SEG: Selling solar power back to the National Grid

Investing in the best solar panels is advantageous in more ways than one. By generating your own energy, not only can you save on your energy bills, you can also earn money through the Smart Export Guarantee (SEG) scheme by selling excess energy your panels produce back to your energy supplier.

If you have solar panels or are interested in installing some, this comprehensive guide explains how SEG works, how to apply and how you can maximise the earnings from your solar panels.

Despite the long process and admin involved, it is worth selling your excess energy to the grid as it can significantly reduce the break even point of your solar panel system. Installing an export meter and feeding the excess power back to your supplier could earn you up to 30p per kWh sent back, helping you pay off your initial investment.

That said, due to current high energy prices, it’s worth maximising the use of the solar power you generate, reducing the amount you will have to sell back to the grid. This is because most SEG tariffs offered don’t come close to the current price of electricity (27.69p per kWh).

Even with less energy available, selling your excess energy to the National Grid also means solar energy doesn’t go to waste, and can be channelled to other homeowners who can’t afford to install solar panels so they can use it over coal and natural gas.

The Smart Export Guarantee (SEG)

The Smart Export Guarantee (SEG) is a power-selling solar panel scheme introduced by the UK Government in 2020. Essentially, any energy supplier with more than 150,000 domestic electricity customer is mandated by the government to offer a SEG tariff. Smaller suppliers can choose whether to offer tariffs or not.

The scheme is open to any homeowners with solar panels, anaerobic digesters, wind turbines, hydro generators or combined heat and power micro-generators. 

If you have solar panels, you’re likely to benefit more since the panels generate a lot of extra energy, which you can convert into money.

The Feed-in Tariff (FiT)

This method of selling solar power was introduced by the UK Government in 2010 to promote the uptake of renewable energy.

Homeowners and business owners who installed renewable technology could get paid for all the energy generated if they were registered with a provider under the scheme, whether used by them or not. They also earned money by sending surplus energy back to the supplier. 

While the FiT scheme was closed to new applicants in 2019, those already registered can continue to receive payments for 20 years after the eligibility date.

To start benefiting from this scheme, you first need to register for a SEG tariff through an approved energy supplier. 

Find out if your energy supplier offers export tariffs and contact them help you sign up for the SEG scheme. You can also shop around for suppliers with the best rates and sign up under them. It’s worth noting many suppliers have preferential rates for their own customers.

After signing up, you can benefit from the Smart Export Guarantee in 2 different ways:

• Energy savings: When you install solar panels, you’ll save significant money on your energy bills. Solar power is not only environmentally-friendly but also more effective and cost-efficient. This means less money leaves your pocket after the initial investment to have solar panels installed.
• Surplus energy export: Your supplier will also pay you for hosting a solar panel on your home and exporting the surplus energy generated to them. To help you get the readings accurately and know how much they owe you, you’ll need to install a half-hourly meter.

• A renewable power-generating system, such as solar panels, anaerobic digesters, wind turbines, hydro generators or combined heat and power micro-generators. 
• A half-hourly meter to export readings to your supplier. Ask them to help you install a smart meter if you don’t have one yet. Most suppliers will do this for free, but if your system produces more than 30kWh of electricity, you’ll need to buy a special export meter.
• You must not be registered under the Feed in Tariff (FiT) to be eligible for SEG. If you still want to claim SEG, you can keep your FIT generator status but must give up your FIT exporter status.
• Your solar panel installation must be certified under the SEG eligibility requirements.

To choose a SEG tariff, you should shop around for the best deal before signing up. There are 15 electricity suppliers in the UK that will pay you for selling power under the SEG tariff. 

You can find the list of the SEG tariff suppliers on the Solar Energy UK website. Suppliers offer different rates for different energy packages, some fixed, and some variable. Therefore, you should keep checking the rates and confirming with other suppliers to ensure you stay under the best deal.

While you don’t have to sign up with your current energy provider, it’s worth noting providers generally offer a better SEG rate for their existing customers, so if in doubt, get in touch to ask them.

If you’re a renewable energy owner not registered under FIT, the Smart Export Guarantee is the best option for selling power to the National Grid. However, the SEG comes with some drawbacks, which include:

• Lower payments: Solar power producers who sell energy under the SEG scheme are paid much less than those registered under the FIT scheme. Under FIT, energy owners were initially paid more than 40p per kWh of electricity exported. Though this figure has dropped due to the increasing number of homes installing solar panels, they still earn more than SEG, which pays between 5p–15p per kWh depending on the supplier.
• The hassle of upgrading your meter: To get paid for selling solar power under SEG, you’ll need to upgrade your electricity meter to a smart half-hourly meter. 
• No DIY installations: To be eligible for the Smart Export Guarantee, your solar panels must be installed by a solar installer accredited by the Microgeneration Certification Scheme. You can find registered installers in your area by using Find a Builder and typing “solar panel installers” into the postcode search tool.

The amount of money you can earn selling solar power back to the National Grid will depend on several interdependent factors. Some of those factors include:

• The size of your home
• The size and number of your solar panels
• The location of your home 
• The amount of power you generate; and
• The energy supplier under which you register. 

For instance, if you have a 3-bedroom house and install a 4.5kW solar system, you could earn as much as £331 per year from the SEG scheme*.

Your earnings from SEG may also differ depending on location since different areas of the country receive different amounts of sunshine, thereby generating different amounts of energy. 

*Figure accurate as of January 2026, based on a 3-bedroom house in the East of England.

If you are looking for the best deal for selling solar power back to the National Grid, Octopus are well worth considering. 

As of the time of writing, E.ON provides the highest payout of 16.5p per kWh. However, this offer is exclusive to the company’s customers.

Note that you’ll always earn better rates if you export power to the same supplier from which you import it. 

Octopus also has an Agile Outgoing Tariff where customers selling power get paid according to wholesale prices, which are always shifting. 

This table shows the amount you can earn from the highest paying suppliers in 2026.