A solar PV system lowers your electricity bill from the moment it powers appliances that would otherwise draw energy from the grid. Solar export tariffs add another return: a payment for surplus electricity sent back to the network. The rate matters, but it should never be the only figure used to judge whether solar is right for your home or business.
For most properties, using solar power as it is generated delivers the greatest saving because each unit used on site avoids buying a full-priced unit of electricity. Export payments can still make a meaningful difference, particularly in summer or for sites with low daytime demand. The best outcome comes from designing the system around how your property actually uses power.
How solar export tariffs work
The Smart Export Guarantee, usually shortened to SEG, requires larger electricity suppliers to offer at least one tariff that pays small-scale generators for renewable electricity exported to the grid. Suppliers set their own rates and terms, so payments vary considerably.
Your smart meter records the electricity leaving your property. Your export supplier then pays for those measured kilowatt-hours, commonly shown as kWh, at the agreed tariff rate. For example, exporting 1,000 kWh in a year at 15p per kWh would produce £150 in export payments.
The export rate is separate from the price you pay to import electricity. That distinction is crucial. If you buy electricity for 28p per kWh and receive 15p per kWh for exporting it, using a solar-generated unit yourself is usually worth more than sending it away. This is why daytime consumption, smart controls and battery storage are central to a well-planned solar installation.
Fixed rates and time-based tariffs
Some suppliers offer a straightforward fixed export rate, paying the same amount for every exported unit. These tariffs are simple to understand and can suit households that want predictable returns.
Others offer rates that change by time of day, often rewarding export when demand on the grid is high. These can pay more at certain times, but the headline figure is not always the rate you will receive for most of your generation. A time-based tariff may work well where a battery can hold surplus power and export it during higher-value periods, provided the tariff terms permit this approach.
Variable tariffs can also change over time. Before switching, check whether the rate is fixed, how often it may change, whether there is a minimum contract term and whether you must buy imported electricity from the same supplier.
What you need before you can be paid
Eligibility requirements vary between suppliers, but a compliant installation and accurate metering are the foundations. Most export suppliers require a solar system to be installed under the Microgeneration Certification Scheme, or MCS, and to have the appropriate network approval or notification in place.
For a typical domestic system, your installer will manage the Distribution Network Operator process as part of the project. This confirms that the local network has been informed about your generation equipment and that it meets the relevant connection requirements. You should receive the supporting paperwork with your handover documents.
You will also usually need a working smart meter capable of recording half-hourly export readings. Without measured export data, a supplier cannot calculate an SEG payment accurately. If your meter is not recording export correctly, speak to your electricity supplier before assuming the solar system is at fault.
Properties on older Feed-in Tariff arrangements need particular care. Some customers receive a deemed export payment through the Feed-in Tariff, while others have metered export. You cannot generally receive two export payments for the same exported electricity, so it is worth checking your current arrangement before applying for a new tariff.
Why the highest export rate is not always best
Comparing solar export tariffs only by pence per kWh can lead to the wrong decision. The best tariff depends on your import tariff, your daily energy pattern, whether you have a battery and the contract conditions.
A homeowner who is out all day may export a large share of their solar production. They could benefit from a competitive standard export rate, but may achieve better overall savings by charging a battery for evening use. A household with an EV charged at home, a heat pump or regular daytime occupancy may already use much more of its generation directly. In that case, export income could be lower, while bill savings are higher.
The same principle applies to commercial premises. A workshop, office, school or retail site that operates in daylight hours may consume most of its solar output on site. That is often excellent financially, even if the export payment is modest. A business that closes early, operates seasonally or has substantial weekend generation may have more surplus electricity and should give export arrangements greater weight in its financial planning.
Do not overlook import prices either. A tariff offering a generous export payment may charge more for imported electricity, or may require a particular import deal. Look at the full annual picture rather than one attractive number.
Can a battery improve the value of solar?
A battery does not create more solar generation, but it gives you more control over when that energy is used or exported. Instead of exporting surplus solar at midday, you can store it for use after work, when electricity demand at home is often highest.
For many households, this improves solar self-consumption and reduces imported electricity in the evening. It can be especially useful for properties with electric cooking, a heat pump, an EV charger or high overnight usage. Businesses may use battery storage to reduce peak demand, support resilience or make better use of energy generated outside operating hours.
Whether a battery pays back quickly depends on its size, the property’s consumption profile, electricity prices and tariff rules. A battery that is too large may spend much of the year underused. One that is too small may fill early and still leave substantial solar exports. A proper survey should assess interval data where available, expected generation, roof orientation, future EV or heating plans and the equipment’s usable capacity.
There is also an important tariff detail. Some export suppliers have specific rules around electricity that has been imported from the grid and later exported from a battery. Read the terms carefully, particularly on tariffs with higher or time-sensitive rates. A professionally configured system should make it clear how the battery is intended to operate.
Getting more from your solar generation
The most valuable solar electricity is often the electricity you do not need to buy. Small changes in timing can improve that without affecting day-to-day comfort. Running appliances such as dishwashers and washing machines during sunny periods, scheduling an EV charge intelligently and using immersion or heating controls where suitable can all increase on-site use.
Smart monitoring is equally useful. It shows when your property generates, consumes, imports and exports energy, helping you spot whether a tariff or battery setting needs attention. It also gives business owners a clearer view of how solar is contributing to operating costs and carbon reporting.
A solar design should not be based solely on fitting the maximum possible number of panels. Roof space, shading, electrical demand, future expansion and the local connection position all influence the right specification. A smaller, well-matched system can outperform an oversized system that regularly exports low-value energy while leaving little budget for measures that improve self-use.
Choosing an export tariff with confidence
When comparing tariffs, start with the rate, then look beyond it. Check whether the payment is fixed or variable, whether it applies at all times or only at selected periods, how readings are collected and when payments are made. Confirm if there are exit fees, eligibility restrictions or requirements to hold an import tariff with that supplier.
It is sensible to review your export deal periodically. Tariffs change, household routines change and adding a battery, EV charger or heat pump can alter the best option. Keep your MCS certificate, DNO paperwork, commissioning documents and meter details together, as suppliers may request them when setting up an account.
At Evolve Electrical Contractors, we design solar and battery systems around real energy use, not headline figures alone. A clear survey and tailored proposal can show how much power you are likely to use, export and save, so you can make a confident decision with no pressure, just honest advice.
A good export tariff should reward the surplus your system produces. A good solar system should reduce the energy you need to buy in the first place – and that is where long-term value usually starts.