In the UK, many people associate solar energy with sunny climates, which might lead them to believe that solar power isn’t the ideal solution due to the country’s unpredictable weather. However, the truth is that solar power is gaining popularity for its clean, renewable nature and the independence it offers, even in regions where the sun doesn’t shine as frequently.One of the biggest questions homeowners have when considering solar panels is: Can I sell excess energy from solar panels UK? The answer is yes, and it’s a great way to make the most of your solar energy system.
Understanding the Smart Export Guarantee (SEG) in the UK
The Smart Export Guarantee (SEG) is a government initiative launched in 2020 to help small-scale renewable energy producers, including homeowners, earn money by selling their surplus electricity back to the National Grid. By using the SEG, eligible homeowners can be compensated for each unit of electricity they export, allowing them to recoup their solar panel investment sooner and potentially even profit from it.
How Does the SEG Work?
Under the SEG scheme, licensed electricity suppliers with over 150,000 customers are required to offer a minimum of one export tariff to small-scale renewable energy generators. This means that if you have solar panels and generate surplus energy, you can sign up with one of these suppliers to receive payments for the electricity you export. The SEG offers two main types of tariffs:
- Fixed-rate Tariffs: These offer a consistent rate per kilowatt-hour (kWh) for the electricity you export, regardless of market conditions.
- Variable-rate Tariffs: With these tariffs, the payment rate changes according to supply and demand. This can mean higher payouts during peak times, though the rate may vary.
These tariffs must be above zero, so you’re guaranteed some level of payment. However, it’s worth comparing offers from different suppliers to find the best rate, as some companies may be more competitive than others.
Steps to Start Selling Your Surplus Electricity
If you’re interested in selling your excess solar electricity, here’s how to get started:
- Ensure Your System is Certified: Your solar PV system must be certified under the Microgeneration Certification Scheme (MCS) or an equivalent standard to qualify for the SEG. This certification ensures your system meets specific safety and quality standards, which is essential for participating in the SEG.
- Install a Smart Meter: To receive SEG payments, you’ll need a smart meter capable of measuring the electricity you export. A smart meter records half-hourly export data, enabling accurate tracking of how much surplus electricity you send back to the grid. If you don’t already have a smart meter, your energy provider can help arrange installation.
- Choose Your SEG Licensee: Not all energy suppliers offer the same rates or terms under the SEG. Comparing different suppliers’ tariffs can help you find one that aligns with your needs, whether you prefer a fixed or variable rate. The Energy Saving Trust and Ofgem’s websites provide helpful resources for comparing SEG tariffs and finding an approved supplier.
- Apply for the SEG Tariff: Once you’ve selected a licensee, you can apply for their SEG tariff. You’ll need to submit documents such as your MCS certification, smart meter details, and other information about your solar panel system. Once approved, you’ll enter a contract specifying the tariff, payment frequency, and any conditions related to your exported electricity.
- Start Earning from Your Solar Power: After approval, you’ll start receiving payments for every kWh of electricity you export to the grid. These payments can be made quarterly or annually, depending on your supplier’s terms. In addition to covering some or all of your energy costs, these payments can reduce the payback period on your initial solar panel investment.
Maximizing Your SEG Earnings
To make the most of your solar power setup and SEG earnings, consider these tips:
- Use Energy Wisely: Maximize self-consumption by using energy-intensive appliances during the day when your panels are generating power. This reduces the amount of electricity you need to buy from the grid.
- Install Battery Storage: Battery storage systems allow you to store excess electricity for use at night or during periods of low sunlight. Some suppliers allow you to export stored energy, potentially increasing your SEG payments.
- Stay Updated on Tariffs: SEG tariffs can change, and new offers may arise. Regularly checking for competitive rates can ensure you’re maximizing your earnings.
Is Solar Power Worth It in the UK?
Despite the UK’s less predictable sunlight, solar panels are proving valuable to many homeowners. Advances in solar technology mean that even on cloudy days, modern panels can capture enough energy to significantly offset household electricity costs. Combined with the SEG, solar energy offers a viable path toward reducing reliance on the grid and contributing to a more sustainable energy landscape.
Selling surplus solar electricity is an excellent way for UK homeowners to accelerate their solar panel payback period, decrease electricity bills, and even turn a profit. So, if you’re considering installing solar panels or are already generating more power than you need, the Smart Export Guarantee makes it possible to earn from the power of the sun, even in the UK’s varied climate.
