Solar and battery tariffs

Homeowners with solar panels and battery storage often face a complex array of energy tariffs. Choosing the right tariff is essential for maximising savings and optimising both energy usage and export. This guide explores the available options, helping you make an informed decision about your home energy system.

Understanding UK solar and battery tariffs

The UK energy market has evolved to support renewable energy generation, leading to specialised tariffs for homes with solar panels and battery storage. These tariffs are designed to reward homeowners for generating their own electricity and for helping to balance the National Grid.

The Smart Export Guarantee (SEG)

The Smart Export Guarantee (SEG) is a government-backed scheme launched in January 2020. It requires licensed electricity suppliers to pay small-scale renewable energy generators for the surplus electricity they export to the grid. This scheme replaced the older Feed-in Tariff (FiT) scheme, which closed to new applicants in 2019. Under SEG, energy suppliers with over 150,000 domestic electricity customers must offer at least one export tariff, though smaller suppliers can participate voluntarily.

To qualify for SEG, your renewable energy system (such as solar panels) must be connected to the UK grid and be certified under the Microgeneration Certification Scheme (MCS) or an equivalent scheme. The system's maximum capacity must not exceed 5 megawatts (MW). A smart meter capable of providing half-hourly export readings is also essential.

Time-of-use tariffs

Time-of-use (ToU) tariffs charge different electricity rates depending on the time of day. These tariffs typically feature cheaper rates during off-peak hours (often overnight) and higher rates during peak demand periods (such as early evenings). For solar and battery owners, ToU tariffs are particularly beneficial as they allow you to charge your battery when electricity is cheap (either from the grid or surplus solar) and then use or export that stored energy when rates are higher. This strategy, known as arbitrage, can significantly increase savings and earnings.

For example, some ToU tariffs offer off-peak rates as low as 4.5p per kWh, while peak rates can climb to 45p per kWh. By charging a battery during cheaper off-peak periods and discharging it during more expensive peak times, you could achieve significant daily savings, accumulating substantial annual benefits.

Export-only tariffs

While time-of-use tariffs often combine import and export rates, some tariffs focus specifically on paying for exported electricity. These are generally SEG tariffs, where suppliers offer a rate per kilowatt-hour (kWh) for the energy you send back to the grid. The rates offered by suppliers can vary widely, from a few pence to over 30p per kWh, making it crucial to compare options. It is worth noting that you can often choose a different supplier for your export tariff than your import tariff, allowing you to pick the best rate for each.

Key factors when choosing a solar and battery tariff

Selecting the optimal tariff involves more than just looking at the highest export rate. A strategic approach considers several factors to ensure the tariff aligns with your energy generation, consumption habits, and system capabilities.

Import versus export rates

The interplay between import and export rates is fundamental for solar and battery owners. A tariff with low import rates during off-peak hours allows you to charge your battery cheaply from the grid, while high export rates during peak times maximise your earnings when you sell stored or surplus solar energy. Some tariffs are specifically designed with this in mind, offering higher export rates in the evening peak (e.g., 4pm - 7pm) and very cheap import rates overnight (e.g., 2am - 5am).

Standing charges and unit rates

Beyond the variable import and export rates, tariffs also include a daily standing charge and standard unit rates for electricity. The standing charge is a fixed daily fee you pay to be connected to the grid, regardless of how much energy you use. While unit rates fluctuate with ToU tariffs, understanding the standard rates for non-peak periods is important for overall cost assessment.

Eligibility requirements (smart meters, system size)

Most advanced solar and battery tariffs, especially time-of-use and premium export options, require a smart meter capable of providing half-hourly readings. This allows suppliers to accurately track your import and export patterns and apply the correct variable rates. Your solar system must also be MCS certified and typically have a capacity of 5MW or less. Some premium tariffs may also require you to be an existing customer of that supplier for both import and export.

Contract length and exit fees

Tariffs can be fixed-term or variable. Fixed tariffs offer price stability for a set period, while variable tariffs can change with wholesale energy prices. Many modern solar and battery tariffs come with no exit fees, offering flexibility to switch if a better deal emerges. Always check the contract length and any associated exit fees before committing.

Comparing leading UK solar and battery tariffs

The UK market features a growing number of tariffs tailored for solar and battery systems. Evaluating these offers requires a close look at their structure and how they reward active energy management.

How to evaluate different offers

When comparing tariffs, consider your typical energy consumption patterns. The average UK home uses around 2,700 kWh of electricity per year, according to Ofgem and GOV.UK data. If you have a battery, assess how effectively a tariff allows you to charge during cheap periods and discharge or export during expensive ones. Look for tariffs that offer premium export rates during peak demand times, as this is where battery owners can maximise their earnings.

What to look for in a "best" tariff

The "best" tariff is highly individual, depending on your system size, battery capacity, and lifestyle. For most UK homes with solar panels and a battery, a combination of a cheap smart import tariff and a premium SEG export tariff often yields the best results. Some tariffs offer a multi-rate structure for both import and export, with super cheap rates overnight (e.g., 2am - 5am) and peak export rates in the evening (e.g., 4pm - 7pm). Other suppliers also offer competitive solar and battery tariffs, some with fixed export rates or specific conditions.

Common tariff structures

• Fixed SEG tariffs: Pay a set rate per kWh for exported electricity, regardless of the time of day. These are simpler but may not maximise earnings for battery owners.
• Variable SEG tariffs: The export rate can change, often linked to market demand, though it must always be greater than zero.
• Time-of-use tariffs (import and export): Offer different import and export rates throughout the day, rewarding strategic charging and discharging of batteries. These are generally the most beneficial for solar and battery owners.

Optimising your solar and battery system with smart technology

Smart technology is the backbone of modern energy optimisation, transforming how homeowners interact with their solar and battery systems and the wider grid.

The role of smart meters

Smart meters are indispensable for accessing the benefits of advanced solar and battery tariffs. They record your energy consumption and export in half-hourly intervals, providing the granular data needed for time-of-use billing and accurate SEG payments. Without a smart meter, you will be limited to basic tariffs that do not reward flexible energy use or premium export. If you do not have one, your energy supplier can usually arrange a free installation.

Battery optimisation strategies

Battery storage significantly enhances the value of solar panels by allowing you to store surplus generation and use or export it strategically. With smart tariffs, you can program your battery to:

• Charge during cheap periods: Top up your battery from the grid during overnight off-peak windows when electricity rates are lowest.
• Self-consume: Use stored solar energy to power your home when solar generation is low or during peak import tariff times, reducing reliance on expensive grid electricity.
• Export during peak rates: Sell stored energy back to the grid when export rates are highest, typically during evening peak demand.

App-based control and monitoring

Modern energy management is increasingly digital. Apps, like Fuse's, empower homeowners to actively manage their solar and battery systems. These platforms provide granular control over energy flow, allowing you to monitor generation, consumption, and export in real-time. This level of insight enables you to make informed decisions, such as adjusting battery charging schedules or optimising export, to maximise your savings and earnings. Fuse's approach helps homeowners turn their surplus solar generation into a strategic asset, aligning personal savings with broader energy system benefits by rewarding optimisation in line with grid needs.

The future of solar and battery tariffs

The energy landscape is constantly evolving, and tariffs for solar and battery owners are set to become even more sophisticated, offering greater opportunities for savings and grid interaction.

Evolving grid interaction

As more homes adopt solar and battery systems, their collective impact on the grid becomes significant. Future tariffs are likely to further incentivise homeowners to support grid stability by, for example, exporting energy during periods of high demand or reducing import when the grid is constrained. This shift positions homeowners not just as consumers, but as active participants in a decentralised energy system.

Potential for dynamic pricing

While current time-of-use tariffs offer fixed peak and off-peak windows, the trend is towards more dynamic pricing. This could involve rates changing every half-hour based on real-time wholesale market prices. Such dynamic pricing would offer even greater opportunities for optimisation, rewarding those who can adapt their energy use and export in response to market signals.

Long-term savings and sustainability

By embracing smart solar and battery tariffs, homeowners are not only securing immediate financial benefits but also contributing to a more sustainable energy future. The ability to store and strategically deploy renewable energy reduces reliance on fossil fuels and helps integrate more green energy into the National Grid. This "power play" ensures long-term savings and a positive environmental impact, making your home an active part of the energy revolution.

Ready to take control of your home's energy and make the most of your solar and battery system? Fuse Energy offers transparent tariffs and smart tools to help you optimise your usage and maximise your savings. Our 24/7 human support team is always on hand to assist you.