In the UK, most households earn around £50–£300 per year by selling excess electricity back to the grid through the Smart Export Guarantee (SEG). The exact amount depends on how much surplus energy your solar panels generate, whether you use a battery, and the export tariff offered by your electricity supplier. While SEG payments won't replace your energy bills, they provide a steady return for unused solar power and help improve the overall value of a solar panel installation. That extra electricity doesn't need to go to waste. In the UK, homeowners can sell surplus electricity back to the National Grid through the Smart Export Guarantee (SEG). This guide explains how it works, how much you can earn, and whether selling solar power back to the grid is worth it.
What is the Smart Export Guarantee (SEG) scheme?
The Smart Export Guarantee (SEG) is a UK government-backed scheme that allows households and businesses with renewable energy systems to get paid for electricity they export back to the grid. Introduced in January 2020, the SEG scheme replaced the Feed-in Tariff (FiT). Under SEG, licensed electricity suppliers must offer an export tariff to customers who generate renewable electricity and export excess energy to the grid. SEG applies to renewable technologies such as:
- Solar panels
- Wind turbines
- Micro combined heat and power systems
- Other eligible renewable energy systems Payments are based on how much electricity is exported, measured in kilowatt-hours (kWh).
- Fixed export tariffs
- Variable export tariffs linked to wholesale energy prices
- Time-of-use or half-hourly export readings, and the best Smart Export Guarantee rates available in a given year The amount you earn depends on:
- How much excess electricity your solar system generates
- Your export tariff rate
- Whether you use battery storage systems
- Seasonal sunlight levels
- Using as much of their own electricity as possible
- Storing surplus energy in a solar battery
- Exporting extra energy they don't use or store SEG payments usually won't cover the full cost of a solar installation on their own, but they can:
- Reduce energy bills
- Improve return on investment
- Offset electricity import costs
- Increase overall energy savings
- Install solar panels or another eligible renewable system
- Ensure the system is certified under the Microgeneration Certification Scheme (MCS)
- Install a smart meter or export meter capable of measuring exported electricity
- Choose an energy supplier offering a SEG export tariff
- Apply for SEG and start exporting energy Once approved, your electricity exported to the grid will be measured and paid for automatically.
- Installing high-efficiency solar panels
- Using energy-intensive appliances during daylight hours
- Adding battery storage to control when energy is exported or to charge an electric vehicle directly from solar power
- Choosing a competitive SEG tariff
- Monitoring export readings regularly While SEG payments are usually modest, they can add up over time.
- Proof of MCS certification
- An export-capable smart meter
- Your Meter Point Administration Number (MPAN)
- Details of your solar panel installation Applications are made directly through your chosen electricity supplier. Approval times vary but typically take a few weeks, and understanding how solar panels work in the UK can help you estimate how much you're likely to export.
- Export rates are not government-set
- Payments are lower than historical Feed-in Tariffs
- Suppliers can change export tariffs
- SEG only pays for exported electricity, not total electricity generated This means SEG works best alongside energy-efficient habits, battery storage, and well-designed housing solar panel systems for UK homes.
- Larger solar systems
- Lower daytime electricity use
- Battery storage systems tend to export more surplus electricity and earn more from export payments.
- Export tariff price per kWh
- Contract length
- Payment frequency
- Half-hourly export readings
- Compatibility with battery storage Choosing the right energy supplier can significantly affect how much you earn.
- Monthly or quarterly
- By bank transfer or account credit Payments are based on recorded export readings from your smart meter or export meter.
- Accurate meter readings
- Correct export payments
- Compliance with electricity regulations
- The system is MCS certified
- You meet SEG eligibility requirements
How much do you get for selling electricity back to the grid?
SEG payments vary depending on your energy supplier and export tariff. Rates are usually paid per kWh of electricity exported and typically range from 3p to 20p per kWh, depending on the tariff. Some suppliers offer:
Is it worth selling solar power back to the grid?
Selling excess solar energy back to the grid can be worthwhile, but it works best as part of a wider energy strategy focused on cutting your energy bills with solar. Most homeowners benefit most from:
How do you sell power back to the grid?
Selling electricity back to the grid involves a few key steps, and following a clear 5-step SEG application process makes it simpler:
What was the Feed-in Tariff (FiT)?
The Feed-in Tariff (FiT) was a previous government scheme that paid households both for electricity generated and electricity exported. FiT closed to new applicants in March 2019. If you already receive FiT payments, you will continue to receive them for the length of your agreement, which is an important factor when working out how long solar panels take to pay for themselves. New solar installations must use the Smart Export Guarantee instead.
How can you make money with the Smart Export Guarantee?
Making money with SEG depends on maximising surplus electricity exports without wasting your own generated electricity. Practical ways to increase SEG income include doing a detailed solar calculation to maximise your system's potential and:
How do you apply for a SEG tariff?
To apply for a SEG export tariff, you will need:
What are the limitations of the SEG scheme?
The Smart Export Guarantee has some important limitations to understand:
How much can you make selling power to the National Grid?
Most UK homes earn £50–£300 per year from SEG payments, depending on system size, export rates, and usage patterns, as part of the wider benefits of solar powered panels for houses. Homes with:
Which energy supplier offers the best SEG rates?
SEG rates change regularly, and the best energy provider varies over time. Some suppliers offer higher export tariffs, while others offer flexible or time-based export rates. When comparing suppliers, look at:
How is SEG income paid?
SEG income is usually paid:
Do you need to tell your electricity supplier you have solar panels?
Yes. Your electricity supplier must be informed when you install solar panels so your electricity supply and export arrangements are set up correctly. This ensures:
Can you get paid for solar energy if you used a government grant?
Yes. Using a government grant or incentive to subsidise your solar installation does not prevent you from receiving SEG payments. As long as:
Selling power back to the grid FAQs
Selling excess electricity is one of the simplest ways to improve the financial return of renewable energy systems. While SEG won't replace your energy bills entirely, it rewards households for generating renewable electricity and supporting the transition away from fossil fuels, a topic covered in more depth across our wider solar energy advice and SEG resources. Combined with solar batteries, smart meters, and efficient energy use, exporting surplus electricity can play a meaningful role in long-term energy savings and carbon reduction.