Get paid for selling electricity back to the grid

Selling surplus electricity back to the grid can turn your home's microgeneration system into a source of income, rather than just a way to cut bills. The Smart Export Guarantee (SEG) scheme in the UK allows homeowners with eligible renewable energy systems, such as solar panels, to get paid for the electricity they export. Understanding how SEG tariffs work and comparing the price per kilowatt-hour (kWh) offered by different suppliers is key to maximising your earnings.

If you're generating your own clean energy, you're already making a smart move for your home and the planet. Fuse Energy supports homeowners in making the most of their energy, including those who export power. Discover how easy it is to manage your energy with clear pricing and smart insights. Click here to switch to Fuse Energy today.

Understanding the Smart Export Guarantee (SEG)

The SEG is a government-backed initiative designed to encourage the generation of renewable electricity at a small scale. It ensures that homeowners who produce their own clean energy can be compensated for any surplus electricity they send back to the National Grid.

What is the SEG scheme?

The SEG scheme, launched on 1 January 2020, mandates that larger energy suppliers in Great Britain offer a tariff and pay eligible generators for the low-carbon electricity they export. Ofgem, the energy regulator, oversees the scheme, ensuring that all mandated energy suppliers (those with at least 150,000 domestic customers) offer at least one SEG tariff with a rate above 0p/kWh. This means you are guaranteed to be paid something for your exported power.

How does SEG differ from the Feed-in Tariff (FIT)?

The SEG scheme replaced the Feed-in Tariff (FiT), which closed to new applicants in March 2019. The primary difference is what they pay for: the FiT scheme paid for both the electricity you generated and the electricity you exported. In contrast, the SEG only pays for the electricity you export to the grid. If you were on the FiT, you might be able to switch your export payments to an SEG tariff while keeping your generation payments, which could offer a higher rate for your exported energy.

Eligibility for selling electricity to the grid

To qualify for SEG payments, your microgeneration system and metering setup must meet specific criteria. These requirements ensure that your system is safe, certified, and capable of accurately measuring exported electricity.

System requirements and certification

Your renewable electricity generating system must be located in Great Britain and have a total installed capacity (TIC) of no more than 5MW. For micro combined heat and power (micro-CHP) systems, the limit is 50kW. Most domestic solar panel installations easily fall within these limits.

Crucially, your installation and installer must be certified through the Microgeneration Certification Scheme (MCS) or an equivalent accredited scheme. This certification provides assurance of quality and compliance. You will also need to provide proof of grid connection (often called DNO approval or G98/G99) from your Distribution Network Operator (DNO).

Meter requirements for SEG tariffs

A smart meter is generally required to access SEG tariffs, especially the most competitive ones. This meter needs to be capable of providing half-hourly export readings, which is how your SEG payments are calculated. If you do not have a smart meter, your energy supplier can usually install one for free. Many homeowners often pair this with a smart meter installation to track usage more effectively.

How SEG tariffs work: price per kWh explained

The price you receive for each kWh of electricity you export varies significantly between suppliers and tariff types. Understanding these options helps you choose the best fit for your generation and export patterns.

Fixed vs variable SEG rates

SEG tariffs come in different forms:

• Fixed rates pay a set price per kWh for the duration of the contract. This offers predictability in your earnings.
• Variable rates can change over time, often reflecting market conditions. While they can fluctuate, the rate must always remain above zero.

Time-of-Use (ToU) export tariffs

Time-of-Use (ToU) tariffs offer different rates depending on when you export electricity. These tariffs often provide higher rates during periods of peak demand on the grid. If you have battery storage, you can strategically export electricity during these peak windows to maximise your earnings.

Factors influencing your export rate

The SEG rates in the UK typically range from around 1p/kWh to over 25p/kWh. The specific rate you receive depends on several factors:

• Your chosen energy supplier: Each supplier sets its own rates.
• Tariff type: Fixed, variable, or Time-of-Use tariffs offer different pricing structures.
• Market conditions: Wholesale electricity prices can influence variable and ToU rates.
• Relationship with your supplier: Some of the highest rates are offered to customers who also take their import electricity from the same supplier, or who had their system installed by that supplier.
• Battery storage and smart technology: These can enable you to take advantage of higher peak rates by exporting at optimal times.

Comparing SEG tariffs and maximising your earnings

Choosing the right SEG tariff can significantly impact your annual earnings. It is not just about the headline rate; it is about how that rate aligns with your energy generation and export habits.

Researching current SEG rates from suppliers

With rates varying widely, shopping around is essential. You do not have to choose your SEG supplier based on who supplies your imported electricity; you can opt for separate companies. However, some of the most attractive rates are often offered by suppliers to their existing import customers. For those considering renewable energy, exploring solar panel grants can also help with initial investment costs.

Optimising export with battery storage and smart technology

Battery storage allows you to store surplus electricity generated by your solar panels instead of exporting it immediately. This gives you the flexibility to use it yourself later or export it during peak demand periods when Time-of-Use tariffs offer higher rates. Smart technology, such as home energy management systems, can automate this process, optimising when to store and when to export for maximum financial return. This approach aligns with viewing your exported electricity as a valuable asset.

Calculating potential earnings from exported electricity

The amount you can earn from SEG depends on your system's size, how much electricity you export, and your chosen tariff rate. For example, a typical solar PV system could earn hundreds of pounds annually, depending on its output and the export rate. The average UK home uses around 2,500 kWh of electricity per year (Ofgem's medium typical domestic consumption value, effective 1 July 2026). While SEG payments are for exported electricity, understanding your consumption helps contextualise your surplus generation.

The process of applying for an SEG tariff

Applying for an SEG tariff involves a few straightforward steps, primarily centred on choosing a supplier and providing the necessary documentation.

Choosing an SEG supplier

Start by researching and comparing the SEG tariffs offered by various energy suppliers. Look beyond just the pence-per-kWh rate and consider any eligibility conditions, such as requiring you to be an import customer or having a specific type of installation.

Application steps and required documentation

Once you have chosen a supplier, you will typically need to complete an online application form. The required documents usually include:

• Your MCS certificate or equivalent accreditation.
• Proof of grid connection (DNO approval, G98/G99).
• Details of your smart meter, including its serial number and an up-to-date export reading.
• Your bank details for payment.

Your chosen energy supplier will then process your application, which can take a few weeks.

Is selling electricity back to the grid worth it?

For many homeowners with microgeneration systems, participating in the SEG scheme offers clear advantages, both financial and environmental.

Financial benefits and energy independence

Selling electricity back to the grid provides a tangible financial return on your investment in renewable energy. It helps offset installation costs and can contribute to reducing your overall energy bills. Beyond direct payments, it fosters greater energy independence, giving you more control over your household's energy usage and costs.

Contribution to a greener grid

By exporting your surplus renewable electricity, you are not just earning money; you are also contributing to a more sustainable and decarbonised National Grid. This helps reduce reliance on fossil fuels and supports the UK's transition to a cleaner energy system. It is a way for individual homeowners to play a direct role in building a greener future.

Making the most of your exported energy is just one way to take control of your home's energy. Fuse Energy offers clear pricing, real-time usage data through our app, and 24/7 human customer support to help you manage your energy effectively. Our export tariff pays 13p per kWh for the electricity you send back to the grid. Switching to Fuse is quick and easy, designed to put you in charge of your energy bills. Click here to switch to Fuse Energy today. Find out more about our mission to make energy fair and simple by clicking here.