If you’ve invested in solar panels, you should already be enjoying lower energy bills, but there is a way to boost your savings even more. If your solar panel system generates more electricity than you use, you can sell the surplus back to the National Grid.
In this guide, we’ll explain how you can earn money for your excess electricity via the Smart Export Guarantee (SEG). We’ll cover how much you can earn and what other ways you can benefit from your unused energy.
Looking for expert solar panel installation advice? Cinergi helps home and business owners in the South to make the most of their investment in renewable energy. Contact us today to book a discovery call.
This article is for general information only and should not be considered financial or legal advice. While we strive to provide accurate and up-to-date information, energy tariffs, government schemes, and regulations may change. We recommend checking with your energy supplier and seeking professional guidance before making decisions about selling excess solar electricity or investing in renewable technology.
How can I get paid for excess solar energy?
Solar panels generate electricity whenever there is daylight, but unless you have a solar battery, any unused power automatically flows back to the Grid.
If you installed solar PV panels before 2019, you may have registered for the Feed-in Tariff (FiT) scheme, which has now expired for new applicants. FiT was a government-backed scheme that paid homeowners for generating renewable electricity. Those already registered continue to receive export payments for up to 20–25 years, depending on their agreement.
If you missed out on the FiT, don’t worry! The Smart Export Guarantee, explained below, offers a way to earn money from your excess solar energy.
Smart Export Guarantee (SEG)
The SEG replaced the FiT scheme and is available to homeowners who generate renewable electricity with solar panels. Under the scheme, certain energy suppliers with over 150,000 customers must offer an SEG tariff to pay for excess energy exported back to the Grid.
How does the SEG work?
- You need an eligible solar PV system.
- Your system must be certified under the Microgeneration Certification Scheme (MCS).
- You need a smart meter or an export meter to measure your surplus solar energy.
- You must sign up with a supplier that offers an SEG tariff.
How much does SEG pay?
The rates vary depending on the supplier. Unlike the fixed rates of the old FiT scheme, suppliers set their own SEG tariffs. Some offer as little as 1p per kWh, while others pay up to around 20p per kWh. Comparing tariffs can make a big difference in how much money you can earn to offset future electricity bills.
How much can I earn from selling solar energy?
The amount you can earn depends on the quantity of excess electricity generated and your SEG tariff rate.
For example, if your system exports 1,500 kWh per year and your SEG tariff pays 5p per kWh, you would earn £75 annually. If you switched to a tariff offering 15p per kWh, this could increase to £225 per year.
Some energy suppliers offer tariffs that pay higher rates for electricity exported during the evening, which is the peak demand period. Think of it as happy hour for your solar power! When demand is higher, you earn more.
What other ways can you benefit from excess energy, besides selling it back to the grid?
Aside from selling solar power to the Grid, there are other ways to benefit from the energy you don’t need:
1. Store excess electricity in a battery
A battery storage system stores unused solar energy for later use, which is particularly helpful at night or in the winter months when sunlight hours are reduced.
If your battery system has a hybrid inverter, it can make you even more efficient. This intelligent technology decides when to use, store, or sell power for maximum savings and minimum waste.
2. Use excess energy for high-energy appliances
Instead of exporting your extra solar power, make the most of it by running your energy-hungry appliances when your solar panels generate electricity at their highest capacity, i.e., midday to early afternoon on sunny days. That’s the perfect time to run the dishwasher, washing machine or EV charger.
3. Invest in an air source heat pump
Combining solar panels with an air source heat pump (ASHP) uses up more of the power your solar panels produce. Heat pumps convert the outside air to provide heat and hot water to your home, and they rely on electricity to work. By combining the two technologies, you can reduce your reliance on fossil fuels and lower your carbon footprint even further – not to mention your energy bills.
4. Use a solar immersion diverter to heat water
A solar immersion diverter (like Eddi or I-Boost) automatically redirects excess solar energy to heat the water in your hot water cylinder. Instead of sending surplus electricity back to the national grid for a small return, this clever device helps you make the most of your unused solar power, reducing your reliance on gas or electric water heating and cutting your energy bills.
Thinking of installing solar panels? Contact Cinergi
With over 40 years of combined experience, Cinergi is an expert in all kinds of renewable energy solutions, from solar panels to heat pumps. As a trusted solar panel installer across the South Coast, we’re here to help you make the most of the sun’s energy to reduce your reliance on the grid, lower your bills, and reduce your carbon footprint.
Let’s make sure you get the most out of your investment to offset future electricity bills. Get in touch today to chat about your needs or to book a visit to our showroom.
Conclusion
Selling excess solar energy is a great way to reduce carbon emissions, lower future electricity bills, and contribute to a sustainable future. The Smart Export Guarantee allows you to earn money from surplus electricity to offset future electricity bills. Alternatively, you can benefit from storing surplus solar energy and running large appliances when your panels absorb the most energy during sunny periods. Also, consider investing in an air source heat pump to use your excess energy wisely and make your home even more energy efficient.
Frequently asked questions about selling excess solar energy
Yes, if you have a battery storage system, you can store some energy for personal use and sell the remaining excess electricity. Some systems include hybrid inverters to allow you to export at peak times to maximise payments.
Yes, you need either a smart meter or an export meter to measure the electricity you send back to the grid. Your energy supplier may provide one as part of your Smart Export Guarantee agreement.
