Getting paid for your solar energy – selling it back to the grid
Solar panels generate electricity throughout the day, rain or shine. However, without a battery to capture the excess energy, most homeowners only use a portion of what their panels produce.
But even with a battery, you might still generate more energy than you actually need. That’s where the Smart Export Guarantee, or SEG, comes in – it lets you sell that extra electricity back to the grid.
What is the Smart Export Guarantee (SEG)?
The Smart Export Guarantee started in 2020 and is a government-backed scheme that makes sure big energy suppliers pay you for the renewable energy you send back to the National Grid. It’s part of the UK’s plan to hit net-zero emissions.
You’re eligible if you generate electricity using solar panels, small wind turbines, or hydropower. Solar panel owners benefit the most because, unless you have a battery, you’ll likely be sending half of the energy you generate back to the grid. Surprisingly, in 2023 only about 3% of homeowners knew about SEG, but it’s slowly catching on. According to Ofgem, there were 283,666 solar installations registered on SEG tariffs in 2024, and this will have increased even more by the end of 2025.
How much can you earn?
The money you earn depends on the rate your energy supplier offers for exported electricity, so it’s worth comparing options to get the best deal. Sometimes the highest rates are reserved for existing customers. For example, Octopus Energy customers with a GivEnergy battery can earn up to 27p per kWh, while using a different battery gives 23.5p per kWh. OVO customers with a battery can make up to 20p per kWh, and E.ON customers without a battery can earn 16.5p per kWh. Octopus usually has the best rates, but the tariff varies depending on location and includes off-peak periods.
How much you’ll actually make in a year depends on your solar system’s size, how much electricity your household uses, the size of your home, and where you live and how much sun you get!
How to apply for the Smart Export Guarantee
First, your solar panels need to be installed by an MCS-certified installer, like us. Your system also has to have a maximum capacity of 5MW, which is way more than any typical home would need.
You’ll also need an export meter. If you have a smart meter, you’re good to go. To set up SEG, you’ll give your supplier your export MPAN, which is a 13-digit reference that identifies your electricity connection. If you’re unsure where to find it, we can help you.
How you get paid
If your SEG supplier also provides your home electricity, payments may come as a discount on your energy bill. If they don’t, you’ll get paid by bank transfer.
The money you earn is tax-free, as long as you’re not generating significantly more electricity than you use – usually no more than 20% over your household consumption.
SEG vs the Feed-in Tariff (FIT)
SEG replaced the old Feed-in Tariff (FIT), which closed to new applicants in 2019. FIT used to pay for all energy generated, plus an export payment for any extra sent to the grid. However, the export payment was fixed at around 50% of what your system generated.
Now, thanks to smart meters, SEG can measure exactly how much energy you export, so you get paid for the real amount.
If you have any questions, or would like to learn more about solar panel installation for your home, please get in touch with our experts at sales@eerenewables.co.uk or try our instant quote tool.
