CurveBlock
The Smart Export Guarantee (SEG) requires certain UK electricity suppliers to offer export tariffs to small-scale generators, providing a statutory backstop for payments when a direct buyer is not available. SEG applies to the export of electricity from qualifying low-carbon microgeneration installations; suppliers set their own tariffs and terms subject to Ofgem’s obligations and reporting. Because tariffs vary between suppliers, and eligibility is defined by generation technology and size, project-level revenues depend on the tariff available and the amount of measured exported energy.
SEG payments are typically smaller and more volatile than fixed long‑term Contracts for Difference or typical corporate Power Purchase Agreements (PPAs). Crucially, SEG requires compliant metering and accurate export measurement, so projects must have equipment that records exported volumes in a way that meets supplier requirements. Where developers can negotiate a PPA with a private off‑taker, that route often yields more predictable pricing, but PPAs involve negotiation, credit assessment and sometimes aggregation to reach commercially attractive terms.
For fractional investors in rooftop solar or small field-scale projects, SEG can form part of the revenue mix but investors should understand its limitations: variable tariff levels, exposure to export patterns, and dependence on metering. When assessing digital fractional shares in small renewable projects, examine how the project’s revenue stack combines SEG, PPAs and other routes to market, and whether the platform discloses metering, tariff and counterparty details.