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Guide 8 of 126-minute read · short version 1 minute
Solar tariffs and export payments
How solar saves you money, how the Smart Export Guarantee pays for what you export, and how cheap-rate tariffs work with a battery.
Looking for a specific answer? Our FAQ page Export payments and the Smart Export Guarantee answers 5 questions, each with its official sources.
Start here
The short version
- Solar saves money in two ways: by using the electricity yourself, and by being paid for what you export.
- Using it yourself is worth more: each unit saves about 26p, compared with around 12p for a unit you export.
- Under the Smart Export Guarantee, the larger suppliers in Great Britain must offer you an export tariff, if your system has an MCS certificate. It doesn’t apply in Northern Ireland.
- Time-of-use tariffs charge less at certain times, usually overnight. A battery can charge then and run your home when electricity is dearer.
- Plug-in kits normally earn nothing for exports, so their value is in what you use.
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In more detail
Export payments, cheap-rate tariffs and how they fit together.
What a unit of solar is worth
Under Ofgem’s price cap for 1 October to 31 December 2026, electricity costs on average 26.32p per kWh for customers paying by Direct Debit, plus a standing charge of 54.83p a day. This rate excludes VAT, which the government has removed from domestic electricity bills from 1 October 2026 to 31 March 2027. The Energy Saving Trust says typical export payments are around 12p per kWh. So the more of your solar electricity you use as it is made, the more you save. The standing charge stays the same whatever you generate.
The Smart Export Guarantee
- What it is: an Ofgem scheme requiring electricity suppliers with at least 150,000 domestic customers to offer export tariffs to small low-carbon generators, including solar of up to 5 MW. Smaller suppliers can choose to offer one.
- What it pays: each supplier sets its own rate and contract length, but the rate must always be above zero.
- What you need: metered exports, which in practice means a smart meter that records export, and, for solar of up to 50 kW, an installation and installer certified under MCS or an equivalent scheme. Without that, a supplier does not have to pay you under the scheme.
- Choosing a tariff: compare rates, and check whether a tariff is only available if you also buy your electricity from that supplier.
- Where: Great Britain only. In Northern Ireland, ask your supplier what, if anything, it pays.
Older systems on the Feed-in Tariff, which closed to new applicants in 2019, carry on being paid under that scheme’s terms.
Time-of-use and smart tariffs
A time-of-use tariff charges different prices at different times of day, usually with a cheap window overnight and sometimes a dearer peak in the late afternoon and early evening. They need a smart meter. They suit homes that can move their use into the cheap hours: a battery that charges overnight, an electric car, or a hot water tank with an immersion heater on a timer.
With a battery, a time-of-use tariff can save money all year round, including in winter, when panels make little. Before switching, compare the cheap and normal rates and the standing charge against your own pattern of use, not just the headline cheap rate. See Home batteries.
No battery fitted? A portable power station can also be filled at a cheap night rate and used at dearer times. The saving is modest, about £55 a year for a 2 kWh unit used fully every day on Economy 7, so it suits people who want one anyway. See charging a portable power station on a cheap rate.
Plug-in solar and exports
Plug-in kits are designed for using the power yourself. Citizens Advice says you cannot be paid for unused power from a plug-in kit under the current rules, and export payments need an MCS-certified installation, which a plug-in kit won’t normally have. See Plug-in solar explained.
Northern Ireland
The Smart Export Guarantee is a Great Britain scheme. Northern Ireland has its own regulator and supplier arrangements, so ask your supplier what it offers for exported electricity. See Solar in Northern Ireland.
Key words
- SEG
- Smart Export Guarantee: the scheme for export payments in Great Britain.
- Unit rate
- The price per kWh you pay for electricity.
- Standing charge
- A fixed daily charge, whatever you use.
- Time-of-use tariff
- A tariff with different prices at different times of day.
Layer 3For the technically mindedMetering, the value of storage and choosing between tariffs
Metering
Ofgem’s guidance says generators are entitled to Smart Export Guarantee payments based on actual meter readings, although some suppliers offer other payment models. A smart meter records import and export separately, often half-hourly, which is also what makes time-of-use tariffs possible.
Charge from solar or from the grid?
With both an export tariff and a cheap overnight rate, it is not always best to store solar. Storing a kWh of solar gives up the export payment for it. If your export rate is higher than your cheap import rate, it can be better to export at midday and fill the battery overnight. Allow for round-trip losses of around 10% in total: a kWh bought at 10p and stored costs about 11.1p by the time you use it.
Comparing tariffs properly
Work out a year’s cost under each tariff from your own half-hourly data where you can: import in each time band at its rate, plus standing charges, minus export income. Check exit fees, how long the rates are fixed, and any requirement to use a particular battery, inverter or electric car charger.
Frequently asked questions
What is the Smart Export Guarantee?
The Smart Export Guarantee (SEG) requires electricity suppliers with at least 150,000 domestic customers to offer export tariffs to small-scale low-carbon generators, including solar PV up to 5 MW, for electricity they export to the grid; smaller suppliers can choose to offer one. You apply to a supplier that offers a SEG tariff. The supplier decides the rate and contract length, but the tariff must always be above zero pence per kilowatt hour.
Do I need MCS certification to get Smart Export Guarantee payments?
Usually, yes. Under the scheme rules, solar of up to 50 kW must be installed by a certified installer and certified under MCS or an equivalent scheme; without that, a supplier does not have to pay you under the SEG, although some may choose to. The Energy Saving Trust says most energy suppliers want a valid MCS certificate, so check what your chosen supplier needs before you sign an installation contract.
How much will my supplier pay for exported electricity?
Rates are set by each supplier, so compare them. Ofgem's rule is that a SEG tariff must always pay more than zero pence per kilowatt hour exported, and that generators are entitled to payments based on actual meter readings, even if some suppliers offer other payment models.
Does the Smart Export Guarantee apply in Northern Ireland?
The Smart Export Guarantee is an Ofgem scheme covering Great Britain. Northern Ireland has its own regulator and supplier arrangements, so ask your supplier what, if anything, it pays for exported power.
Can plug-in solar earn Smart Export Guarantee payments?
Not normally. Plug-in kits are designed for self-consumption, Citizens Advice says you cannot be paid for unused power under the current rules, and Smart Export Guarantee payments need an MCS-certified (or equivalent) installation. Your saving comes from using the power yourself.
Which tariff? Tell SolarBot what you have (panels, battery, electric car) and it will explain the trade-offs.
Ask SolarBotOfficial sources
- Ofgem: Smart Export Guarantee, guidance for generators
- Ofgem: Smart Export Guarantee, information for electricity suppliers
- Ofgem: Changes to the energy price cap between 1 October and 31 December 2026
- Energy Saving Trust: Solar panels
- Energy Saving Trust: Plug-in solar panels
- Citizens Advice: six things to know before plug-in solar panels hit the shelves
- NIE Networks (Northern Ireland electricity network), homepage
How we check these pages · Recent changes · All solar FAQs · Glossary
Rewritten 2 October 2026 (first published 20 September 2026). General information, not legal, electrical or financial advice. Confirm current rules before you buy or connect anything.