Selling electricity back to the grid: price per kWh

Selling surplus electricity from your solar panels back to the National Grid can boost the financial returns of your renewable energy investment. The Smart Export Guarantee (SEG) scheme in Great Britain provides a framework for homeowners to get paid for every kilowatt-hour (kWh) they export. Understanding how the SEG works, comparing tariffs, and optimising your setup are crucial for maximising these earnings.

If you already have an export MPAN and want to manage your electricity export seamlessly, Fuse Energy offers transparent management through a digital-first platform and 24/7 human support. Click here to switch your existing export tariff to Fuse Energy today.

Understanding the Smart Export Guarantee (SEG)

The SEG is a government-backed initiative in Great Britain that ensures small-scale low-carbon generators receive payment for electricity exported to the National Grid. It was introduced on 1 January 2020, replacing the previous Feed-in Tariff (FiT) scheme for new installations. The scheme is regulated by Ofgem, the UK's energy regulator.

What is the SEG and how does it work?

The SEG legally requires licensed electricity suppliers to offer tariffs and pay eligible generators for the electricity they send back to the grid. This means if your home generates more renewable electricity than you use, you can sell the excess and receive payment for it. All licensed electricity suppliers with over 250,000 domestic customers are legally required to offer an SEG tariff, according to Ofgem. SEG rates are typically paid per kilowatt-hour (kWh) of electricity exported.

Eligibility criteria for SEG tariffs

To qualify for an SEG tariff, your renewable electricity generation system (such as solar panels) must be certified under the Microgeneration Certification Scheme (MCS) or an equivalent scheme. This ensures your installation meets a recognised standard. Additionally, you need an export Meter Point Administration Number (MPAN) and a smart meter capable of recording half-hourly export data.

The role of smart meters in electricity export

A smart meter is a mandatory requirement for SEG participation. It accurately measures the amount of electricity you export to the grid, often providing half-hourly readings. This data is crucial for suppliers to calculate your payments accurately. Without a smart meter capable of recording export data, you cannot participate in the SEG scheme.

Comparing Smart Export Guarantee (SEG) tariffs and rates

SEG tariffs vary significantly between different licensed suppliers. Comparing these offerings is essential to ensure you are getting the best possible return for your exported electricity.

Factors influencing SEG price per kWh

The price per kWh offered by suppliers depends on several factors. Some tariffs offer a flat rate, while others might have variable rates that change based on the time of day or wholesale electricity prices. The overall competitiveness of the market and the supplier's own strategy also play a role. Some suppliers may offer higher rates if you also purchase your import electricity from them.

Fixed vs Variable SEG tariffs

Fixed SEG tariffs offer a consistent price per kWh for a set period, providing predictability in your earnings. Variable SEG tariffs, on the other hand, can fluctuate, potentially offering higher rates during peak demand times but also carrying the risk of lower rates at other times. Choosing between these depends on your preference for stability versus the potential for higher, but less predictable, earnings.

How to find the best solar export tariff UK

To find the best solar export tariff in the UK, you need to compare rates from various licensed suppliers. Many energy comparison websites and industry resources provide up-to-date information on current SEG offerings. It is important to consider not only the price per kWh but also the payment frequency, contract terms, and any specific requirements or benefits tied to the tariff.

Maximising your export earnings

Optimising your home electricity generation and usage can significantly increase the amount you earn from the SEG scheme.

Optimising solar panel generation and usage

To maximise your exports, consider shifting your electricity consumption to times when your solar panels are not generating, or are generating less. For example, running appliances like washing machines or dishwashers during the evening when your panels are inactive means more of your daytime generation can be exported. Regular maintenance of your solar panels also ensures they operate at peak efficiency.

The benefits of battery storage for export

Battery storage allows you to store surplus electricity generated by your solar panels instead of immediately exporting it. This stored energy can then be used later, reducing your need to import from the grid, or exported during periods when SEG rates are higher, if your tariff allows for variable export pricing. Battery storage offers greater control over your energy flow and can further enhance your earnings and energy independence.

Understanding payment frequency and statements

SEG payments are typically made monthly or quarterly, depending on your supplier's terms. You will receive statements detailing the amount of electricity you have exported and the corresponding payment. Monitoring these statements helps you track your earnings and understand your export patterns. The average UK home uses around 2,700 kWh of electricity per year, providing a useful benchmark for understanding your own generation and export potential.

Establishing and switching your export tariff

Participating in the SEG scheme involves a clear process, starting with establishing your initial export connection and then allowing you to switch providers for better rates.

The initial step: establishing an export MPAN with a supplier

Before you can start selling electricity back to the grid, you must establish an export MPAN with an energy supplier. This is the unique identifier for your export supply. It is important to note that while Fuse Energy can assist in generating an export MPAN, customers must first establish and energise their export MPAN with another supplier before switching to Fuse.

How to switch an existing SEG tariff to a new provider

Once you have an active export MPAN and are receiving payments from an initial supplier, you are free to switch your existing export tariff to another provider offering a better deal. This process is similar to switching your import electricity supplier. Fuse Energy simplifies the process for homeowners to switch an existing export tariff to them, ensuring a smooth continuation of payments and integrated energy management. Our digital-first approach and 24/7 human customer support are designed to assist with complex export queries and make managing your energy straightforward. Fuse Energy's export tariff pays 13p per kWh for the electricity you send back to the grid, paid as a separate export supply rather than as a discount on your import bill.

What to consider when changing your export supplier

When switching your existing SEG tariff, consider the rate per kWh, the payment terms, and any specific requirements of the new supplier. Ensure the new supplier can seamlessly take over your existing export MPAN. Look for providers that offer transparent billing and easy access to your export data.

Future-proofing your home energy export

The landscape of home energy generation and export is constantly evolving. Staying informed and integrating smart technologies can help you maximise your long-term benefits.

Integrating smart home technology with your export setup

Smart home technology can enhance your energy export strategy. Devices that automate energy usage based on generation forecasts or tariff rates can optimise when you consume, store, or export electricity. This level of control allows for more dynamic management of your home's energy ecosystem.

The evolving landscape of energy export in the UK

The UK's energy market is moving towards greater decentralisation and smart grid capabilities. Future developments may include more dynamic tariffs, enhanced grid services, and new opportunities for homeowners to participate in energy markets. Staying abreast of these changes will help you adapt and continue to maximise your earnings.

Support for your home electricity generation

Managing your home electricity generation and export can sometimes be complex. Having access to reliable support is crucial. Fuse Energy offers 24/7 human customer support to assist with any queries related to managing your existing export tariff and overall energy management, reinforcing customer empowerment.

Managing your home's energy export should be simple and transparent. Fuse Energy helps you take control of your export earnings with a digital-first platform and 24/7 human customer support. If you have an existing export MPAN, switching to Fuse Energy is straightforward, ensuring a smooth continuation of payments and integrated energy management. Click here to switch your existing export tariff to Fuse Energy today and start managing your energy with ease.