Solar, Smart Export Guarantee and Social Housing: Getting It Right

As more social housing providers install solar panels, we have been getting an important question from both landlords and tenants.

Who benefits from the surplus electricity exported back to the grid? And how does Smart Export Guarantees work for social housing?

Households can earn money for the surplus solar electricity through the Smart Export Guarantee (SEG). While this offers a potential income stream, how SEG works in social housing is still being developed.

To explore this, we recently organised explainer sessions attended by landlords and tenants, followed by a roundtable discussion bringing together housing associations, local authorities and retrofit teams to share experiences and discuss what is working and what still needs clarity.

Solar is scaling quickly

• One landlord has installed over 800 panels in the last 12 months.
• Many new-build homes now include solar as standard.
• Retrofit programmes through the Optimised Retrofit Programme continue to expand.

With solar installed at scale, SEG policies have started to take shape with landlords making decisions about who claims the income and how it is managed.

Different approaches across the sector

Our discussions highlighted three main models currently in use:

• Tenant-claimed: Tenants apply for and receive SEG payments.
• Landlord-retained: Income is retained and reinvested into further decarbonisation or energy improvements.
• Shared or third-party models: Working with third parties or using split-benefit arrangements.

There is no single right model. Flexibility allows innovation but clarity is essential

One point drew strong agreement:

The worst outcome is when no one claims the SEG at all.

In that situation, surplus electricity is exported back to the grid with no financial benefit reaching either tenants or reinvestment programmes.

For households experiencing fuel poverty, even relatively small payments can make a difference

The practical reality

Although SEGs sound straightforward, the process can be complex.

Issues raised in our sessions included:

• Paperwork and supplier requirements.
• Managing documentation when tenancies change.
• Staff time required to support tenants and provide information.

Several providers said they would value shared templates and clearer guidance when developing SEG policies.

Fairness and transparency

The conversation also raised important questions about equity.

• Export levels vary depending on whether homes have battery storage.
• Grid capacity differs by area.
• Some properties cannot have solar due to orientation or structural constraints.
• Some also questioned whether additional income linked to already upgraded homes risks widening inequities, particularly where other properties cannot have solar due to structural constraints.

Where landlords retain SEG income, transparency is crucial. Tenants should understand:

• How the model works
• Who receives the payments
• How income is being reinvested

There was strong agreement that solar and SEGs must sit within a wider strategy. A fabric-first approach remains essential to maximise impact on energy bills.

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Learning together

Through these sessions, landlords shared draft policies, tenant communications and challenges. Strong examples from providers who already allow tenants to claim SEGs gave direction to others still developing their approach.

One landlord attending an early session had no SEG policy in place. Within a week, they had developed and implemented one. That demonstrates the value of creating space for shared learning.

What happens next?

Solar is here to stay. The focus now is ensuring that exported value is not lost.

SEGs may not generate large sums in every case, but managed well, they can support affordability and reinvestment.

TPAS Cymru will continue to support landlords in developing clear, inclusive SEG policies that work for tenants and landlords. We will also continue to provide a private, supportive space for staff to share draft policies and working documents so that learning is shared and no one is left behind.

To support this work, we have developed a step-by-step guide, with support of SERO, for landlords and tenants to consider when setting up or reviewing Smart Export Guarantee arrangements.

Download the SEG step-by-step guide here.

If you would like any support, guidance, or further information about our work on Smart Export Guarantees in social housing, please do get in touch, we would be very happy to help.