Catalyzes the synthesis of cyclic GMP (cGMP) in rods and cones of photoreceptors. Plays an essential role in phototransduction, by mediating cGMP replenishment (PubMed:21598940). May also participate in the trafficking of membrane-asociated proteins to the photoreceptor outer segment membrane (PubMed:17255100). GTP = 3',5'-cyclic GMP + diphosphate Activated by GUCA1A when free calcium ions concentration is low, and inhibited by GUCA1A when free calcium ions concentration is high (PubMed:21598940). Negatively regulated by RD3; RD3 inhibits the basal and GUCA1A-stimulated guanylate cyclase activity (By similarity). Homodimer; requires homodimerization for guanylyl cyclase activity (By similarity). Interacts (via C-terminus) with RD3 (via C-terminus); promotes the exit of GUCY2E from the endoplasmic reticulum and its trafficking to the photoreceptor outer segments (By similarity). Interaction with RD3 negatively regulates GUCY2E guanylate cyclase activity (By similarity). There are 9 conserved cysteine residues in sensory guanylate cyclases, 6 in the extracellular domain, which may be involved in intra- or interchain disulfide bonds. Deficient mice exhibit abnormal retinal cone cell morphology, impaired cone and rod electrophysiology, and severe retinal cone cell degeneration. GUCY2E and GUCY2F double knockout mice does not show any photoresponse, their rods and cones degenerate and the intracellular transport of some phototransduction proteins is impaired. The gene name nomenclature of retinal guanylyl cyclase 1 is confusing; for mouse the gene name is GUCY2E whereas the gene name is GUCY2D for human and rat orthologs. Belongs to the adenylyl cyclase class-4/guanylyl cyclase family.