A solar PV system can cut the electricity you buy from the grid from the first day it is switched on. But when panels generate more than a property can use, that surplus electricity is exported. This guide to solar export payments explains how you can be paid for it, what you need in place, and why the highest tariff is not always the best deal.
How solar export payments work
Most new solar owners are paid through the Smart Export Guarantee, usually called SEG. Under this scheme, electricity suppliers offer tariffs for renewable electricity sent from an eligible installation into the grid.
Your solar panels generate electricity during daylight hours. Your property uses that electricity first, powering appliances, lighting, equipment or an EV charger where demand is present. Any unused generation flows through the meter and into the local electricity network. A SEG tariff pays for the measured amount exported.
Large electricity suppliers must offer at least one SEG tariff, while smaller suppliers can choose to participate. The rates, contract terms and payment methods vary considerably. Suppliers must offer a positive payment rate, but there is no single national price and no guaranteed minimum income.
For most households and businesses, the greatest financial benefit still comes from using solar electricity on site. Every unit used directly avoids buying a unit at the full import price. Export payments add value to surplus generation, but they are normally lower than the price paid for imported electricity.
Who can receive Smart Export Guarantee payments?
To qualify for SEG payments, the generating system must meet the supplier’s eligibility requirements and the scheme rules. Solar PV systems are generally eligible where the total installed capacity is up to 5MW. Most domestic, landlord and small commercial installations fall comfortably within this limit.
The installation will usually need MCS certification, or an equivalent recognised route for larger or non-standard systems. This confirms that the equipment and installation meet the required technical standards. You will also need the commissioning paperwork and an export-capable smart meter that records electricity sent to the grid.
The distribution network operator must be notified of the installation. For smaller systems, this is often handled through the G98 process after installation. Larger systems, or those with more complex connections, may need approval in advance under G99. This is particularly relevant for commercial premises with sizeable roof arrays, battery storage or existing generation equipment.
A competent installer should explain the connection process before work begins, especially where the property has a three-phase supply, limited network capacity or plans for EV charging and battery storage.
What if you receive Feed-in Tariff payments?
Older solar systems may receive payments under the Feed-in Tariff, or FiT, scheme. You cannot receive SEG payments for electricity that is already being paid under a FiT export arrangement. If you receive FiT generation payments but do not receive FiT export payments, you may be able to apply for SEG instead.
The right approach depends on your existing agreement and whether your export is deemed or meter-read. Check the details carefully before changing anything, as leaving an old arrangement may not improve your overall position.
Choosing a solar export tariff
SEG tariffs are not all alike. A fixed tariff pays the same rate for every unit exported, making income straightforward to understand. Flexible or time-of-use tariffs can pay different rates through the day, sometimes offering more at periods when the grid needs electricity most.
A variable tariff may suit a property with battery storage and the ability to control when electricity is exported. However, it also needs more attention. Rates can fall, tariff rules can change, and some arrangements may require you to take your imported electricity from the same supplier.
Before choosing a tariff, look beyond the advertised pence-per-kWh rate. Ask how often payments are made, whether there is a fixed contract term, how the supplier obtains meter readings, and whether the tariff has conditions relating to batteries or EV charging. A higher export rate can be less valuable if it comes with a more expensive import tariff.
For example, a system exporting 2,000kWh a year would earn £160 at 8p per kWh. That is useful income, but using an additional 2,000kWh on site may be worth far more if the property would otherwise buy electricity at a higher retail rate. This is why system design should focus on daytime consumption, not simply generating the largest possible export figure.
Your smart meter and export readings
An export-capable smart meter is essential for accurate SEG payments. It records the electricity leaving your property, usually in half-hourly periods, and allows the supplier to calculate what it owes you.
Do not assume that any smart meter will automatically send export readings. Some older meters were installed without export functionality enabled, while a replacement meter may be needed in certain cases. Your chosen supplier can confirm what meter data it needs, but it is sensible to raise the question before applying for a tariff.
Keep your solar installation certificate, commissioning information, MCS certificate where applicable, and meter details together. Having a clear record makes supplier applications and future property transactions easier to manage.
Solar export payments and battery storage
Battery storage changes the balance between using, storing and exporting solar electricity. Rather than sending midday surplus to the grid, a battery can retain it for use later in the day. This often reduces evening imports, which may produce better savings than exporting at a standard SEG rate.
That does not mean a battery is automatically right for every property. The value depends on electricity usage, battery capacity, tariff structure, solar output and whether an EV is charged at home or on site. A business that operates mainly through the day may already use much of its generation directly, while a household with high evening demand could benefit more from storage.
Check tariff terms before allowing a battery to export. Suppliers may set specific rules about grid charging, battery discharge and the source of exported electricity. Clear settings and professional commissioning help avoid unexpected billing issues.
Considerations for businesses, landlords and property managers
Commercial solar systems can produce meaningful export income, but the administrative detail matters. The organisation named on the electricity account should be clear, especially in multi-let buildings or premises with a landlord supply. Metering arrangements must identify the electricity exported from the solar installation rather than another part of the site.
For landlords, solar can make a property more attractive and lower costs in communal areas. The arrangement should be agreed clearly where tenants benefit from on-site generation. For businesses, reviewing half-hourly consumption data before installation can show whether solar, storage, load shifting or EV charging will provide the strongest return.
Tax treatment can differ between a homeowner, landlord and limited company. Small-scale domestic export income is often treated differently from income generated through a business asset. Obtain advice from an accountant where export income is material or the installation forms part of a commercial energy strategy.
Common questions about solar export payments
Do I have to use the same supplier for import and export?
Not always. You can often choose an export supplier separately from your electricity supplier. However, some of the more competitive tariffs are available only to customers who also buy their imported electricity from that supplier. Compare the total cost of import and export together.
How long does it take to receive payment?
This depends on the supplier. Some pay monthly, while others pay quarterly or at longer intervals. The application process can also take time while certification, meter details and eligibility are checked.
Can I switch SEG tariffs later?
Usually, yes, subject to the tariff’s notice period or contract terms. Review rates periodically, particularly if your energy use changes after adding a battery, heat pump or EV charger.
A well-designed solar installation should work around the way your property actually uses energy. For homeowners, landlords and businesses across Hull, East Yorkshire and Lincolnshire, Steel Electrical Services Ltd can assess solar PV and battery storage options with practical advice, correct certification and no sales pressure. Start with your consumption, your future plans and a clear view of the tariff terms – that is where the best long-term value is found.
