Category: Pricing

Smart Export Guarantee vs PPA Export Tariff

If your PPA generates more than you can use, where does the surplus go and at what price? SEG and PPA export tariffs compared.

Where surplus generation goes

A PPA system generates kWh. You consume some directly. The rest gets exported back to the grid. Where the revenue from that export goes depends on the PPA structure.

Three common arrangements

SEG kept by off-taker

Most UK on-site PPAs leave the SEG export revenue with the off-taker. You register with an Ofgem-licensed supplier for SEG at the contracted rate (3-15 p/kWh in 2026).

SEG kept by PPA provider

Some providers structure to keep SEG income for themselves — usually offset by a slightly lower headline tariff. Read the contract closely.

SEG shared

Some structures split SEG income, e.g., 70:30 in favour of the off-taker.

Tariff comparison

Source	Year 1 rate	Settlement
PPA tariff (you pay)	11-15 p/kWh	Monthly
SEG (you receive on export)	3-15 p/kWh	Quarterly typical
Wholesale day-ahead reference	~5-9 p/kWh	Half-hourly

What to negotiate

• Clarify SEG revenue assignment in the PPA
• Keep flexibility to switch SEG provider over the 20-year contract
• Ensure export metering is independent of provider control
• Push for export-side optimisation (battery storage) to time-shift surplus