Can I sell excess energy generated by my solar panels back to the grid?

Yes, UK homeowners and small businesses can sell surplus solar energy to the grid through government-backed schemes or energy supplier tariffs. This process typically involves registering as a renewable generator and using a smart meter to track exports. Below is a structured guide to how it works, current options, and practical considerations.

---

How to sell solar energy in the UK

1. Smart Export Guarantee (SEG)

• What it is: Mandatory for large suppliers (e.g., EDF, Octopus) to offer payment for exported electricity.
• Process: Your installer registers your system with Ofgem. You choose a SEG tariff from participating suppliers.
• Typical rates: 1p–15p per kWh, depending on supplier and tariff structure. Some tariffs (e.g., Octopus’ Outgoing) offer higher rates during peak demand.
• Requirements: Solar panels + inverter, MCS certification, smart meter.

2. Legacy Feed-in Tariff (FiT)

• Status: Closed to new applicants since 2019 but still pays existing participants (up to 5.24p/kWh exported).
• If applicable: Existing FiT customers receive payments automatically via their energy supplier.

---

Current UK policies and trends (2023–2025)

• Smart Export Guarantee expansion: Some suppliers now offer time-of-use rates, rewarding exports during high-demand periods.
• Growth in battery storage: Pairing batteries with solar panels allows users to store excess energy for later sale at premium rates, increasing potential earnings.
• Regional grants: Local schemes (e.g., Home Upgrade Grant) may supplement solar installation costs, indirectly boosting export potential.

---

Practical advice

✅ Pros of selling solar energy

• Cost recovery: Reduces payback periods (typically 8–12 years) by offsetting installation costs.
• Revenue potential: Households earning £100–£300 annually from exports (varies with system size and usage).
• Sustainability: Supports grid decarbonization and reduces reliance on non-renewable sources.

❌ Cons and common mistakes

• Underestimated setup costs: Export earnings alone rarely cover installation expenses; prioritize self-consumption to maximize savings.
• Tariff complexity: Avoid fixed-rate SEG tariffs if your supplier offers dynamic pricing aligned with peak grid demand.
• Overproduction risks: Systems sized too large for household needs may export excessively at low rates.

---

Solar panel financing in the UK

Finance options (2025 examples)

• 0% interest plans: Octopus Energy and Eon Next offer 0% APR over 1–3 years to spread upfront costs (~£5,000–£15,000).
• Long-term loans: Providers like egg/Cracking Energy extend loans at 10.9% APR over 5–15 years for solar + battery systems.
• Grant-top-up loans: Lendology CIC offers renewable energy loans to supplement government grants.

Key considerations

• Eligibility: Most loans require MCS-certified installations and good credit scores.
• Prioritize savings: Use finance to maximize self-consumption (reducing bills), then optimize exports for secondary income.

---

Real-world example

A Bristol homeowner installs a 4kW solar system using Octopus’ 0% finance over 3 years (£12,000 total cost). They use 50% of generated energy, export the rest at 12p/kWh, and repay £333/month. Annual export income (£220) supplements bill savings (£600/year), shortening payback by 18–24 months.

---

Final recommendation

1. Size appropriately: Match system size to daytime energy use.
2. Combine with storage: Add batteries to shift exports to high-rate periods.
3. Compare SEG tariffs: Review tariffs quarterly (e.g., Octopus Outgoing vs. British Gas Export).
4. Consult installers: MCS-certified providers can optimize designs for both self-use and exports.