If you generate your own solar power, you’ll want to get the best return on every unit of energy produced. Net metering and export tariffs are two ways solar PV owners can get paid or credited for excess electricity sent back to the grid. Understanding how these schemes work is crucial for maximising your solar investment, cutting energy bills, and planning your system for the best long-term value. In the UK, export tariffs—especially the Smart Export Guarantee (SEG)—play a key role in helping homeowners unlock the full value of their solar panels.
7.2. Net Metering Explained
Net metering is a billing system used in countries like the US and Australia. It allows solar PV owners to “bank” excess electricity on the grid, receiving a credit for every kWh exported. When you use more electricity than you generate (e.g., at night), you draw from these credits—effectively spinning your meter backwards.
- Net metering vs. export tariffs:
Net metering directly offsets your electricity bill at retail rates, while export tariffs pay you a set rate (usually lower than what you pay for electricity) for every kWh sent to the grid. - Not available in the UK:
The UK does not offer true net metering. Instead, homeowners are paid for exports via dedicated export tariffs such as SEG.
7.3. How Export Tariffs Work in the UK
The main export scheme now available is the Smart Export Guarantee (SEG):
-
How SEG works:
You’re paid for every unit (kWh) of electricity exported to the grid, typically tracked by a smart meter. -
Payment rates:
SEG rates vary by provider, usually between 2p and 20p per kWh. Rates are set by energy suppliers and can be fixed or variable. -
Eligibility:
- Your solar PV system must be MCS-certified.
- You need a smart meter capable of half-hourly export readings.
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Major SEG providers:
- Octopus Energy (e.g., Agile Outgoing, Fixed Outgoing)
- E.ON Next
- British Gas
- EDF Energy
- ScottishPower
- Bulb (now part of Octopus)
- Others—see Ofgem’s SEG list
-
How to switch/compare tariffs:
Compare rates regularly—switching SEG providers is straightforward and can boost your export income.
7.4. Other UK Export Schemes (Past & Present)
- Feed-in Tariff (FiT):
The FiT scheme closed to new applicants in 2019, but many early adopters still benefit from generous export and generation payments. - Local/community export schemes:
Some local councils or community energy groups offer special export rates or peer-to-peer trading pilots, but these are limited. - Peer-to-peer energy trading:
Emerging platforms (e.g., Powerpeers, Piclo) allow solar owners to sell electricity directly to neighbours or businesses, but this is still a niche market.
7.5. How to Maximize Export Revenue
- Increase export:
- Use smart controls to run appliances when solar output is highest.
- Consider battery storage to store excess energy for later use or export at peak times (if tariff allows).
- Balance self-consumption vs. export:
Generally, using your own solar power saves more than exporting, since SEG rates are lower than retail electricity prices. - Example calculation:
A typical UK home with a 4kW system might export 1,500 kWh/year. At 15p/kWh, that’s £225/year in SEG payments—plus additional bill savings from self-consumption.
7.6. Net Metering vs. SEG: Pros & Cons
| Feature | Net Metering (US/AUS) | UK SEG Export Tariff |
|---|---|---|
| Export Value | Full retail rate | Supplier-set rate (lower) |
| Bill Credits | Yes, kWh-for-kWh | No, separate payments |
| Simplicity | Very simple | More complex (metering) |
| Availability in UK | Not available | Yes |
| Best For | High self-consumption | Maximising export income |
| Downside | Can discourage grid upgrades | Lower export value |
Pros for UK homeowners:
- Guaranteed payment for every exported unit
- Multiple SEG providers to choose from
Cons: - Export rate is less than retail price
- No true “credit” system for offsetting bills
7.7. Metering, Monitoring & Payment Process
- How export is measured:
Your smart meter tracks every kWh exported. Most SEG providers require half-hourly readings. - Billing/payment cycles:
Payments are typically made quarterly or annually, depending on provider. - Troubleshooting:
If you’re not receiving export payments, check your smart meter’s export function and contact your SEG provider.
7.8. FAQs
Can I get true net metering in the UK?
No—UK schemes only pay for export, not kWh-for-kWh bill credits.
No—UK schemes only pay for export, not kWh-for-kWh bill credits.
How do I sign up for SEG?
Contact your energy supplier or a dedicated SEG provider. You’ll need MCS certification and a compatible smart meter.
Contact your energy supplier or a dedicated SEG provider. You’ll need MCS certification and a compatible smart meter.
What happens if I switch energy suppliers?
You can switch SEG providers just like you switch electricity suppliers. Make sure your new provider offers a competitive SEG rate.
You can switch SEG providers just like you switch electricity suppliers. Make sure your new provider offers a competitive SEG rate.