BrightGridSolar panels can reduce the electricity you buy from the grid, but what happens to electricity your home does not use? In the UK, eligible solar generators can potentially receive payments for exported electricity through the Smart Export Guarantee, commonly called SEG.
What is the Smart Export Guarantee?
The Smart Export Guarantee is a framework under which participating electricity suppliers offer export tariffs to eligible small-scale renewable generators. It replaced the previous Feed-in Tariff export mechanism for new applicants.
How do solar export payments work?
When your solar system generates more electricity than your home is using and the surplus is exported to the grid, an eligible export arrangement can pay you according to the tariff offered by the supplier.
| Energy flow | What happens |
|---|---|
| Solar used immediately | Reduces electricity bought from the grid |
| Solar stored in battery | Can be used later in the property |
| Solar exported | May receive an export payment under an eligible tariff |
| Grid electricity imported | You pay your electricity supplier |
Should you use solar yourself or export it?
In many homes, using solar electricity directly can be valuable because it avoids buying electricity from the grid. However, the correct strategy depends on the difference between your import electricity price and export payment, as well as battery efficiency and tariff rules.
How does a battery affect solar exports?
A battery can absorb surplus solar generation before electricity is exported. This can increase the amount of solar energy used in the home later. However, battery charging and discharging involve energy losses, so the economics should be modelled rather than assumed.
Do not choose a battery based on export rates alone
The best battery strategy depends on the whole energy system: solar generation, household demand, battery efficiency, import tariff and export tariff.
What should you compare when choosing an export tariff?
- Export rate per kWh
- Whether the tariff requires you to take your electricity supply from the same company
- Metering requirements
- Contract terms
- Payment frequency
- Whether battery exports are permitted under the tariff
- Whether the tariff interacts with a smart or time-of-use electricity plan
Do you need a smart meter?
Export metering arrangements vary between suppliers and tariffs. A smart meter is commonly used to measure electricity flows, but your supplier should confirm the specific requirements for the tariff you are considering.
How to maximise the value of your solar system
- Use high-energy appliances when solar generation is available.
- Consider smart charging for an EV.
- Consider battery storage where the numbers support it.
- Compare import and export tariffs regularly.
- Monitor your solar generation and household consumption.
- Avoid choosing a system solely around the highest advertised export rate.
See where your solar electricity could go
Compare self-consumption, battery storage, EV charging and export strategies for your home.
Model Your SavingsFrequently asked questions
What is the Smart Export Guarantee?
The Smart Export Guarantee is a UK framework under which participating electricity suppliers offer export tariffs to eligible small-scale renewable generators.
Can I sell electricity from my solar panels?
Eligible solar generators can potentially receive payments for electricity exported to the grid through an available export tariff, subject to the supplier and scheme requirements.
Do I need a smart meter for solar export payments?
Metering requirements vary between suppliers and tariffs. Many export arrangements use smart-meter data to measure exported electricity.
Is it better to use solar electricity or export it?
Using solar directly can avoid buying electricity from the grid, while exporting creates an export payment. The better option depends on your import price, export rate, battery efficiency and household usage.
Marcus Webb
Head of Engineering at BrightGrid Energy
