The British Gas SEG scheme has been one of the most attractive export tariff options available to UK solar generators in recent years.

However, from 6 July 2026, British Gas is making significant changes to its Smart Export Guarantee (SEG) scheme, reducing export payments for larger solar installations.

For many commercial solar owners, farms, schools, warehouses, and industrial facilities, this change could have a substantial impact on annual export revenue and may prompt a review of existing solar tariff arrangements.

What Is Changing Under The British Gas SEG Scheme?

Until now, British Gas has offered an export tariff of 15.1p per kWh for eligible solar installations up to 5MW.

From 6 July 2026, the British Gas export tariff structure will change to:

✓ Systems up to 15kW: 12p per kWh export rate

✓ Systems above 15kW: 8p per kWh export rate

✗ The previous 15.1p per kWh SEG rate for larger systems will no longer be available

While domestic customers may still benefit from a competitive export rate, many commercial solar installations exceed 15kW and will therefore be subject to the lower 8p export tariff.

Why The British Gas Export Tariff Change Matters

The Smart Export Guarantee scheme allows businesses and homeowners to receive payments for excess electricity exported back to the grid.

The value of these payments can play an important role in the financial performance of a solar installation, helping improve return on investment and reduce overall payback periods.

The reduction from 15.1p to 8p represents a significant decrease in export income for larger generators.

For example:

• 100,000 kWh exported annually at 15.1p = approximately £15,100
• 100,000 kWh exported annually at 8p = approximately £8,000

This equates to a reduction of around £7,100 per year in export revenue.

For larger commercial systems exporting several hundred thousand kilowatt-hours annually, the financial impact can be considerably greater.

What Size Is A 15kW Solar System?

While a 15kW solar array may be suitable for larger domestic properties or small businesses, it is relatively small within the commercial solar market.

Many commercial installations are significantly larger, including:

• Manufacturing facilities
• Warehouses and distribution centres
• Farms and agricultural businesses
• Schools and educational campuses
• Retail parks
• Multi-site organisations

As a result, a large proportion of commercial solar owners will fall into the lower export tariff category.

Are SEG Rates Fixed?

One of the most common misconceptions surrounding the SEG scheme is that export rates are fixed for the long term.

In reality, many SEG schemes operate as variable tariffs, meaning suppliers can review and amend rates over time.

As demonstrated by the latest British Gas SEG changes, export payments can increase or decrease depending on market conditions and supplier strategy.

This creates uncertainty for businesses relying on export revenue as part of their solar investment calculations.

Fixed Export Tariffs And Power Purchase Agreements

As export tariff volatility increases, many businesses are exploring alternative export arrangements.

One option is a Power Purchase Agreement (PPA), which can offer greater certainty through fixed or structured export pricing.

Depending on the project and export volumes, a commercial PPA may provide:

✓ Long-term revenue certainty

✓ Fixed export pricing

✓ Protection from future SEG tariff reductions

✓ Improved budgeting and forecasting

✓ Bespoke commercial export agreements

For larger solar installations, fixed export agreements can often provide greater stability than remaining solely dependent on variable SEG schemes.

What Is The Best SEG Rate Available In 2026?

There is no single answer to this question.

The best solar tariff will depend on several factors, including:

• Solar system size
• Annual export volumes
• Domestic or commercial use
• Existing energy supplier
• Battery storage arrangements
• Whether a fixed or variable tariff is preferred

Some of the highest advertised SEG rates are designed primarily for domestic customers, while larger commercial generators often benefit from bespoke export agreements or Power Purchase Agreements.

This makes it increasingly important for businesses to review their export arrangements regularly rather than assuming their current tariff remains the most competitive option.

Should You Review Your Solar Export Agreement?

If your solar installation exceeds 15kW, the latest British Gas SEG changes are a strong reminder of how quickly export rates can change.

Reviewing your current export agreement can help identify opportunities to:

• Improve export revenue
• Secure fixed pricing
• Reduce market exposure
• Improve long-term project returns
• Support future solar investment decisions

With export income forming an increasingly important part of solar project economics, ensuring your export tariff remains competitive is essential.

Speak To Flame Energy About Solar Export Tariffs

At Flame Energy, we help businesses review and compare a range of export solutions, including:

• Smart Export Guarantee (SEG) schemes
• Commercial Power Purchase Agreements (PPAs)
• Fixed export tariffs
• Solar export agreements
• Alternative routes to market

If your organisation has been affected by the latest British Gas SEG rate changes, our team can help assess your current arrangement and explore alternative options that may provide greater long-term value and stability.

Contact Flame Energy today to discuss your solar export requirements and review the export tariff options available for your site.