How Much Do I Get for Selling Electricity Back to the Grid in the UK?

More UK homeowners are discovering that a solar system can do more than just cut electricity bills. With the Smart Export Guarantee (SEG), households are paid for the power they don’t use at home, turning their panels into a small-scale source of income. This makes it possible to lower costs, generate additional earnings, and support the UK’s move towards cleaner energy at the same time. In this article, we outline how the SEG works, what current export rates look like, the factors that determine potential income, and how to make the most of electricity exported to the grid.

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Key Takeaways

• Households with solar panels can turn surplus energy into a steady income through the Smart Export Guarantee.
• Some suppliers now pay premium export rates of more than 20p per kWh, adding up to hundreds of pounds a year.
• The more electricity your system exports to the grid, the greater your potential earnings.
• Choosing the right supplier and tariff makes a big difference to how much money you earn.

What Is the Smart Export Guarantee?

The Smart Export Guarantee (SEG) is the UK framework that ensures small-scale renewable energy generators receive payment for the electricity they export to the grid. Introduced in 2020, it replaced the Feed-in Tariff for new applicants. Payments are made on a per-kilowatt-hour (kWh) basis, with rates determined individually by licensed energy suppliers.

The scheme was created to encourage the adoption of renewable energy technologies such as solar PV and wind. It strengthens household returns while supporting the UK’s renewable energy targets.

How the Smart Export Guarantee Works

The Smart Export Guarantee follows a straightforward process. Once your system is installed and eligible, payments are made for the electricity you export to the grid through these key steps:

1. Generate electricity: Your renewable system (such as solar panels) produces electricity for household use.
2. Use electricity at home: Power is consumed on-site first, reducing the amount you draw from the grid.
3. Export surplus: Any electricity not used immediately is automatically exported to the national grid.
4. Measure exports: A smart meter or approved export meter records the exact amount of electricity exported.
5. Receive payment: Your chosen SEG licensee pays you according to the agreed tariff rate and contract terms. 

Who Qualifies for the SEG in the UK?

Eligibility depends on the type of system and compliance with technical standards:

• System capacity: Up to 5MW for most technologies, or up to 50kW for micro-CHP.
• Certification: The installation and installer must be accredited under the Microgeneration Certification Scheme (MCS) or an equivalent scheme.
• Metering: A smart meter capable of half-hourly export readings is required.
• Technologies covered: Solar PV, wind, hydro, anaerobic digestion (AD), and micro combined heat and power (micro-CHP up to 50kW).
• Exclusions: Systems already receiving export payments under the Feed-in Tariff cannot claim SEG.

Generators can apply to any SEG licensee, regardless of who supplies their electricity or gas. SEG licensees must publish their application process, tariff rates, and contract terms on their websites.

Current Export Tariff Rates

The value of SEG payments depends entirely on your chosen supplier and tariff. Rates vary widely, making regular comparison important to maximise earnings from the electricity you export.

SEG Tariff Rates from the Big Six Suppliers

The UK’s largest suppliers set different export rates and contract terms. Recent examples include:

• British Gas: Offers Export and Earn Plus at 15.1p per kWh, available exclusively to British Gas electricity customers. This is a variable tariff with no end date, no exit fee, and the option to switch at any time. Customers who are not with British Gas receive 3.02p per kWh.
• EDF Energy: The Export 12m tariff pays 15p per kWh on a one-year fixed contract with no exit fees, available to existing EDF electricity customers. The SEG Export Variable Value tariff offers 5.6p per kWh on a variable basis for EDF customers, while the SEG Export Variable tariff pays 3.0p per kWh and is open to anyone, regardless of supplier.
• Octopus Energy: Offers the Outgoing Fixed tariff at a flat 4.1p per kWh for all exported electricity.
• Scottish Power: Provides three SmartGen tariffs. SmartGen pays 6p per kWh on a variable rate, open to SEG-eligible customers. SmartGen Premium pays 12p per kWh, available exclusively to Scottish Power electricity customers. SmartGen Premium Plus pays 15p per kWh, exclusive to Scottish Power electricity customers who installed their solar panels or battery with the company.
• E.ON: Next Export Premium v2 pays 21p per kWh on a 24-month fixed deal for E.ON Next customers with approved new installations. Next Export Exclusive pays 16.5p per kWh on a 12-month fixed deal for E.ON Next customers or those with approved installs. Next Export pays 3p per kWh on a 12-month fixed deal with no exit fees, open to all.
• OVO Energy: Offers several tariffs. SEG pays 4p per kWh and is open to all suppliers. SEG Beyond Exclusive pays 12p per kWh for OVO customers with systems up to 30kW, with extra rewards via Beyond. SEG Install Exclusive pays up to 20p per kWh (15p for solar only, 20p with solar and battery) for OVO customers using OVO installations.

All SEG tariffs require a smart meter capable of half-hourly export readings.

SEG Tariff Rates from Independent Providers

Independent and green-focused suppliers often compete with higher rates to win customers. Some have offered export prices exceeding those of the Big Six, in some cases reaching double figures per kWh. 

For example, Good Energy pays 20p per kWh for customers with solar panels and a battery installed by Good Energy, or 15p per kWh for customers who have had panels installed from elsewhere.

What Factors Influence SEG Earnings?

The income a household receives from the Smart Export Guarantee depends on several factors, ranging from the size of the solar system to everyday energy consumption habits.

Solar Panel System Size

System capacity has a direct impact on export potential. Larger arrays generate more electricity, often creating a greater surplus to feed into the grid. Smaller systems of 2–3 kWp may cover most household demand with limited excess, while solar panel installations of 4–6 kWp or more typically produce enough additional power for regular exports. As a guide, a typical 3.5 kW solar system can export between 1,000 and 1,500 kWh each year. 

Household Energy Use and Self-Consumption

The level of electricity used within the home also shapes SEG earnings. Homes with higher daytime demand consume more of their generated power on-site, which lowers export payments but maximises savings on bills.

In contrast, households with lower daytime usage and larger solar arrays often export a higher proportion of their generation. Understanding household consumption patterns helps set realistic expectations for potential SEG income.

How to Maximise Export Income

Export income is shaped by the timing and management of surplus electricity sent to the grid. Careful tariff selection and the use of smart technology allow households to strengthen bill savings and increase Smart Export Guarantee (SEG) payments.

Investing in Battery Storage

Battery storage gives households more control over when to use or sell their solar energy. Instead of automatically exporting surplus power during the day, excess electricity can be stored and released later. 

This means you can cover your evening demand or export when grid rates are higher. While batteries add to the upfront cost of solar panel installation, they increase energy independence and can improve long-term financial returns.

How Skygateâ„¢ Supports SEG Earnings

Maximising SEG payments depends on timing. Exporting electricity when rates are highest brings in more income, but that requires smart coordination between your solar panels, battery, and tariff.

Skygateâ„¢ makes this possible by automatically managing your system in the background. It charges your battery when solar generation is high and releases stored energy to the grid during peak demand periods, aligning exports with the most favourable tariff windows. With live oversight in the Upvolt app, you can track performance and adjust settings to suit your household's needs.

Let's Recap

The Smart Export Guarantee has changed the way UK households benefit from solar energy. Instead of simply cutting electricity bills, homeowners can now generate an additional income stream by exporting unused power to the grid. 

The amount earned varies widely, with some suppliers paying just a few pence per kilowatt-hour while others offer more than 20p. System size, household usage patterns, and tariff choice all shape the total return, meaning no two homes will see the same results.

To maximise earnings, it pays to keep a close eye on available tariffs and review contracts regularly. Even small differences in export rates can add up to hundreds of pounds each year. With more suppliers entering the market and demand for renewable energy increasing, households that stay informed and proactive are best placed to secure the strongest returns from their solar panels.

About Upvolt

Upvolt is a trusted provider of sustainable energy solutions for homes across the UK. We specialise in designing and installing tailored solar panel systems that lower electricity bills, generate long-term savings, and reduce reliance on the grid.

Our team of in-house engineers delivers expert installation to the highest standards, ensuring every system meets local regulations and performs at peak efficiency. With advanced equipment and our innovative Skygateâ„¢ platform, we help households track performance, manage energy flows, and make the most of every unit of power produced.

Request a free quote today and take the first step towards a smarter, greener home powered by renewable energy.

FAQ

What is the Smart Export Guarantee (SEG)?

The Smart Export Guarantee is a UK scheme that ensures households are paid for exporting excess energy back to the grid. Licensed energy suppliers offer different tariffs, so the income you receive depends on the solar export tariff you choose.

Who is eligible for the Smart Export Guarantee scheme?

Homeowners qualify if their system is installed by an MCS certified installer, has a capacity of up to 5MW (or 50kW for micro CHP), and uses a smart meter MCS-certified capable of half-hourly export readings. Eligible technologies include solar PV, wind, hydro, anaerobic digestion, and micro CHP.

How much money can I earn by selling excess electricity back to the grid?

Earnings vary depending on the size of your system, your household’s energy use, and the solar export tariff you select. Some suppliers offer only a few pence per kWh, while others pay over 20p per kWh, which can add up to hundreds of pounds each year for homes exporting regularly.

How do I apply for the SEG scheme?

You can apply directly with any licensed SEG supplier, regardless of who provides your current electricity. Each supplier sets its own application process, contract terms, and export rates, so comparing offers before applying is essential.

Are solar batteries needed to be eligible for the Smart Export Guarantee scheme?

No, solar batteries are not required to qualify for SEG payments. However, batteries can give households more control over when to use or export electricity, which may help maximize returns under time of use tariffs.

Alex Lomax

CEO & Co-Founder

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