Can You Sell Solar Energy Back to the Grid in the UK?

Learn how the Smart Export Guarantee works and how UK homeowners can earn money from excess solar energy.

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TL;DR

Yes, via the Smart Export Guarantee (SEG) — you earn 3–15p per kWh exported. But the real value is using your own solar (saving 27–28p per kWh) rather than selling it. A battery maximises self-consumption and cuts bills by 60–80%.

Short answer: yes. When your solar panels produce more than you're using, the surplus goes to the grid and you get paid for it. The scheme is called the Smart Export Guarantee (SEG), running since January 2020.

It won't make you rich. But it's a genuine bonus on top of the bill savings you're already making.

How the SEG works

Any supplier with more than 150,000 customers must offer you an export tariff by law, as set out in Ofgem's SEG guidance. Your smart meter tracks what you send to the grid, and you get paid per kilowatt-hour.

Rates range from 3p to 15p per kWh. Some tariffs are fixed, some variable. Shop around — the gap between best and worst adds up.

What you need

Three things:

  • An MCS-certified installation. Non-negotiable. At Lunar Solar, we're fully MCS Certified, so any system we install qualifies automatically.
  • A smart meter. Your supplier will fit one for free if you haven't got one.
  • A system under 5MW. Typical home systems are 3–6kW, so this is never an issue.

The SEG replaced the old Feed-in Tariff (FIT), which closed in March 2019. Rates are lower, but panels are cheaper and more efficient now, so the economics still work.

Here's the bit that actually matters

Export payments are a nice perk. But they're not where the real money is.

You buy electricity at around 27–28p per kWh. Every unit of solar you use yourself is a unit you don't buy. So self-consumption saves you the full retail rate.

Exporting that same unit? You earn maybe 5–10p.

Using your own solar is worth three to five times more than selling it. That's the number that should shape every decision about your system.

Why batteries change everything

Panels peak at midday. Most households peak morning and evening. Without a battery, your surplus gets exported at 5p and you buy it back at 28p after dark. Terrible trade.

A battery stores daytime excess for evening use. Self-consumption jumps from 40–50% to 70–80% or higher, and most households we install for see bills drop by 60–80%.

Panels power your home by day, the battery catches the overflow, you use stored energy in the evening. Only the true surplus — beyond your use and your battery — gets exported for a SEG payment.

You can switch SEG provider

Your SEG supplier doesn't have to be your electricity provider. They're completely independent. Poor export rate? Switch. Review it yearly, same as your main energy deal.

Some suppliers offer time-of-use tariffs that pay more during peak hours. Got a battery? You can hold your solar and export strategically during those windows for a better rate.

Size the system right, add a battery, use as much of your own generation as possible. The SEG payment on whatever's left? Just the cherry on top. Use our calculator to estimate your export income and total savings.

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