Full Expensing for business solar PV
Full Expensing 2026 — UK limited companies can deduct 100% of commercial solar capex from corporation tax with no cap. Eligibility, examples...
100% first-year deduction — no upper limit
Income scheme · Updated 12 May 2026
Smart Export Guarantee for businesses
Smart Export Guarantee 2026 guide for UK businesses — best export tariffs, eligibility for 50kWp+ systems, how to register, and how to combine SEG with AIA / Full Expensing tax relief.
Overview
The Smart Export Guarantee is the UK's regulated framework for paying small-scale renewable generators for electricity they export to the public grid. It replaced the Feed-in Tariff for new systems commissioned after 1 April 2019 — but where the FIT paid a fixed government-funded tariff, the SEG is a competitive market mechanism. Each Ofgem-licensed energy supplier with 150,000+ domestic customers is legally required to offer an SEG tariff, but they are free to set the rate as low as zero pence per kWh (in practice, regulatory pressure has lifted floor tariffs above 3p/kWh in 2026).
For a commercial property, SEG is rarely the headline funding route — your year-one tax relief under AIA or Full Expensing will typically be worth 5–8 times your annual SEG revenue. But over a 20-year system life, cumulative SEG income on a well-sized 100kWp system can total £25,000–£70,000 — material money, and unlike tax relief, it is genuinely additional revenue that does not depend on you being profitable in any given year.
Key facts at a glance
| Best 2026 fixed-tariff rate | 15.0p / kWh — Octopus Energy Outgoing Fixed (review monthly) |
| Worst regulated floor | 3.0p / kWh — major suppliers' default SEG tariff |
| Annual income on a 100kWp commercial system | £900 – £3,500 (depends on tariff & export %) |
| Time to register | 4–6 weeks from system commissioning |
| MCS certification required | Yes for systems up to 50kWp; engineering sign-off accepted above |
| Smart meter required | Yes — half-hourly settlement for accurate export readings |
Eligibility criteria
- The system must be installed by an MCS-certified installer (Microgeneration Certification Scheme) up to and including 50kWp capacity.
- Above 50kWp, the system needs an engineering sign-off from a competent person — typically the lead contractor — confirming it meets G99 connection standards.
- Above 1MW, you exit SEG entirely and enter the wholesale market via a Power Purchase Agreement (PPA) — the economics shift significantly.
- You need a smart meter capable of half-hourly export readings. Most SMETS2 meters qualify; older SMETS1 meters may need replacement.
- You must be on a Demand Use of System (DUoS) tariff and have a Distribution Network Operator (DNO) connection agreement under G99 (Engineering Recommendation G99).
- Single-phase domestic meters cannot support SEG for systems above approximately 3.68kWp — commercial properties on three-phase have no such limit.
How to apply
Step 1 — Choose your SEG supplier.
You do not have to take SEG from the supplier of your imported electricity. Many businesses use Octopus Outgoing or Good Energy for SEG while importing from a cheaper commercial supplier like SmartestEnergy or Crown Gas & Power. Compare current rates monthly — they move.
Step 2 — Complete the supplier's SEG application.
Forms vary by supplier but typically require: your MPAN (Metering Point Administration Number), MCS certificate or engineering sign-off, smart meter serial number, and commissioning date.
Step 3 — Provide DNO approval.
Your installer should submit your G99 application before commissioning. Most DNOs (UKPN, Northern Powergrid, SP Energy Networks, Western Power Distribution, Electricity North West, SSEN) require 5–11 weeks for connection approval — factor this into your install schedule.
Step 4 — Provide your smart meter data feed authorisation.
This lets your SEG supplier read your half-hourly export readings.
Step 5 — Receive payments.
Most suppliers pay quarterly into your business bank account. Some pay monthly. Your statement will show kWh exported and the rate applied.
Current SEG supplier rates (2026)
Updated monthly — last refresh 12 May 2026.
| Supplier & tariff | Rate (p/kWh) | Notes |
|---|---|---|
| Octopus Energy Outgoing Fixed | 15.0p / kWh fixed for 12 months | Best fixed rate. Must have Octopus import account. |
| Good Energy Solar Savings | 13.0p / kWh fixed | Good for businesses with strong sustainability ESG positioning. |
| E.ON Next Export Exclusive | 16.5p / kWh | Only available to E.ON Next import customers. |
| British Gas Export & Earn Flex | 6.4p / kWh variable | Higher floor than most variable tariffs. |
| Octopus Outgoing Agile | Half-hourly variable (avg ~12p) | Tracks wholesale price; can spike to 30p+ in evening peaks. |
| EDF Export Variable | 5.6p / kWh | Reliable, no minimum import condition. |
| So Energy Export Plus | 8.0p / kWh | Open to non-So Energy customers. |
| OVO Energy Export | 5.0p / kWh | Standard variable, no fixed option. |
Watch-outs and pitfalls
- Tariffs are not fixed for life. Variable SEG tariffs can drop without notice. Fixed-tariff SEGs are usually 12 months — set a reminder to renegotiate at renewal.
- Self-consumption beats export every time. A unit you generate and use yourself saves you ~30p/kWh (your import rate). The same unit exported earns 3p–15p. Size the system for self-consumption first, export second.
- DNO export limits can constrain SEG revenue. If your DNO grants only 50kW export capacity but you install 200kWp, the export inverter will curtail generation when self-consumption is low. You'll still receive SEG on what you do export, but the unconstrained projection will be optimistic.
- VAT treatment changed in 2022. SEG income is now zero-rated VAT for individuals, but commercial customers may need to charge standard-rate VAT depending on their status. Take HMRC advice.
Stacking with other grants and reliefs
Most successful 2026 commercial solar projects use a combination of schemes — this is where independent advice earns its keep. Smart Export Guarantee for businesses typically combines well with:
- Full Expensing for business solar PV — 100% first-year deduction — no upper limit
- Annual Investment Allowance for business solar — Up to £1 million per year, 100% first-year deduction
- Industrial Energy Transformation Fund for solar PV — 30-50% of project capex (typically £100k-£14m awards)
Sources & further reading
Related schemes
Tax relief Tax relief Capital grant Capital grant
Other relevant grants & reliefs
Annual Investment Allowance for business solar
AIA 2026 guide — how UK businesses claim 100% first-year tax relief on commercial solar PV up to £1m. Eligibility, calculation worked exampl...
Up to £1 million per year, 100% first-year deduction
Industrial Energy Transformation Fund for solar PV
IETF 2026 guide — match-funded grants of 30-50% for energy-intensive industry in England, Wales, NI. Eligible sectors, application windows, ...
30-50% of project capex (typically £100k-£14m awards)
Public Sector Decarbonisation Scheme for solar PV
PSDS 2026 — 100% capital grant funding for public sector solar PV. Schools, NHS, councils, universities, central government. Application win...
100% of project capex (up to £10m+ for large estates)
FAQs
Frequently asked questions
What is Smart Export Guarantee for businesses?
The Smart Export Guarantee is the UK's regulated framework for paying small-scale renewable generators for electricity they export to the public grid. It replaced the Feed-in Tariff for new systems commissioned after 1 April 2019 — but where the FIT paid a fixed government-funded tariff, the SEG is a competitive market mechanism. Each Ofgem-licensed energy supplier with 150,000+ domestic customers is legally required to offer an SEG tariff, but they are free to set the rate as low as zero pence per kWh (in practice, regulatory pressure has lifted floor tariffs above 3p/kWh in 2026).
Is the scheme open for applications in 2026?
As of May 2026, the scheme's funding status is: Ongoing — no closing date. We re-check application windows monthly — if this is critical to your planning, request an eligibility check for the current programme status.
How much can a UK business get?
Typical award range: 3p–15p per kWh exported (2026 fixed tariffs). The size of any individual award depends on project capex, sector eligibility, match funding available and the scheme's per-applicant cap.
Who administers the scheme?
Ofgem (regulator); licensed energy suppliers (payers). Applications are submitted through the administrator's process — we link the relevant gov.uk and scheme pages at the bottom of this guide.
What are the biggest pitfalls applicants fall into?
Tariffs are not fixed for life. Variable SEG tariffs can drop without notice. Fixed-tariff SEGs are usually 12 months — set a reminder to renegotiate at renewal. Self-consumption beats export every time. A unit you generate and use yourself saves you ~30p/kWh (your import rate). The same unit exported earns 3p–15p. Size the system for self-consumption first, export second. DNO export limits can constrain SEG revenue. If your DNO grants only 50kW export capacity but you install 200kWp, the export inverter will curtail generation when self-consumption is low. You'll still receive SEG on what you do export, but the unconstrained projection will be optimistic.
Check if your business qualifies
Free 60-second eligibility check tells you whether Smart Export Guarantee for businesses applies — and which other schemes can stack.
Run free eligibility check Or call 0800 246 1132