British Gas SEG Renewable Energy Explained

British Gas SEG (Smart Export Guarantee) pays you for surplus solar electricity your home exports to the grid, at a headline rate of up to 12p per kWh if your import electricity is with British Gas, or 3p per kWh if it is not. The Smart Export Guarantee is a government-backed scheme launched on 1 January 2020 that requires large electricity suppliers to pay small-scale renewable generators for the power they send back.

For a bill-conscious household with solar panels, British Gas is one option among several, and it is rarely the top payer. The best SEG rates in 2026 sit higher, but many of those require you to switch your import supply or use the firm’s own installer. This explainer sets out what British Gas actually pays, who qualifies, how payment works, and how it stacks up so you can decide with confidence.

Free Price Compare sources this from Ofgem’s SEG register and annual report, British Gas’s own tariff pages and the current Ofgem price cap, so you can weigh the export rate against what you pay to import.

Last updated: August 2026

Written by the Free Price Compare editorial team | Reviewed August 2026

How much does British Gas pay per kWh for SEG?

British Gas pays up to 12p per kWh for exported solar electricity if your import electricity supply is also with British Gas, and 3p per kWh if it is not. The higher rate applies to British Gas electricity customers with systems up to 15kW, which covers almost all domestic solar installations. Households that are not British Gas electricity customers, along with developers and some larger or specialist systems, are placed on the Export SEG tariff at 3p per kWh. British Gas restructured its export tariffs in mid-2026, moving away from a single 15.1p headline rate that had applied to eligible smaller systems, so any older figures you see quoted no longer reflect the current domestic offer.

The 12p rate is competitive against a bundled tariff but not the highest available. The average tied SEG tariff paid around 15.39p per kWh in SEG Year 5, while untied tariffs averaged 4.47p per kWh, according to Ofgem. A tied tariff is one that only pays the higher rate if you also buy your import electricity from that supplier.

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What is SEG and how does it differ from the old Feed-in Tariff?

The Smart Export Guarantee (SEG) is a UK government scheme, launched on 1 January 2020, that legally requires electricity suppliers with more than 150,000 domestic customers to offer at least one tariff paying small-scale renewable generators for electricity exported to the grid. It was introduced under the Smart Export Guarantee Order 2019 and is administered by Ofgem, with policy set by the Department for Energy Security and Net Zero. SEG replaced the export element of the Feed-in Tariff (FiT), which closed to new applicants in 1 April 2019 [AUTO-CORRECTED: was March 2019 per https://www.ofgem.gov.uk/environmental-and-social-schemes/feed-tariffs-fit — VERIFY].

The main difference is that SEG pays only for electricity you actually export, measured by a smart meter, whereas the old Feed-in Tariff also paid a generation tariff for every unit you produced regardless of whether you used or exported it. SEG also sets no minimum rate beyond zero, so suppliers compete on price rather than following a single fixed government rate. If you are still on a legacy FiT agreement, you generally keep it; you would only move to SEG if your FiT export terms expire or you switch to a better export deal.

SEG export tariffs come in two main types: fixed-rate tariffs, which pay a set price per kWh for a defined term, and variable or time-of-use tariffs, where the rate can change over time or by time of day. British Gas SEG is a fixed flat-rate tariff, so you receive the same price for every unit exported regardless of when it is sent to the grid. British Gas’s current SEG export rates are **12p/kWh** for systems up to 15kW and **8p/kWh** for systems over 15kW, and British Gas states these are **fixed per kWh** rates on its SEG tariff page, dated 2026.[1]

Do I have to be a British Gas customer to get their SEG tariff?

No, you do not have to be a British Gas customer to join their SEG tariff, but the rate you receive depends on whether British Gas supplies your import electricity. If British Gas supplies your electricity, you automatically get the best SEG export rate of up to 12p per kWh for systems up to 15kW. If you buy electricity from another supplier, you are placed on the Export SEG tariff at 3p per kWh, which anyone with an eligible system can take without switching. Social landlords on the VoidCare scheme with systems up to 15kW are placed on a separate Export VoidCare SEG tariff at 6p per kWh.

This bundling matters for your decision. Taking 3p per kWh as a non-customer is straightforward but low, so it usually only makes sense if you export very little or you value keeping your existing electricity deal. If you want the 12p rate, you would need to move your import electricity to British Gas, and that only pays off if their import prices are competitive for your usage. Weigh the extra export income against any difference in your unit rate and standing charge before switching, and remember you can always compare a rival supplier’s SEG tariff against it.

Thinking about switching for a better export rate?

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What do I need to qualify: smart meter, MCS certificate, export meter?

To qualify for British Gas SEG you need a smart meter capable of recording half-hourly export readings, an MCS-certified renewable system (or an equivalent certification), and the system must be no larger than 5MW. The Microgeneration Certification Scheme (MCS) certificate proves your solar panels or other technology were installed to recognised standards, and Ofgem’s SEG rules require this before a supplier will pay you. Almost all SEG installations are solar PV, at 99.98% of registered systems in SEG Year 5, according to Ofgem.

The smart meter is the part households most often overlook. A standard smart meter measures import; you need one configured to also send half-hourly export data so British Gas knows exactly how much you sent back. If your meter cannot do this, arrange the correct setup before applying. Our guide to British Gas smart meters explains what to check. You will also need your MCS certificate reference, proof of ownership and your bank details to hand when you apply.

• A smart meter set up for half-hourly export readings.
• An MCS certificate (or equivalent) for your solar or renewable system.
• A system of 5MW or less, which covers all domestic installations.
• Proof you own the installation and a UK bank account for payments.

How and how often does British Gas pay me?

British Gas pays SEG export credit quarterly, within 28 days of receiving your export meter reading. Payment is made as credit or a bank transfer once your account is set up and readings start coming through. Setup can take up to 4 weeks from application before payments begin, and British Gas only pays you from the date your SEG application is approved, not backdated to when your panels were installed. That means the gap between installation and approval is unpaid, so it is worth applying promptly after your system goes live.

Payment is based on actual metered export, so a smart meter sending accurate half-hourly readings is what keeps payments flowing on time. If readings do not reach British Gas, payments can stall until the data is resolved. Keep an eye on your account in the first few quarters to confirm export data is being received. Across the whole scheme, £56.97 million was paid to registered installations in SEG Year 5 (April 2024 to March 2025), up from £30.75 million the year before, according to Ofgem.

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Can I still get SEG if I have a battery?

Yes, you can still get SEG if you have a home battery, and a battery can change how much you earn either way. A battery lets you store surplus solar during the day and use it in the evening instead of buying from the grid, which cuts your import bill but can reduce how much you export and therefore your SEG income. On a flat-rate export tariff like British Gas SEG, storing power to use yourself usually saves more than exporting it, because the price you avoid paying to import is higher than most export rates.

The position is different on time-of-use export tariffs offered by some suppliers, where you can charge a battery from cheap grid electricity or solar and export at high-value peak periods. British Gas SEG is a flat-rate tariff, so it rewards steady export rather than clever battery timing. If you have or plan a battery, work out whether maximising self-use or chasing a variable export rate suits your household. You can look at how a rival export tariff pays for surplus energy to compare the approaches. EDF’s current **SEG Export Variable** pays **3.0p per kWh** for surplus electricity exported to the grid, according to EDF Energy’s smart export tariff page, published in **2026**.[1]

Is British Gas the best SEG deal, or should I switch supplier?

British Gas is a solid mid-tier SEG option at up to 12p per kWh, but it is not the best-paying deal on the market in 2026. Higher rates exist, though the top ones usually come with conditions: they may require you to buy your import electricity from that supplier, or they may only be open to customers whose panels and battery were installed by that supplier’s own installer. British Gas was the fourth-most popular SEG tariff in 2024-25, attracting 7.1% of all registrations, according to Ofgem, which reflects its wide availability rather than a market-leading rate.

Whether to switch depends on three things: how much you export, whether the higher rate is tied to switching your import supply, and how competitive that supplier’s import prices are for your usage. A household that exports a lot may earn meaningfully more on a higher tied tariff; a low exporter may find the 3p standalone rate barely differs between suppliers. Because SEG has no minimum rate and tariffs change, check the Ofgem SEG register for the current field before committing. Free Price Compare compares home energy tariffs so you can weigh the import cost alongside the export rate.

Figures are indicative and may change.

How does the export rate compare with what you pay to import?

The SEG export rate you receive is almost always lower than the unit rate you pay to import electricity, which shapes the smartest way to use your solar. Under the Ofgem price cap for 1 July to 30 September 2026, a typical direct debit customer pays an average of 26.11p per kWh for electricity plus a 57.19p daily standing charge, according to Ofgem. Against an export rate of up to 12p per kWh, every unit of solar you use yourself is worth more than a unit you export.

For a bill-conscious household, that gap is the key insight: using solar in the home to displace import electricity saves you around 26p a unit, while exporting the same unit earns you up to 12p. So the priority is self-consumption first, export second, with SEG as a bonus on the surplus you cannot use. Shifting flexible use such as washing, dishwashing or hot water to daylight hours squeezes more value from your panels than chasing the highest export rate alone. The price cap caps unit rates and the standing charge for a typical user, not your total bill, which still depends on how much you use.

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What happens if my SEG application is delayed?

If your SEG application is delayed, British Gas will only pay you from the date the application is approved, so a slow setup means unpaid export in the meantime rather than lost payments once you are live. Setup can take up to 4 weeks, and some households report longer waits while documents or meter data are confirmed. To keep things moving, apply as soon as your system is commissioned, have your MCS certificate and smart meter details ready, and confirm your meter is sending half-hourly export readings. Ofgem says you need a meter capable of providing half-hourly export readings and that your installation and installer must be certified through MCS or an equivalent scheme to apply for the Smart Export Guarantee.

If the delay drags on well beyond the stated timescale and British Gas is not resolving it, you can raise a formal complaint with the supplier first. If it remains unresolved after eight weeks, or you receive a deadlock letter, you can refer it to the Energy Ombudsman, which handles disputes for domestic energy customers free of charge. Keeping copies of your application, certificate and any correspondence makes any escalation quicker.

• British Gas Smart Meters, Accurate Billing & Energy Insights
• Octopus Energy SEG Tariff Explained
• EDF SEG Tariff: Earn from Surplus Renewable Energy Exports
• Go Green with British Gas Solar Panels & Battery Storage
• EDF Energy Smart Export Guarantee | SEG Rates & Payments

Information correct as of 24 August 2026. Prices, tariffs, policy details and providers change frequently, so please check the latest details before making a decision. This article is for general information only and does not constitute financial advice. Free Price Compare is authorised and regulated by the Financial Conduct Authority (FCA).