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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

  1. Solar saves money in two ways: by using the electricity yourself, and by being paid for what you export.
  2. Using it yourself is worth more: each unit saves about 26p, compared with around 12p for a unit you export.
  3. 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.
  4. Time-of-use tariffs charge less at certain times, usually overnight. A battery can charge then and run your home when electricity is dearer.
  5. Plug-in kits normally earn nothing for exports, so their value is in what you use.
Where the money goes with solarYou buy electricity from the grid at around 26p per kWh on average under the price cap. Exported electricity typically earns around 12p per kWh. Every unit of your own solar you use saves buying a unit at around 26p.Use your own solar:saves about 26pfor each kWhExport: around 12pImport: about 26pAverages: Ofgem price cap Oct–Dec 2026; typical export rate (EST).
Using your own solar electricity is worth about twice as much as exporting it.

Layer 2

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

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

The shape of a typical time-of-use dayExample only: a cheaper rate overnight, a standard rate in the day and, on some tariffs, a more expensive peak in the late afternoon and early evening. A battery can charge in the cheap window, and solar panels generate in the middle of the day.Example tariff shape (times and prices vary)CheapStandardPeakStandardmidnight6amnoon6pmmidnightChargesSolar panels generateBattery in useCheck your own tariff's times and rates before relying on this.
An example of how a time-of-use day can look. Real tariffs differ.

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.

Full answer with sources

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.

Full answer with sources

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.

Full answer with sources

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.

Full answer with sources

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.

Full answer with sources

Which tariff? Tell SolarBot what you have (panels, battery, electric car) and it will explain the trade-offs.

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Official sources

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.