Table of Contents

  1. Key Takeaways
  2. How Does Selling Electricity Back to the Grid Work?
  3. Eligibility Requirements in the UK
  4. Available Schemes and Incentives in the UK
  5. Alternative Options for Selling Electricity Back to the Grid in the UK
  6. Steps to Set Up and Start Selling Electricity Back to the Grid
  7. Financial Benefits and Considerations
  8. Maximise Your Solar Investment: Start Selling Electricity Back to the Grid Today

 

Selling electricity back to the grid has become an increasingly popular way for homeowners and businesses to maximise the value of their renewable energy systems. With the UK government aiming for net-zero emissions by 2050, there has been a significant push to support renewable energy adoption. In 2023, it was reported that over 1 million homes in the UK had solar panels installed, contributing to a significant portion of the country’s renewable energy supply. 

This guide explains how exporting excess energy can benefit you financially and explores the various schemes and options available in the UK.

Key Takeaways

  • Over 1 million homes in the UK now have solar panels, highlighting the growing trend of renewable energy adoption.
  • With SEG rates averaging between 3-10 pence per kWh, optimizing your system and energy management can lead to significant financial returns.
  • Beyond SEG, options like peer-to-peer trading, PPAs, and community energy projects provide flexible ways to sell surplus energy.
  • Ensure your system is MCS certified and equipped with the proper metering to qualify for export schemes.
  • Investing in battery storage allows you to sell energy during peak times, maximizing your returns.

Electric towers lined up under the blue calm sky, essential for selling electricity back to the grid.

How Does Selling Electricity Back to the Grid Work?

Selling electricity back to the grid involves exporting excess electricity generated by renewable systems, like solar panels, to the national grid. Typically, solar photovoltaic (PV) systems produce more energy during peak sunlight, creating a surplus. This surplus can be fed back into the grid using inverters and metering systems designed to measure energy flow accurately. Energy providers purchase this surplus electricity, compensating you based on agreed rates or schemes, such as the Smart Export Guarantee (SEG).

Eligibility Requirements in the UK

To participate in selling electricity back to the grid, individuals and businesses must meet specific eligibility criteria. Your renewable energy system, for instance, must be Microgeneration Certification Scheme (MCS) certified. Additionally, you will need an approved metering system like a smart metre or an export metre to measure the amount of energy exported. Statistics show that around 75% of new solar installations in the UK are SEG-eligible, demonstrating the growing accessibility of these schemes.

Available Schemes and Incentives in the UK

  • Smart Export Guarantee (SEG): Introduced in 2020, the SEG replaced the previous Feed-in Tariff (FiT) scheme. It mandates licensed electricity suppliers to offer payment to small-scale low-carbon generators for the electricity they export to the grid. The average SEG rate in the UK ranges between 3 and 10 pence per kWh, depending on the provider. While it may seem modest, efficient energy management and system optimization can significantly increase returns.
  • Major suppliers like Octopus Energy and British Gas offer competitive SEG rates. It is crucial to review each provider’s offer and choose the best rate based on your energy production and usage.

A calculator over the solar panels illustrates the financial aspects of selling electricity back to the grid.

Alternative Options for Selling Electricity Back to the Grid in the UK

  • Peer-to-Peer Energy Trading: Platforms such as Power Ledger are emerging, allowing households to sell excess electricity directly to neighbours or businesses. This decentralised approach enhances flexibility and profitability.
  • Private Power Purchase Agreements (PPAs): Businesses can negotiate PPAs to sell electricity directly to large consumers or organisations, often at higher rates than traditional SEG.
  • Community Energy Projects: By joining community energy initiatives, individuals and businesses can collectively manage and sell their electricity, increasing bargaining power and profit potential.
  • Battery Storage Systems: Investing in battery storage allows you to store surplus energy and sell it during peak demand hours when electricity rates are higher. This can be a highly effective way to maximise the returns on your solar investment.
  • Microgrid Participation: Some regions offer opportunities to participate in localised microgrids, where users share energy. This setup enables greater flexibility and control over electricity sales.

There are two options for selling renewable energy back to your electricity supplier. If you’re prepared to fill in a lot of forms, you can get paid the same price per unit exported as you pay to buy it off your supplier’s net metering. Alternatively, there’s an easier option where you get paid less per unit generated, but it’s a lot less hassle.

THE NET METERING OPTION

If you’ve invested in some serious energy-generating kit, and you expect to produce a lot of surplus electricity, you’ll want to set up a net metering arrangement. This means that your energy supplier will pay you a decent price for every spare kWh of electricity generated that you don’t need yourself. It does mean you’ll need to get an OFGEM-approved Export Meter – your supplier may be able to help. You also get to keep your ROC entitlements with this option.

NPower-Microgeneration Scheme

0800 316 2610 – www.npower.com

With the npower juice deal, domestic customers can get paid the same amount for their exported electricity as the standard tariff follow on unit rate they pay for the electricity that they buy from npower (this tariff may vary regionally).You need to send off a meter reading every six months, and after the calculations are processed you are paid by a personal cheque within 60 days. This scheme is currently open for application until April 2007, after this date npower Juice are thinking about revamping the scheme. currently offer export meters for £60. Also you do get to keep the right to claim your ROC.

The only complicated part is that you need three meters: generation, import and export meter. npower juice

EDF Energy- Green Tariff

0800 096 9000 – www.edfenergy.com

EDF Energy offers two options for selling excess electricity back to the grid.

  • Non-metered option: A flat rate of £10 per kW of generator per annum.
  • If an export meter can be installed: 7.64p per unit of electricity exported to the national grid. The initial meter installation may cost up to £250 plus VAT. Contact EDF for more details.

THE EASY OPTION

If your generating kit is designed to supplement (rather than exceed) your home energy use, then you’re probably better off going for the easier options offered by Good Energy and Ecotricity. The deal is you get a lower price per unit of electricity generated (whether it’s used on site or exported).  They don’t mind whether you use the electricity yourself, or whether it spills into the local grid. The good thing is that you don’t need to buy an export meter, but you do lose your right to claim your ROCs and they get to cash them in on your behalf.

Ecotricity

0800 032 6100 –www.ecotricity.co.uk

Ecotricity offer 9p for every unit of electricity you generate , whether you use it or not. However, you lose your rights to apply for ROCs. You need to inform your generation meter reading  to Ecotricity annually which is then used to credit your bill for the electricity you generate.

The Generation meter reading needs to be supplied to Ecotricity annually which is then used to credit your bill for the electricity you generate.

WHAT IF YOU HAVE A LARGE PV SYSTEM?

Scottish and Southern Energy   

01738 456000 – www.scottish-southern.co.uk

A recently announced scheme, but only for Solar PV systems, offers a very attractive rate for exported power from your system and may therefore be of interest for larger PV customers.

SSE will pay 18p per kWh for all exported power from your system and will install an import/export meter to monitor the power being exported. SSE will do all the paperwork required for the ROCs, but this price includes them taking the ROC revenue.

For smaller PV customers, using most of the power within the property, this may not be the most appropriate scheme.
More details may be found: ONLINE HERE

For more details on the benefits of commercial batteries.

Silhoutte of electric posts during the sunsets, representing the sale of electricity back to the grid

Steps to Set Up and Start Selling Electricity Back to the Grid

  • Evaluate Your Renewable Energy Setup: Assess the capacity and efficiency of your solar or other renewable systems to ensure they produce enough excess energy for export.
  • Obtain Necessary Certifications and Approvals: Ensure your system meets MCS standards and installs the appropriate metering (e.g., a smart metre).
  • Select the Right Energy Supplier: Research SEG providers and alternative platforms, comparing rates and conditions to maximise your returns.
  • Register Your System: Complete the necessary registration with your chosen supplier or platform to start earning from exported electricity.

Financial Benefits and Considerations

Exporting electricity can be profitable, especially for businesses with large-scale solar PV installations. The potential earnings depend on system size, location, and energy consumption patterns. According to a 2023 report, businesses in the UK with large solar PV systems can earn approximately £3,000-£5,000 per year by selling excess electricity, depending on their SEG rate and overall efficiency. To ensure maximum profitability, it’s essential to calculate the return on investment (ROI) accurately, considering maintenance and optimization costs.

 

Maximise Your Solar Investment: Start Selling Electricity Back to the Grid Today

Selling electricity back to the grid offers a practical and profitable solution for maximising the use of renewable energy systems. With various schemes and technologies available, understanding the options can help you make informed decisions and enhance your returns. Whether through the SEG or alternative methods like peer-to-peer trading, the opportunities are vast for those willing to invest in and optimise their renewable systems.

Try our Solar Panel Calculator to see how much you could save and earn by selling electricity back to the grid. Get a customised estimate tailored to your business setup! Visit our Renewable Energy Services today to explore how we can help you install and optimise your solar energy system for maximum returns.