UK Smart Export Guarantee Order 2019 Guide: Understanding the 5 MW Capacity Cap

Key Takeaways

• The Smart Export Guarantee Order 2019 applies to installations with a maximum capacity of 5 megawatts of total installed capacity (August 2026).
• The Order provides for payments to generators of small-scale low-carbon electricity generation (August 2026).
• SEG licensees must submit annual reports to Ofgem by April 14th in respect of the preceding SEG year (August 2026).
• Ofgem publishes an annual report on SEG operations by May 31st in respect of the preceding SEG year (August 2026).

What is the Smart Export Guarantee (SEG) Order 2019?

The Smart Export Guarantee Order 2019 (S.I. 2019 No. 1005) establishes the framework for export payments to small-scale low-carbon electricity generators across Great Britain. This Order provides for payments to be made to generators of small-scale low-carbon electricity generation. It is the statutory parent instrument for the Smart Export Guarantee (SEG) scheme. The Order came into force on the day after the day on which it was made (August 2026).

The table below summarizes key provisions of the Smart Export Guarantee Order 2019:

| Licensee Reporting| Submit report to Ofgem by April 14th, including number of eligible installations and total SEG payments | Figures as of August 2026.

What is the maximum capacity for SEG eligibility?

The Smart Export Guarantee Order 2019 sets a clear limit on the size of installations that can benefit from the scheme. The specified maximum capacity is 5 megawatts of total installed capacity. This means that if your installation's total capacity exceeds 5 MW, it will fall outside the statutory scope of the SEG Order. This capacity cap ensures the scheme focuses on small-scale generation.

What are the regulatory duties for SEG licensees and Ofgem?

The Smart Export Guarantee Order 2019 outlines specific responsibilities for both SEG licensees and the Authority, which is Ofgem.

Licensee Duties: A SEG licensee must submit a report to the Authority on or before 14th April in each year. This report must contain information in respect of the preceding SEG year. The required data includes the number of eligible installations for which the licensee made SEG payments in the preceding SEG year. It also includes the total amount of SEG payments made by the licensee in the preceding SEG year.

Ofgem's Regulatory Functions: The Authority must publish on its website a list of SEG licensees for the following SEG year. This publication is required on or before 1st February in each year. Furthermore, the Authority must publish on its website a report on the operation of the SEG in respect of the preceding SEG year. This annual report is due on or before 31st May in each year. The Authority also has powers to publish guidance in connection with the administration of the SEG.

How does the SEG Order 2019 relate to solar installations?

Understanding the Smart Export Guarantee Order 2019 is crucial for anyone planning or operating solar installations in Great Britain, particularly those intending to export surplus electricity to the grid. The 5 MW capacity cap directly impacts the scale of projects eligible for SEG payments.

For domestic solar installations, the SEG provides a mechanism for receiving payments for exported energy. If you are considering a domestic solar project, you may also need to consult guides on UK domestic solar permitted development. Commercial solar projects also fall under the SEG, and understanding the Order's provisions is vital for project planning and financial forecasting. Information on UK commercial solar permitted development can provide further context. Even specialized installations like UK carpark solar canopies must adhere to these regulations if they aim for SEG eligibility.

When sizing your solar system, consider the SEG's capacity limits. You can use a solar sizing tool to estimate your energy needs and potential export capacity, ensuring your design aligns with the Order's requirements.

How we verified this information

The information presented in this guide is drawn directly from the Smart Export Guarantee Order 2019 (S.I. 2019 No. 1005). We accessed the official legislation document via legislation.gov.uk on August 23, 2026, to ensure accuracy and direct reference to the statutory provisions.

Understanding the Scope and Limitations of the SEG Order

While the Smart Export Guarantee Order 2019 covers a broad range of small-scale low-carbon generation, it has specific limitations. Installations with total installed capacity exceeding 5 MW fall outside the statutory scope of the SEG Order. This means larger projects would not be eligible for SEG payments under this specific legislation. Additionally, anaerobic digestion installations must comply with specific sustainability and feedstock criteria under the Order. These details highlight that while the SEG provides a significant framework, its application is defined by precise statutory boundaries.