A sunny afternoon can leave a well-sized solar system generating more electricity than your property needs. This solar export tariff guide explains what happens to that surplus, how you can be paid for it, and where a battery may offer better value than sending every spare unit to the grid.
For homeowners and businesses across London and the Home Counties, export payments are a useful part of the solar calculation, but they should not be the only reason to install panels. The strongest savings usually come from using your own low-cost solar electricity for appliances, EV charging and battery storage. Export income then provides a return for energy you cannot use on site.
What is a solar export tariff?
A solar export tariff pays you for electricity generated by your solar PV system that is exported to the national grid. In Great Britain, the main route is the Smart Export Guarantee, commonly called SEG. Licensed electricity suppliers with more than 150,000 domestic customers must offer at least one SEG tariff, although smaller suppliers may offer one too.
The supplier pays a rate for each kilowatt-hour (kWh) exported. Rates, contract terms and payment methods vary widely. Some tariffs have a fixed rate, while others track wholesale market prices and can change through the day. A higher headline rate can be attractive, but it is only valuable if the tariff terms suit the way your system generates and exports.
SEG is separate from the price you pay to import electricity. You can choose an export tariff and an import tariff independently, subject to each supplier’s terms. That means it is worth comparing both sides of your energy bill rather than focusing on export payments alone.
The checks to make before choosing an export tariff
Your solar installation must normally meet several requirements before a supplier can pay SEG. The system needs to be installed by an MCS-certified contractor, or under an equivalent recognised scheme, and you will need the relevant commissioning documents. This is one reason to treat the installation paperwork as part of the job, not an afterthought.
You will also need a suitable smart meter capable of recording half-hourly export readings. Without reliable export data, a supplier cannot accurately calculate what it owes you. Your energy supplier can usually confirm whether your existing meter is compatible and arrange an exchange if required.
The installer should notify the local Distribution Network Operator of the solar connection. For many smaller domestic systems, this is handled under the G98 process after installation. Larger or more complex systems may require approval under G99 before work begins. This matters particularly where battery storage, higher-output inverters or three-phase supplies are involved.
Keep your MCS certificate, DNO confirmation, meter details and bank information together. Suppliers can ask for these when you apply, and having them ready avoids unnecessary delays.
Check whether the tariff accepts your setup
Not every tariff treats every system in the same way. Before signing up, check whether the supplier accepts export from solar-only systems, solar plus battery systems, and batteries that may charge from the grid. Ask how it calculates exported energy and whether it has restrictions on export from stored grid electricity.
This is especially relevant for households using a battery for time-of-use charging. A battery can lower costs by charging when imported electricity is cheap and supplying the home when prices are higher. However, tariff rules may limit payment for electricity that was not originally generated by your solar panels. Clear settings and accurate metering protect both your income and your compliance.
Exporting solar or storing it: which saves more?
The answer depends on your electricity use, the import price you avoid, your export rate and the size of your battery. As a simple example, if one unit of solar electricity can either earn a modest export payment or replace a much more expensive imported unit later that evening, storing and using it at home may be the better financial choice.
That does not mean exporting is a poor option. On bright days, a full battery and low daytime demand can leave plenty of surplus generation. Exporting that energy provides a useful payment rather than letting its value go unused. It also helps support the wider grid at times when local solar generation is high.
A battery should be sized around your actual consumption pattern, not simply matched to the maximum output of the panels. A household that uses most electricity in the evening may benefit greatly from storage. A property occupied during the day, with an EV charging from solar, may already achieve strong self-consumption without a large battery. For some homes, a smaller battery is the more cost-effective choice.
How to compare solar export tariffs properly
Do not select a tariff on the pence-per-kWh figure alone. Start with the type of payment. Fixed export rates are easier to understand and make budgeting straightforward. Variable or agile tariffs can pay more at certain times, but they may also fall when there is abundant renewable generation on the grid – often when your panels are producing well.
Next, look at contract conditions. Check whether you must take your imported electricity from the same supplier, whether there is a minimum contract period, how often payments are made, and whether you need to submit readings. Some suppliers pay monthly, while others issue credits less frequently.
Also consider the practical impact of half-hourly settlement. Dynamic tariffs depend on detailed meter readings, so your smart meter must be communicating consistently. If readings are missing, payments can be delayed or estimated. It is sensible to review your first few statements after changing tariff to make sure imported and exported units are being recorded correctly.
For a small business, the decision can be more complex. Daytime equipment loads, refrigeration, office demand, EV fleets and operating hours all affect the balance between using solar on site and exporting it. A system designed around a proper load assessment is more likely to deliver dependable savings than one sized only around roof area.
Do older Feed-in Tariff customers receive export payments?
Some older solar owners receive Feed-in Tariff payments rather than SEG. Their export payment may be deemed, meaning it is calculated as a proportion of generated electricity instead of being measured by a smart meter. Others may have metered export arrangements.
Installing a battery, changing meter arrangements or switching suppliers can affect how these payments work. Do not assume you can move to an SEG tariff without consequences if you are on a legacy scheme. Check the terms of your existing arrangement and seek advice before making changes. The right approach depends on your generation date, metering and current payment structure.
Make your system work harder before exporting more
The most valuable solar electricity is often the electricity you do not have to buy. Small changes to when you use power can improve this without compromising daily life. Run dishwashers, washing machines and other flexible loads during solar hours where practical. Use smart controls to prioritise solar charging for an EV or battery, while retaining sensible limits that protect the property supply.
For resilience-focused households, battery design needs an additional conversation. Standard battery storage does not automatically keep a home powered in an outage. Emergency power supply and full-house backup arrangements require correctly specified equipment, safe isolation and a clear plan for which circuits will operate. Export income is useful, but dependable backup during a grid failure can be the more important outcome.
A quality installation brings the panels, inverter, battery, consumer unit, EV charger and protection devices together as one electrical system. It should also leave room for future changes, such as adding battery capacity or altering charging schedules as tariffs evolve.
A practical next step
Before applying for a solar export tariff, collect your installation certificates, confirm your smart meter is recording export, and review how your household uses electricity across a typical week. That information makes tariff comparisons far more meaningful than a headline rate alone.
If you are planning solar, battery storage, EV charging or full-house backup, specify the system around the savings and resilience you want from day one. Home EESS can assess the property, design the electrical work safely and provide the clear handover information needed to put your solar generation to work with confidence.
