If you’ve installed solar panels, or you’re planning to, you’ve probably come across some confusing jargon, especially when it comes to how you can get paid for the energy you generate! Two of the biggest acronyms in the world of UK solar incentives are FiT and SEG. Let’s break them down so you can understand what they are, how they work, and which one still applies today.
What is the Feed-in Tariff (FiT)?
The Feed-in Tariff was the UK government’s flagship renewable energy incentive programme introduced in April 2010. It aimed to kickstart residential solar adoption by paying homeowners for producing and exporting clean electricity.
How FiT Worked
- You received a payment for every kilowatt-hour (kWh) of electricity you generated, whether you used it yourself or not.
- Plus, you earned an export tariff for any excess electricity sent back to the grid.
- The rates were fixed and guaranteed for up to 20 years.
Why It Was Popular
The FiT scheme was extremely generous and made installing solar panels financially attractive. Homeowners could make significant returns on investment, and some even received annual payouts in the hundreds or thousands of pounds. It turned thousands of UK homes into mini power stations and helped launch the early solar boom.
Why It’s No Longer Available
As the solar market matured and panel prices dropped, the government decided to close the FiT scheme to new applicants in April 2019. If you signed up before then, you’re still receiving your payments until your contract ends. But if you’re installing solar panels today, you won’t be eligible for FiT, and that’s where SEG comes in.
What is the Smart Export Guarantee (SEG)?
The Smart Export Guarantee replaced the FiT scheme in January 2020. It’s the new way to get paid for the electricity you don’t use and export back to the National Grid, but with a few important differences!
Key Differences from FiT
- No generation payment: SEG only pays you for exported energy, not what you generate and use.
- Rates vary by supplier: Unlike FiT’s fixed rates, SEG is competitive. Some suppliers offer as little as 3–5p per kWh, while others go up to 20p+.
- No fixed contract length: You’re free to switch suppliers and hunt for better SEG tariffs whenever you like.
How SEG Works
All UK energy suppliers with over 150,000 customers are legally required to offer an SEG tariff. To qualify, your system must:
- Be MCS-certified (or equivalent)
- Have a smart meter (or export meter) to track what you send back to the grid
You can shop around and choose the most competitive SEG tariff from different energy providers. Some even offer variable rates that pay more at peak times, making solar battery storage even more valuable.
SEG and Solar Batteries: A Perfect Match
Because SEG only pays for exported electricity, many homeowners are now investing in solar battery storage to keep more of their energy instead of sending it back to the grid. Why export your clean energy for 5p/kWh when you can store it and avoid paying 30p/kWh to buy it back later?
With a smart solar setup, including panels, inverters, and batteries, you can maximise your home’s energy independence and get the most out of SEG payments too.
Quick Recap: FiT vs SEG
| Scheme | Available? | Pays For | Rate Type | Who’s Eligible |
|---|---|---|---|---|
| Feed-in Tariff (FiT) | ❌ Closed since 2019 | Generation & Export | Fixed for 20 years | Only pre-2019 solar adopters |
| Smart Export Guarantee (SEG) | ✅ Open | Export only | Variable – set by supplier | All new solar installations |
Should You Still Go Solar in 2025?
Absolutely. Even without the FiT, installing solar panels in the UK is more affordable than ever. With SEG payments, lower hardware prices, and rising energy costs, going solar can still significantly reduce your electricity bills — especially when paired with battery storage.
At Nano Protech, we help homeowners design and install MCS-certified solar panel systems tailored to your energy usage and property. Get an instant online quote, expert guidance, and full support from start to finish by emailing us at info@nano-pro.tech, filling in our online form here, or giving us a call on 0800 861 1582. We can help design a custom renewable energy solution that works for you!