What Solar Owners Need to Know About Export Payment Options: PPA (Power Purchase Agreement) vs SEG (Smart Export Guarantee):

Written By Leanne Li

When it comes to monetising the electricity your solar system generates, understanding your export payment options is crucial. Two primary routes exist for solar owners in the UK: the Smart Export Guarantee (SEG) and Power Purchase Agreements (PPA).

PPA vs SEG

For many businesses, particularly those with larger solar installations, the SEG is becoming less practical. Suppliers are increasingly hesitant to accept applications for systems over 50 kWp.

For sites exporting more than 50,000 kWh per year, PPAs often provide a more attractive and reliable solution.

With a PPA, businesses benefit from:

  • Higher, fixed income – payments are predictable and not subject to the fluctuations of SEG rates.

  • REGO benefits – receive Renewable Energy Guarantees of Origin certificates alongside financial returns.

  • Long-term stability – safeguard your revenue against sudden policy or supplier changes.

Looking ahead to 2026, PPAs are emerging as the preferred choice for businesses aiming to maximise returns from larger solar systems.

If you’re unsure which option best suits your site, our team of experts can review your setup and advise on the most effective route for your business.

Leanne Li
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