Quick and simple small business guide to Smart Export Guarantee (SEG) Tariffs
Small businesses across Great Britain are increasingly turning to renewable energy - not just to cut costs, but to unlock new revenue streams. One of the most simple ways to earn money from your solar energy system is through the Smart Export Guarantee (SEG).
Here’s how it works, how much you could earn and how EDF and Contact Solar can support your business.
What is the SEG
The Smart Export Guarantee (SEG) is a UK government‑backed scheme that requires energy suppliers to pay small businesses for excess renewable electricity produced that can be exported back to the grid.
EDF Energy is a Mandatory SEG Licensee, meaning we’re approved by the government to offer SEG tariffs to eligible customers.
SEG vs Feed-In Tariff (FiT)
The SEG replaced the older Feed‑in Tariff (FiT) in 2020 and came with several key differences:
Payment Structure:
- FiT paid for generation and export, meaning you earned money for every unit you produced, even if you used it yourself.
- SEG only pays for the amount of electricity exported back to the grid.
Rates:
FiT had fixed, government-set rates.
- SEG rates are set by suppliers, creating a competitive market and more choice for customers.
Who’s eligible for a SEG tariff?
To qualify for a SEG tariff, you'll need:
- A renewable technology system with capacity up to 5MW or up to 50kW for Micro-CHP:
- Solar photovoltaic (PV)
- Wind
- Hydro
- Micro combined heat and power (CHP)
- anaerobic digestion (AD)
2. A smart meter or half-hourly electricity meter and must not already receive payments under the Feed In Tariff (FIT) Scheme or already receive SEG payments from another SEG Licensee
3. You need to show that your installation and installer are certified through the microgeneration certification scheme (MCS) or a scheme accredited as equivalent, such as the Flexi-Orb renewables scheme.
4. You must be a small business in Great Britain (England, Scotland, Wales). Northern Ireland have separate export schemes
Have SEG tariff rates gone up or down over time?
SEG rates have seen significant variation since the scheme’s launch in January 2020.
However, there has been a general rise in the rate at which suppliers are willing to pay exporting businesses for their excess energy as competition and technologies have improved.
- Early SEG tariff rates sat close to 3-6p/kWh for mainstream suppliers
- By 2026, multiple suppliers offer rates between 14-16p/kWh for business properties, indicating a clear upward shift in premium tariff offerings
The main factors driving these rate rises include:
- Ofgem reports: suppliers have adjusted their offers as transparency and accountability have increased in the SEG market.
- Increased competition: greater numbers of suppliers offering SEG tariffs means the amount of premium and exclusive SEG tariffs has risen as suppliers attempt to differentiate themselves from the rest of the market. Find out more about EDF’s exclusive Export 12m tariff.
The amount suppliers are willing to pay small businesses with SEG tariffs often increases with more and stricter eligibility criterion.
Examples of this are:
- Whether you’re an existing customer with that supplier
- Whether you’re looking to fix the rate the supplier pays you for your excess energy or willing to accept a variable rate
Are SEG tariffs different for residential vs small business customers?
SEG tariff eligibility is legally defined by technology, certification, metering and capacity rather than property type. However, because rates are supplier-determined, SEG tariffs for residential and small businesses vary due to having been tailored to certain needs of residential and small business customers.
Why are residential rates generally higher than small business rates?
- Loyalty incentives and bundled products
Suppliers generally offer a higher export rate to customers who purchase a bundle of products or services. For example, EDF’s Export Exclusive 12m residential tariff is only available to customers who purchase a combination of solar or battery solutions with EDF. This type of bundled offer is generally not yet available to business customers as most rent rather than own their commercial property.
2. Market size
Residential properties make up a larger share of the SEG customer base. Therefore, there are greater opportunities and incentives for suppliers to provide specialised products, generally with higher export rates to residential customers than to the smaller market of SEG-eligible small businesses.
3. Readiness for SEG requirements
Residential properties are more likely to align naturally with SEG requirements.
Households typically have:
- Standardized microgeneration certification scheme (MCS) installations
- Smart meters capable of half‑hourly export readings
- Predictable consumption patterns that suit suppliers’ smart export tariff designs.
Small businesses are more likely to vary in characteristics, often having:
- Older metering
- Larger or more bespoke systems
- Daytime loads that reduce export potential
Despite this, there are types of small businesses that are more SEG-ready than others. For example:
Offices and professional services
- Electricity demand is usually lower during peak daytime solar generation
- Buildings often have standard roof structures, making solar installations straightforward
- Energy usage tends to be predictable, improving export consistency
- Smart meters and modern electrical systems are commonly already in place
Small businesses with warehouses, storage units and distribution centres
- Large, unobstructed roof areas ideal for solar panels
- Limited energy usage during sunlight hours
- High likelihood of consistent export volumes
Agricultural and rural businesses
- Large roof surfaces on barns, sheds and storage buildings
- Seasonal or off‑peak electricity usage, increasing daytime export potential
- Rural locations often suited to larger solar installations
- Renewable energy already commonly adopted within the sector
EDF SEG tariffs – competitive options for small businesses
Our Export 12m tariff is competitively priced at 15p per kWh of energy, ranking in the top 3 rates available on the market.
Export 12m
Exclusive to EDF electricity customers
- 15p per kWh for the energy you export
- 1-year fixed tariff - for peace of mind
- No exit fees - you're free to cancel or switch to another provider at any time
- View Export 12m's eligibility criteria
- View Export 12m's terms and conditions
SEG Export Variable Value
Exclusive to EDF electricity customers
- 5.6p per kWh for the energy you export
- Variable tariff, so the export price we pay can go up or down
- No exit fees - you're free to cancel or switch to another provider at any time
- View the full terms and conditions (Applicable to new sales from 10 February 2023)
SEG Export Variable
Available to anyone, whether you're an EDF customer or with another supplier
- 3.0p per kWh
- Variable tariff - so the export price we pay can go up or down
- No exit fees - you're free to cancel or switch to another provider at any time
- View the full terms and conditions (Applicable to new sales from 10 February 2023)
Already an EDF SEG Tariff customer?
If you're already registered for one of our SEG tariffs for your small business, we'll send you a reminder when your reading or contract is due.
The reminder will advise you what reads are required and what you need to do. We'll then check all the details, validate your meter reading(s) and make a payment in accordance with your terms and conditions.
What details you'll need to submit a meter reading
- Your EDF small business account number eg. A-12345678. You will be able to find this on your latest invoice
- Your postcode
- Your total active export smart meter read
Discover Contact Solar for support with solar installations
At EDF we want to support your journey towards a fully sustainable and resilient business. Through Which? Trusted Trader Contact Solar, who are part of the EDF family, you'll gain access to our trusted solar panel solutions designed specifically for your business needs.
By investing in your small business’ sustainable future with Contact Solar, you’re guaranteed to receive:
- 5-star customer service
- Nationwide UK coverage
- UK lowest-price guarantee
- Full in-house technical support for the lifetime of your system
Get started today by getting a free, no-obligation quote and take the first step towards a cleaner, more sustainable future.
