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Can I sell extra electricity from my solar panels back to the grid?

Can you sell surplus solar energy back to the grid in the UK?

Yes, you can sell excess electricity from solar panels through two main schemes: the legacy Feed-in Tariff (FIT) and the newer Smart Export Guarantee (SEG). Below is a structured guide to how it works in 2025.

1. How It Works

  • Generation: Solar panels produce electricity during daylight.
  • Surplus: Excess energy not used onsite flows into the national grid.
  • Payment: You earn money per kWh exported (rates vary by scheme/supplier).

2. Current Schemes

Feed-in Tariff (FIT)

  • Closed to new applicants since April 2019.
  • Existing participants still receive payments for generation (even if consumed onsite) and export (unused surplus).
  • Recent adjustments: Tariffs increased by 13.4% in April 2023 for remaining participants.

Smart Export Guarantee (SEG)

  • Replaced FIT for new solar owners from January 2020.
  • How it works:
  • Suppliers with 150,000+ customers must offer at least one SEG tariff.
  • Payments are per kWh exported, with rates set by suppliers.
  • 2025 examples:
  • OVO SEG Install Exclusive: 20p/kWh (requires OVO-installed solar+battery)[^1].
  • EDF: 15p/kWh (requires being an EDF customer).

3. Recent Trends

  • Solar performance: Median load factors for UK solar fell to 9.4% in 2023/24 due to reduced sunlight hours.
  • Wind comparison: Wind outperforms solar in load factors (20.2% median in 2023/24).
  • Regional variation: South West and East England have the highest solar productivity.

4. Key Considerations

Pros

  • Earnings: Offset installation costs over time (e.g., £1,038/year estimated for some SEG tariffs).
  • Sustainability: Reduces reliance on fossil fuels.

Cons

  • Variable rates: SEG payments depend on supplier competition.
  • Restrictions:
  • Battery requirements for top tariffs (e.g., OVO's 20p rate).
  • System limits (e.g., ≤30kWp for OVO).

Common Mistakes

  • Assuming FIT eligibility: New systems can only use SEG.
  • Ignoring smart meters: Most SEG tariffs require half-hourly export metering.
  • Overlooking supplier requirements: Some tariffs mandate purchasing grid electricity from the same provider.

5. Practical Steps

  1. Install solar panels with MCS-certified equipment.
  2. Apply for DNO approval (needed for systems >3.68kW).
  3. Compare SEG tariffs using current supplier lists.
  4. Submit MCS certificate and proof of ownership to your chosen supplier.

Quick tip: Pair solar with a battery to store daytime excess for nighttime use, reducing reliance on SEG’s variable rates.

[^1]: OVO’s tariff example reflects market-positioned rates as of April 2025. Actual savings depend on system size and usage patterns.

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