Most homeowners on the old Feed-in Tariff should be cautious about switching because FiT generation payments can be valuable and may not be easily replaced. SEG can be useful for export payments, but comparing Feed-in Tariff vs SEG can help you make the right choice based on the terms, export assumptions, smart meter setup and current tariff options.

The Feed-in Tariff isn’t the relic most people think it is. According to the government’s own 2026 consultation response, the scheme still supports around 870,000 generators across Great Britain, of which 829,000 are domestic solar installations.

Many of those households are sitting on generation rates that were locked in for up to 25 years, are index-linked annually, and rise with inflation.

Some rates are significantly more valuable than any other available option, and you can’t access them when installing solar today.

The question of whether to switch any part of that arrangement to the Smart Export Guarantee deserves careful thought rather than a quick decision.

Key Takeaways on Feed-in Tariff vs SEG:

• The Feed-in Tariff is closed to new applicants, but existing contracts remain active and continue to pay.
• FiT pays for both generation and export; SEG pays for exported electricity only.
• You can switch your FiT export payments to SEG while keeping your FiT generation payments, but it requires careful planning.
• Switching to metered export (required for SEG) means you cannot return to the deemed 50% export under FiT.
• Check with your FiT licensee before making any changes.

What Was the Feed-In Tariff?

The government introduced the Feed-in Tariff scheme on 1 April 2010 to promote the uptake of small-scale renewable electricity generation.

It required licensed electricity suppliers to make two separate payments to eligible generators: a generation payment for every unit of electricity produced by the installation, and an export payment for every unit sent back to the grid.

FiT contracts run for up to 25 years from the installation date. Generation tariff rates were locked in at the time of accreditation and are adjusted annually for inflation. From April 2026, the inflation indexation metric for the Feed-in Tariffs changed from the Retail Price Index (RPI) to the Consumer Price Index (CPI). This lowers the annual subsidy uplifts for generators and reduces the overall scheme costs for UK consumers.

For homeowners who joined early, particularly between 2010 and 2012 when generation rates were at their highest, the FiT remains a genuinely valuable arrangement.

The generation payment alone, which continues regardless of what you do with export, can represent a significant annual income.

What is the Smart Export Guarantee?

The Smart Export Guarantee (SEG) launched on 1 January 2020 as the successor to the FiT for new solar installations.

It requires energy suppliers with more than 150,000 domestic customers to offer at least one export tariff paying a rate above zero per kWh.

Unlike the FiT, it has no generation payment component and pays only for electricity exported to the grid, based on actual metered readings.

Suppliers set rates competitively, and they can vary widely from 1p/kWh on compliance-only tariffs to 25p/kWh on the most competitive qualifying products.

SEG is open to legacy FiT customers for the export portion of their payments, subject to meeting eligibility requirements.

Feed-in Tariff vs SEG: Key Differences

Feature	Feed-in Tariff	Smart Export Guarantee	Why it matters
Open to new applicants	No, closed April 2019	Yes	New solar owners cannot access FiT
Generation payment	Yes, paid per kWh generated regardless of use	No	FiT generation payments are a major source of value for legacy customers
Export payment	Yes, paid per kWh exported (or deemed)	Yes, paid per kWh exported	Both schemes pay for export, but at different rates and structures
Deemed vs metered export	Deemed (50% of generation) available for systems under 30 kW without an export meter	Metered only. Actual half-hourly smart meter data required	Critical distinction
Rate structure	Index-linked annually; locked in at accreditation	Competitive, variable, set by supplier	FiT rates are predictable; SEG rates can change
Supplier choice	Must use a FiT licensee	Can use any eligible SEG supplier	SEG offers more supplier flexibility
Smart meter requirement	Not required for deemed export	Required	Installing a smart meter removes the option to return to deemed FiT export
Risk of losing benefits	Generation payments lost if you leave FiT entirely	N/A	Leaving FiT to join SEG fully is irreversible for most customers

Can You Have Feed-in Tariff vs SEG at the Same Time?

Not for the same payment type on the same installation. You can’t receive FiT export payments and SEG export payments simultaneously for the same system.

However, you can opt out of your FiT export payments and switch them to SEG, while retaining your FiT generation payments. This is a partial switch, and it’s the arrangement most commonly worth considering for legacy FiT customers.

To do this, you contact your FiT licensee and ask to opt out of FiT export payments. Your generation payment continues unchanged. You then register for an SEG tariff with a supplier of your choice.

The critical caveat is that once you have a smart meter installed and it records export data, you can no longer receive deemed export payments under FiT.

Ofgem guidance for generators notes that deemed export, calculated as a percentage of the electricity generated by the installation, is only available for installations without an export meter.

Should You Switch from Fit To SEG?

The answer depends almost entirely on three variables: how much you actually export, your current FiT export rate, and whether you already have a smart meter.

If You Don’t Have a Smart Meter

You’re likely receiving deemed export payments. The government sets the exact percentage for each technology type each year (usually 50% for all technology types, except 75% for hydro).

Before doing anything else, calculate whether your actual export is likely to be above or below that 50% assumption.

If you’re at home during the day and self-consume most of your solar generation, your actual export could be well below 50%, meaning deemed payments are paying you for electricity you never actually exported. Switching to metered SEG in that case would reduce your export income.

If You Do Have a Smart Meter

You’re already receiving metered FiT export payments rather than deemed payments, and the deemed option is no longer available to you in any case.

The question then becomes whether your current FiT export rate is competitive when you compare it with the best available SEG rates.

FiT export rates for early installations are typically in the 5–7p/kWh range after annual indexation; SEG export rates from competitive suppliers currently range from 12p to 25p/kWh, depending on eligibility.

Warning: Don’t cancel or change a legacy Feed-in Tariff arrangement without confirming the financial impact with your FiT licensee or supplier.

When SEG Might Be Better

Switching your FiT export payments to SEG is worth considering if:

• Your actual export volume is meaningfully below the 50% deemed assumption, and you’re already on a smart meter. In such a case, deemed is no longer available to you, and a competitive SEG rate will outperform the FiT export rate.
• Your FiT export rate is in the 5–7p/kWh range, typical for mid-to-later FiT contracts, and you can access a SEG tariff at 12p/kWh or above. The difference of 1,500 kWh of annual export is approximately £75–£270 per year.
• You have added solar panel batteries and want to use a time-of-use SEG tariff to maximise the value of peak-period exports. You must note the co-location rules around battery storage and FiT, which you should confirm with your FiT licensee before making any changes.

When Staying on Fit Might Be Better

Don’t switch if any of the following apply:

• Your deemed export payments are covering more than you actually export. If you’re home during the day, run appliances when the sun shines, and self-consume 70% or more of your generation, the 50% deemed assumption is working in your favour. Switching to metered SEG would reduce your export income.
• You have an early FiT contract with high generation rates. The generation payment is the most valuable part of the FiT for early customers and is completely unaffected by your export activity, but changing other parts of your arrangement could have unintended consequences. Always confirm with your FiT licensee first.
• You’re close to the end of your FiT contract. The disruption and administrative effort of switching may not be worth it for a short remaining term.

Worked Example: Fit Customer Considering SEG

The household: Solar installed in 2013. 3.5 kWp system. Annual generation approximately 3,000 kWh. Currently on deemed FiT export (no smart meter).

FiT generation rate: approximately 13 p/kWh (indexed from the original rate). FiT export rate: approximately 5.5p/kWh.

Current annual FiT income:

• Generation payment: 3,000 kWh × 13p = £390
• Deemed export (50% of 3,000 kWh = 1,500 kWh): 1,500 × 5.5p = £82.50
• Total: £472.50

Scenario A — Switch export to SEG, keep generation payment:

Actual export is 1,200 kWh (household is home during the day and self-consumes more than 50%). SEG rate: 12p/kWh.

• Generation payment retained: £390
• SEG export: 1,200 × 12p = £144
• Total: £534. This is better by £61.50, but only because the SEG rate outweighs the lower actual export volume

Scenario B — Same switch, but actual export is only 800 kWh:

• Generation payment retained: £390
• SEG export: 800 × 12p = £96
• Total: £486. This is marginally better, but the deemed payments were covering 1,500 kWh

Scenario C — Actual export is 1,700 kWh (household mostly out during the day):

Generation payment retained: £390

SEG export: 1,700 × 12p = £204

Total: £594. This is clearly better than staying on the deemed FiT export

Note: These figures are illustrative. Use your own generation data, actual FiT rates from your licensee, and current SEG offers before making any decision.

Questions To Ask Before Switching

Before making any change to a FiT arrangement, get clear answers to the following:

• Will I lose my generation payments? (You should not if you’re switching export only.)
• Will I permanently lose deemed export payments? (Yes, and you cannot return to deemed once you have a smart meter.)
• Can I keep FiT generation payments and move export only to SEG? (Usually yes, but confirm with your FiT licensee.)
• Is the switch reversible? (Switching from deemed to metered is not reversible.)
• What export meter readings do I need? (You’ll need a SMETS2 smart meter or a compatible SMETS1 with export readings enabled.)
• What happens if I change suppliers later? (Your FiT generation payments are tied to your FiT licensee, not your import supplier. SEG export payments are with your chosen SEG supplier and will need re-registering if you switch.)

Common Mistakes

Assuming that switching to SEG means leaving the FiT entirely. You can switch only the export portion and keep the generation payments.

Installing a smart meter without understanding that it removes the deemed export option. Once a smart meter is installed and recording export, the deemed FiT export is no longer available.

Switching without calculating the actual export volume. If you self-consume more than 50% of your generation, deemed export may be paying more than metered export would.

Not notifying the FiT licensee before making changes. According to Ofgem, you must report any modifications to your installation, including the addition of a battery, to your FiT licensee. Failure to do so can affect payment eligibility.

The biggest mistake legacy FiT customers make is treating this as a simple rate comparison. They see 12p SEG vs 5p FiT export and think the decision is obvious. But they haven’t accounted for whether their deemed payments are covering more than they actually export, or what happens when they install a smart meter and can’t go back. The generation payment is almost always the most valuable part, so protect that first — Garry Tang, Energy tariff specialist.

Final Thoughts on Feed-in Tariff vs SEG

The Feed-in Tariff and the Smart Export Guarantee aren’t competing products for most legacy solar owners, but complementary ones.

The FiT generation payment, locked in at accreditation and rising with inflation, is the part worth protecting. The export payment is the part worth questioning, particularly if you already have a smart meter and your actual export volume justifies a switch.

The decision isn’t complicated once you have the right numbers in front of you: your current FiT export rate, your actual or estimated annual export volume, and the best available SEG rate you can access.

For many households on mid-period FiT contracts exporting a meaningful volume, switching export to SEG while retaining the generation payment is straightforward and financially sensible.

For households on early, high-rate contracts who self-consume most of their generation, the status quo is likely better. It’s worth remembering that it’s never sensible to make changes without checking with your FiT licensee first.

Feed-in Tariff vs SEG FAQs

Can I Switch Back to Fit Export Payments After Moving To SEG?

You can switch between FiT export payments and SEG export payments in principle, but only if you remain on a deemed basis under FiT.

This requires not having an export-capable smart meter. Once a smart meter is installed and recording export, you cannot return to deemed FiT export payments.

Does Switching Export to SEG Affect My Fit Generation Payments?

No. FiT generation payments are entirely separate from export payments, and switching the export portion to SEG won’t affect them.

Are Fit Payments Taxable?

FiT generation and export payments are generally tax-free for domestic installations used for personal purposes. For commercial-scale or multi-site arrangements, seek professional tax advice.

What If My Fit Licensee Goes Out of Business?

Ofgem regulates this scenario. If your FiT licensee fails, you should not be financially disadvantaged. Your new licensee is obligated to cover any shortfall in payments.

I Added Battery Storage After Joining Fit. Does That Affect Anything?

Possibly. Ofgem requires you to notify your FiT licensee if you install battery storage, as it can affect how export is measured and whether deemed export can continue.

Sources and References

• Department for Energy Security and Net Zero – Changes to inflation indexation in the Feed-In Tariffs (FiT) scheme: government response
• Ofgem – Guidance for Generators
• Ofgem – Generator Guidance & FAQs