Smart Export Guarantee
Mandatory scheme requiring large electricity suppliers to pay for surplus solar generation exported to the grid.
Typical 2026 SEG tariffs: 4p–15p per kWh exported. Best rates: Octopus Outgoing Agile (variable, half-hourly tracked), Octopus Outgoing Fixed, OVO SEG. Worst rates: legacy supplier minimum-compliance tariffs at 3p–5p.
Permanent scheme. Tariff rates change frequently — annual review of supplier offers is sensible.
In detail
The Smart Export Guarantee replaced the Feed-in Tariff in 2020 and is now the standard mechanism by which UK businesses earn revenue from surplus solar generation. The scheme is structurally simple — large suppliers must offer at least one tariff for export — but tariff levels vary by an order of magnitude between best and worst suppliers. As of 2026, the best SEG rates sit around 12p–15p per kWh, with Octopus Energy's Outgoing Agile tariff (variable, tracking the half-hourly wholesale market) often the highest annualised return for systems with daytime-skewed generation. The worst SEG rates sit at the regulatory minimum, around 3p–5p, offered by suppliers who comply with the obligation but don't compete for export business. For commercial systems sized appropriately to demand (i.e. 70%–90% self-consumption), SEG income is a useful but secondary economic line — typically 5%–10% of total system value over 25 years. For oversized systems generating significant surplus, the calculation shifts: at high export volumes, a Power Purchase Agreement with a corporate offtaker often pays materially more than SEG, sometimes 50%–100% better. We model both for any system where export is expected to exceed 30% of generation.
Who qualifies
Owners of solar systems up to 5MW capacity, with MCS-certified installations below 50kW. Above 50kW, MCS is not strictly required for SEG eligibility but most suppliers expect equivalent quality assurance. Export must be metered with a half-hourly export meter.
What it does
Obliges electricity suppliers above a threshold (currently those with 150,000+ domestic customers) to offer at least one tariff for excess solar generation exported to the grid. Tariff rates and structures are set by each supplier.
Worked example
On a 250kWp commercial system with 80% self-consumption: 49MWh per year exported. At 8p/kWh average SEG: £3,920 per year. At 12p/kWh (best 2026 rates): £5,880 per year. Lifetime export income (25 years, modest tariff growth): £100k–£175k. Useful but secondary to self-consumption savings, which are typically £35k–£50k per year on the same system.
Tax treatment / process
- Install MCS-certified system (or equivalent for >50kW) with half-hourly export meter
- Apply to chosen SEG supplier with MCS certificate, MPAN, and export meter details
- Sign export agreement specifying tariff and review terms
- Receive payments quarterly or monthly based on metered export volumes
Pitfalls to watch
- SEG rates from your import supplier are usually NOT the best rates — switching the export contract separately is often worth it
- Some suppliers tie SEG to import tariff — restricts your ability to switch import supplier
- Half-hourly export metering required — adds a one-off cost
- Tariff often resets after 12–24 months — long-term certainty is limited
- PPAs can pay materially more than SEG for larger systems — worth comparing for >100kW systems
Best paired with these finance structures
Frequently asked questions
What is the Smart Export Guarantee (SEG)?
Which suppliers offer the best commercial SEG rate in 2026?
How much does SEG contribute to a commercial solar business case?
Can a commercial solar PV system with a battery claim SEG?
Smart Export Guarantee: maximising export income for commercial solar
The Smart Export Guarantee (SEG) is the UK government scheme that requires licensed electricity suppliers (with 150,000+ customers) to offer export tariffs to eligible generators, including commercial solar installations. Unlike its predecessor Feed-in Tariff (FiT), SEG rates are market-set rather than government-fixed — which means shopping around matters.
For commercial solar owners, SEG income is a bonus revenue stream on top of the primary benefit of electricity bill reduction. For a 200kWp commercial installation exporting 30–50% of generation, SEG income might add £3,000–6,000/year. Not transformative, but worth optimising.
SEG eligibility for commercial solar
| Eligibility criterion | Detail |
|---|---|
| System size | Up to 5MW installed capacity (commercial installations well within limit) |
| MCS certification | System must be installed by an MCS-certified contractor and hold MCS certificate |
| Smart export meter | Half-hourly smart meter (SMETS2) required at point of export — most DNO connections now include this |
| Ownership requirement | Export income goes to the owner. PPA systems: developer owns and keeps SEG income. HP/green loan systems: your business keeps SEG from day one. |
| Existing FiT recipients | Cannot receive both FiT (for installations registered pre-April 2019) and SEG simultaneously |
SEG rates comparison 2025
| Supplier | SEG tariff rate | Tariff type | Notes |
|---|---|---|---|
| Octopus Energy — Outgoing Agile | 4–15p/kWh (variable) | Half-hourly variable | Follows wholesale prices; best in summer/evening peaks; most flexible |
| Octopus Energy — Outgoing Fixed | 4p/kWh | Fixed | Simple; predictable; lower than Agile average |
| E.ON Next — Export | 3p/kWh | Fixed | Standard rate; simple application |
| British Gas | 3p/kWh | Fixed | Major supplier; straightforward |
| EDF Energy | 3p/kWh | Fixed | Major supplier |
| OVO Energy | 3p/kWh | Fixed | Standard offering |
| Utilita | 2p/kWh | Fixed | Lower rate |
For commercial installations, Octopus Agile export typically delivers the best returns for installations with afternoon export peaks (schools, offices, warehouses) when wholesale prices are highest. For installations with consistent daytime exports (manufacturing sites running overnight), a fixed rate may be more predictable.
Maximising SEG income for commercial installations
Battery storage to shift export timing
A battery system can absorb midday excess generation and export to grid during 4–7pm peak price periods when Agile export rates may reach 15p/kWh vs 4p at midday. This can triple SEG income on systems with significant excess generation.
Demand response and time-of-use tariffs
Consider pairing your SEG export arrangement with a time-of-use import tariff. Import cheaply at night (e.g. 7p/kWh), export from battery at peak (15p/kWh). The arbitrage spread can add £5,000–15,000/year for a 200kWp+ installation with battery.
Half-hourly smart metering
SEG requires export metering, and Agile tariffs require half-hourly data. Ensure your system specification includes an SMETS2-compatible smart meter at the point of connection — some older commercial properties may need a meter upgrade.
SEG application process
Step 1: Obtain MCS certificate
After installation, your installer provides the MCS installation certificate. This is the primary document needed for SEG application.
Step 2: Choose supplier and apply
Apply directly to your chosen SEG-licensed supplier using their online portal or by calling their business team. You do not need to use the same supplier for import and export.
Step 3: Smart meter installation
If not already fitted, the supplier arranges installation of a smart export meter (usually free for SMETS2). The meter reads export in half-hourly intervals.
Step 4: Receive payments
SEG payments are typically made monthly or quarterly. Keep records of generation and export data for your accounting records and AIA/tax calculations.
SEG and PPA arrangements
A critical point for businesses evaluating PPA vs ownership: under a PPA, the developer owns the installation and therefore receives all SEG export income. As the site occupant, you have no entitlement to SEG payments. Over 20 years, this SEG income — which could be £20,000–60,000 on a 200kWp+ system — goes to the developer, not to your business.
This is one of several reasons why solar ownership (via green loan or asset finance) delivers substantially better long-term value than a PPA for most commercially profitable UK businesses with access to credit.
UK SEG supplier rates for commercial solar in 2026
Not all Smart Export Guarantee tariffs are equal. The scheme mandates that large suppliers offer at least one SEG tariff, but the rates differ enormously between suppliers — from the regulatory minimum of 2p/kWh up to variable Agile rates that average 12p–18p/kWh on good generation days. For a 200kWp commercial system exporting 40,000–60,000 kWh per year, the difference between the worst and best supplier is worth £4,000–£9,600 per year, or £80,000–£192,000 over a 20-year project life.
The table below reflects the principal SEG tariff products available to UK commercial solar operators in 2026. Rates change frequently — always confirm current rates directly with the supplier before switching.
| Supplier | Tariff name | Rate (2026) | Type | Best for |
|---|---|---|---|---|
| Octopus Energy | Outgoing Agile | Variable: avg 6p–18p/kWh | Half-hourly dynamic, tracks wholesale | Systems with midday-heavy export profiles; EV/battery optimisation |
| Octopus Energy | Outgoing Fixed | 15p/kWh (Q2 2026) | Fixed per kWh | Predictable income; smaller systems; set-and-forget |
| OVO Energy | OVO SEG Export | 4p–6p/kWh | Fixed per kWh | OVO existing energy customers seeking combined billing |
| EDF Energy | EDF SEG tariff | 3p–5p/kWh | Fixed per kWh | Minimum compliance; best avoided for income optimisation |
| E.ON Next | E.ON SEG | 3p–4p/kWh | Fixed per kWh | Minimum compliance tariff; switch away for higher income |
| British Gas | British Gas SEG | 3p–5p/kWh | Fixed per kWh | Low-rate compliance tariff; not competitive for income |
| Scottish Power | SP SEG | 3p–4p/kWh | Fixed per kWh | Minimum compliance; avoid for income maximisation |
| Ripple Energy | Ripple SEG | 5p–8p/kWh (variable) | Variable linked to green market | Emerging supplier; competitive for green-premium income |
OVO SEG tariff: what commercial solar operators need to know
OVO Energy's SEG tariff (sometimes called OVO SEG Export) sits in the mid-tier of the UK SEG market — paying more than minimum-compliance suppliers but typically below Octopus's best fixed or Agile rates. In 2026, OVO SEG rates have been running at 4p–6p/kWh on their standard export product. OVO offers an advantage if you already hold an OVO electricity supply contract, as export income can be offset directly against your supply invoice — simplifying administration for commercial premises with multiple meters.
To apply for OVO SEG as a commercial solar operator, you need an MCS-certified installation, a SMETS2 or equivalent smart export meter capable of half-hourly recording, and your export capacity must be within the licence parameters. Systems above 50kW on a G99 connection require export meter confirmation and are eligible under the SEG regulations.
OVO SEG vs Octopus: the financial comparison
On a 200kWp commercial system exporting 50,000 kWh/year: OVO at 5p/kWh generates £2,500/year. Octopus Fixed at 15p/kWh generates £7,500/year — a £5,000/year difference or £100,000 over 20 years. For most commercial operators, switching from OVO to Octopus is worth doing even accounting for any administrative change.
Commercial SEG: eligibility above 50kW
Commercial solar systems above 50kW are fully eligible for SEG but must meet additional metering requirements. A G99 export meter (smart, half-hourly capable) must be in place and registered with your DNO. Most suppliers require written confirmation of G99 commissioning and meter point registration before opening an SEG account.
How to maximise SEG income from a commercial solar installation
| Strategy | Impact | Complexity | Best for |
|---|---|---|---|
| Switch to Octopus Outgoing | £3,000–£9,000/year uplift on 200kWp vs minimum tariffs | Low — online application | All systems, especially midday-heavy generators |
| Install battery storage to shift export timing | Reduces excess midday export; shifts to evening peak pricing | Medium-high — £80k–£150k for 100kWh | Sites with Agile import + Agile export pricing |
| Optimise self-consumption ratio first | Consuming more on-site (at 23p–30p/kWh) beats exporting at 5p–15p/kWh | Low — operational change + tariff review | All systems with flexible on-site demand |
| Agile export with half-hourly optimisation | Variable rates can exceed 30p/kWh in evening peak periods | Medium — requires smart inverter + monitoring | Systems with demand flexibility and monitoring |
| Annual supplier review | Market rates move; best rate in 2023 may not be best in 2026 | Very low — annual admin task | All commercial solar operators |
For most commercial solar operators, the single most impactful action is switching to a high-rate SEG supplier if you are currently on a minimum-compliance tariff (below 5p/kWh). The switch typically takes 4–8 weeks and requires no physical changes to the installation — just a meter data transfer and supplier application.
OVO Energy SEG rates 2026: current tariff and how it works
OVO Energy's Smart Export Guarantee (SEG) tariff — officially called the OVO Export Tariff — is one of the most-searched SEG products in the UK. As of 2026, OVO offers a variable SEG rate that tracks wholesale electricity prices, marketed as their 'Plunge' rate alongside a fixed export tariff option. The current OVO SEG rate for commercial customers is published on their website and updated quarterly.
| OVO SEG product | Rate (2026 indicative) | Type | Meter requirement | Commercial eligible? |
|---|---|---|---|---|
| OVO Export Tariff (standard) | 4.1p–5.5p/kWh | Variable (quarterly reset) | Smart meter (SMETS2) | Yes — eligible for commercial-scale systems |
| OVO Plunge Rate | Variable — follows half-hourly market | Half-hourly settlement | Smart meter + HH data | Large commercial systems (100kWp+) typically better served |
| OVO Drive Anytime (EV) | N/A for pure solar | Fixed rate add-on | EV charger + smart meter | Only if EV charging also installed |
OVO Energy is not obligated to offer the best SEG rate — they must offer a rate above 0p/kWh, but their actual commercial rate is market-driven. In practice, OVO's standard export tariff is broadly comparable to British Gas and E.ON, but typically below Octopus Energy's best available rates. Always compare at the point of application as rates change quarterly.
How to apply for OVO SEG as a commercial customer
OVO Energy's SEG application for commercial systems requires: (1) a valid MCS certificate for the solar installation, (2) a smart meter (SMETS2) capable of half-hourly export metering, (3) the system to be your import supplier (OVO must be your electricity supplier for the export site), (4) application via OVO's online portal with system generation capacity declared. OVO processes commercial SEG applications within 5–10 working days. If OVO is not your import supplier, you must switch to OVO first before accessing their SEG tariff — or choose a SEG provider who is not your import supplier (some offer this).
SEG rates by supplier: complete comparison 2026
The SEG market in 2026 comprises around 20 licensed exporters. The table below compares the main providers on current rates, meter requirements, and commercial eligibility. All rates are indicative — check each provider's website for current published tariffs before applying.
| SEG provider | Indicative rate 2026 | Rate type | Import supplier required? | Commercial eligible? |
|---|---|---|---|---|
| Octopus Energy (Outgoing Octopus) | 7.5p–15p/kWh | Fixed or Agile (half-hourly) | No — any import supplier | Yes — including large commercial |
| OVO Energy (Export Tariff) | 4.1p–5.5p/kWh | Variable quarterly | Yes — must be OVO import customer | Yes |
| E.ON Next (Juice Exporter) | 4.0p–5.0p/kWh | Fixed | No — open to all | Yes |
| EDF Energy | 3.9p–4.8p/kWh | Fixed quarterly | Yes — EDF import customers preferred | Yes — subject to system size |
| British Gas (Export & Earn) | 3.5p–4.5p/kWh | Fixed | Yes — BG import customers | Yes — commercial applications via business team |
| Scottish Power (SP Smart Export) | 3.5p–4.5p/kWh | Fixed | Yes — SP import customers | Yes |
| Shell Energy (Export Plus) | 3.0p–4.0p/kWh | Fixed | Yes — Shell import customers | Limited — check eligibility |
| Minimum guaranteed rate (all Tier 1) | >0p/kWh | Must be above zero | N/A | All licensed exporters must offer |
The key insight: Octopus Energy's Outgoing Octopus product (variable half-hourly and fixed options) consistently offers the highest rates for commercial solar, and critically does not require you to switch your import supply to Octopus. This makes Octopus the default best-value SEG choice for most UK commercial solar installations in 2026 unless there is a specific reason to remain with another provider.
Commercial SEG vs residential SEG: what changes at scale?
| Aspect | Residential SEG (below 50kWp) | Commercial SEG (above 50kWp) |
|---|---|---|
| MCS certificate | Required | Required (G99 also required for connection) |
| Metering requirement | Smart meter (SMETS2) | Half-hourly (HH) metering typically required |
| Maximum export limit | Unrestricted (subject to DNO) | May be export-limited by DNO (G99 condition) |
| Rate negotiation | Published tariff — take it or leave it | Larger sites (>250kWp) can negotiate bespoke rates |
| SEG application process | Online portal — self-service | Business energy team — may require site visit |
| Time to first payment | 4–8 weeks from application | 6–12 weeks from application (HH metering setup) |
| DNO export limit interaction | Rarely constrained | May affect export volume if DNO sets curtailment |
Maximising commercial SEG income: practical steps
(1) Choose Octopus Agile export if your system has a smart inverter capable of half-hourly settlement — this typically adds 2–6p/kWh over fixed tariffs by capturing midday peak prices. (2) Size battery storage to hold export during low-price periods and release at high-price periods — a 100kWh battery can add £1,500–£3,000/year to SEG income on a 250kWp system. (3) Apply for a G100 (managed export) flexible connection rather than a fixed export limit — this avoids curtailment at peak solar output. (4) Review your SEG tariff annually — the market is competitive and switching is straightforward as long as your MCS certificate remains valid.
OVO SEG for commercial solar: common questions
What is the current OVO SEG rate for commercial customers?
OVO Energy's export tariff for commercial solar customers is published quarterly on the OVO Business website. As of 2026, the standard OVO commercial export rate is in the 4.1p–5.5p/kWh range. This is broadly in line with E.ON and EDF but typically below Octopus Energy's Outgoing Octopus product. The rate is variable and resets every quarter based on wholesale market prices. OVO's Plunge rate (half-hourly variable) may offer higher rates at peak solar output times for very large commercial systems.
Can I use OVO SEG if OVO is not my electricity supplier?
No — OVO Energy requires you to be an OVO import (electricity) customer to access their SEG export tariff. This differs from Octopus Energy, which allows you to export on Outgoing Octopus regardless of your import supplier. If you want OVO SEG, you must first switch your electricity supply to OVO Business. Before doing this, compare the combined import + export economics of OVO against the alternative of staying with your current import supplier and exporting on Octopus Outgoing Octopus — the import tariff difference may outweigh the OVO SEG rate advantage.
OVO SEG Tariff 2026: Rates, Eligibility & Commercial Application
OVO Energy is one of the UK's largest Smart Export Guarantee purchasers, and the most-searched SEG supplier on commercial solar queries. This section covers OVO's current export tariffs, how they compare for commercial operators, and what to do if OVO isn't the right fit for your system size.
OVO SEG rates: what commercial operators are actually paid
| OVO tariff | Export rate | Eligibility | Best for |
|---|---|---|---|
| OVO SEG Standard | 4.0p/kWh | Standard smart meter; <5MWp; MCS certified | Predictable baseline export income |
| OVO Kaluza Flex SEG | 4–24p/kWh | Kaluza smart plan; half-hourly metering; EV charger or battery | Sites with battery storage dispatching at peak |
| Octopus Agile Export | 2–30p/kWh | Half-hourly meter; South/Midlands DNO area preferred | Large exports with flexible dispatch |
| E.ON Next SEG | 3.5p/kWh | Standard smart meter; <5MWp | Simplest admin, fixed rate |
| Octopus Fixed Export | 4.1p/kWh | Octopus customer; <5MWp | OVO alternative with same predictability |
| Energy broker bespoke | 3–7p/kWh | >50kWp; direct EPEX/N2EX wholesale deal | Large commercial systems; aggregator PPAs |
Rates as of June 2026. SEG rates are set by each supplier and reviewed quarterly. Always check the current rate on the supplier's website before contracting.
Is OVO SEG available for commercial properties?
OVO Energy's SEG product is available to any eligible export connection — commercial or residential — provided the system meets the Ofgem criteria. However, there are practical constraints for larger commercial sites:
Commercial systems that qualify for OVO SEG
- ✓ Installed capacity <5MWp (AC)
- ✓ MCS-certified installation and equipment
- ✓ Smart export meter in place (half-hourly capable)
- ✓ OVO holds the import supply contract for the site
- ✓ System installed after 1 January 2020 (post-FiT)
Practical limitations for commercial operators
- ⚠ OVO must be your import supplier (switch required if not)
- ⚠ OVO Kaluza Flex requires OVO's smart tariff — not always available commercially
- ⚠ Systems >50kWp may achieve better rates via energy broker or aggregator PPA
- ⚠ OVO does not publish a bespoke commercial SEG product — standard rates apply
How to apply for OVO SEG: 4-step process
OVO SEG vs Octopus for commercial solar: which pays more?
For a 200kWp rooftop system exporting approximately 80,000 kWh per year (40% export rate), the income difference between suppliers is significant:
| Supplier & tariff | Rate | Annual income (80,000 kWh) | Admin burden |
|---|---|---|---|
| OVO Standard SEG | 4.0p | £3,200 | Low — monthly bill credit |
| OVO Kaluza Flex | avg 9p* | £7,200* | Medium — smart dispatch needed |
| Octopus Agile Export | avg 7–12p* | £5,600–£9,600* | High — half-hourly optimisation |
| Octopus Fixed Export | 4.1p | £3,280 | Low — monthly statement |
| Energy broker / aggregator | 3–7p | £2,400–£5,600 | Low — broker manages dispatch |
* Variable rate tariffs depend on grid demand and time of export. Averages based on 2025 data. Requires battery storage or smart load-shifting to capture peak rates.
SEG and commercial solar finance: how they interact
SEG income affects which finance structure delivers the best net return. Under a Power Purchase Agreement, the PPA provider typically retains the SEG income (they own the electricity). Under a green loan or hire purchase (you own the system), you keep 100% of SEG payments — which is why ownership structures often outperform PPAs over a 10-year horizon once SEG income is factored in.
Quick comparison: SEG income by ownership structure
- You own (green loan / HP): 100% of SEG income retained — adds £2,000–£8,000/yr on a 100–250kWp system
- PPA: SEG retained by PPA provider — typically reflected in a slightly lower unit rate for you but you don't see the export income directly
- Operating / finance lease: SEG rights depend on the lease agreement — clarify with the lessor before signing
Frequently asked questions: OVO SEG
Can a commercial property apply for OVO SEG?
Yes, provided OVO holds the site's import supply contract, the system is MCS-certified, and total installed capacity is below 5MWp. OVO does not publish a separate commercial SEG product — commercial operators receive the same Standard rate (4.0p/kWh) as residential customers unless they qualify for the Kaluza Flex tariff.
What is OVO's current SEG rate in 2026?
OVO's guaranteed Standard SEG rate is 4.0p/kWh as of June 2026. The Kaluza Flex tariff offers up to 24p/kWh at grid peak times but requires OVO's smart energy plan and a compatible battery storage system. Rates are reviewed by OVO quarterly — always check their website for the current published rate before contracting.
Should a 300kWp commercial system use OVO SEG or an energy broker?
At 300kWp+ with significant export volumes, a specialist commercial energy broker or aggregator often negotiates a better blended export rate (3–7p depending on grid conditions) than OVO's standard SEG, and handles the half-hourly settlement administration. OVO SEG is simpler but best suited to systems below 100kWp with straightforward export profiles.
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