is enough to see whether you are above or below half.
- Find your MCS certificate. SEG applications ask for evidence of certification for the installation and installer.
- Check whether you have an export MPAN. Ofgem lists it as an eligibility requirement. Your supplier can confirm it.
- Ask your FIT licensee how to opt out of FIT export, and what date it takes effect.
- Compare SEG offers before you opt out of anything. Do not leave one arrangement with nothing lined up.
- If you are also planning a battery, decide the order. A battery changes how much you export, which changes which export route suits you.
Frequently Asked Questions
Q: Can I keep my FIT generation payments and get SEG export payments?
A: Yes. Ofgem says generators can receive FIT generation payments and SEG export payments at the same time for the same capacity. You must first opt out of FIT export payments.
Q: How do I opt out of FIT export?
A: By contacting your FIT licensee. Ofgem also limits how often you can change: not before the first anniversary of participation, and then no more than once every 12 months.
Q: Do I need a smart meter for SEG?
A: You need an export meter capable of half hourly measurements, and an export MPAN. That is commonly a smart meter, but ask your chosen SEG supplier what they will accept.
Q: Does my SEG supplier have to be my electricity supplier?
A: No. Ofgem says your SEG licensee does not need to be the company that supplies your electricity. It does not have to be the company paying your FIT either.
Q: Is metered export always better than deemed export?
A: No. Deemed export for solar PV is 50% of generation, whatever you really send out. Say you use most of your electricity at home, or you have a battery. The deemed figure can then be worth more.
Summary
FIT generation and SEG export are designed to work together. Keep the generation tariff, which is the part tied to your original accreditation, and treat export as a separate decision you can review. Moving from deemed export to a measured SEG tariff pays off when you genuinely export a lot. It can cost you if you use most of your own electricity or have a battery. Work out your real export first, line up an offer, then opt out of FIT export. Remember you can only change that selection once every 12 months.