☀️The Smart Export Guarantee (SEG) replaced the Feed-in Tariff scheme

💷 Your export income could be worth £100s each year

⏰ Most SEG tariff applications take up to 28 days to be approved

In January 2020, the UK government introduced a new scheme called the Smart Export Guarantee, designed to financially reward households for exporting their surplus clean electricity to the national grid.

For homes with solar photovoltaic (PV) panels, export tariffs like the SEG are a great way to bolster your energy bill savings. In this article, we'll explore how the SEG works, the benefits for solar PV system owners, and how it's shaping greener living in the UK.

If you’re thinking of making the switch to solar, you can find out how much a solar & battery system could save you by answering a few quick questions below.

What is the Smart Export Guarantee?

The SEG is a UK government initiative that supports renewable energy generation by providing households with a financial reward for their surplus electricity. 

This arrangement covers more than just solar - it also includes wind, hydroelectric, anaerobic digestion, and micro-combined heat and power (CHP) technologies.

The SEG is all about incentivizing renewable energy production and consequently making households rely less on the national grid. 

How does the Smart Export Guarantee work?

Under the SEG, energy providers with over 150,000 customers (officially called SEG licensees) must offer a tariff that pays households and small businesses for any renewably-sourced electricity that they export to the grid. 

SEG licensees are free to set the rates for these tariffs and they can be fixed or variable, but your chosen SEG tariff provider doesn't have to be the same as your primary energy provider. However, most energy providers typically offer their best export tariffs to customers. 

It’s also important to note that the SEG isn’t a government subsidy and the payments aren’t guaranteed. The rates and availability of tariffs will depend on the supplier and current market conditions.

🤔 Thinking of going solar? Here's why a larger system makes sense ⬇️

How much money can you earn with the Smart Export Guarantee?

Your potential SEG earnings can vary depending on the tariff and supplier. Typically, SEG licensees pay out anywhere between 2-21p for every kilowatt-hour (kWh) of exported electricity.

With that being said, some of the most lucrative export tariffs on offer today aren’t actually connected to the SEG, and they often don’t require you to generate your electricity with a renewable source. In reality, all you need in order to achieve flexible import and export is a storage battery. 

For instance, the Intelligent Octopus Flux tariff (set up by Octopus Energy) allows customers to import electricity when it's cheap and export electricity when prices are higher. This differs from their SEG tariff - called Outgoing Octopus - which provides a fixed rate of 15p per kWh.

A typical UK household with a solar & battery system (using 430W panels and a 5.2kWh battery) that’s signed up to the Intelligent Octopus Flux tariff could earn around £350 each year. 

You can receive SEG income regardless of whether you've paid the upfront cost of solar panels or if you've opted for a solar subscription. 

What is currently the best Smart Export Guarantee rate?

The best solar export tariff for a household depends on a few factors, but one of the top choices right now is Intelligent Octopus Flux, provided by Octopus Energy.

This offers changing rates that reflect the wholesale market, and selling excess electricity at peak times could earn you up to 29.4p per kWh (on average).

This tariff is only for customers who also buy their electricity from Octopus Energy, however it's usually fairly easy to switch. 

Sunsave has a partnership with Octopus Energy, which means that if you install a Sunsave Plus solar & battery system (at no upfront cost), we’ll work to get you market-leading rates for your excess energy as quickly as possible. If you'd like to sign up for Intelligent Octopus Flux, click here. 

However, there are alternative situations where other export tariffs might be a better choice.

Providing your system is smaller than 5kWp, you might be better off with Cosy Octopus for your imports and Octopus Outgoing for your exports. However, if your system is larger than 5.2kWp, you will probably still be better off with Intelligent Octopus Flux. 

If you have solar panels and an electric vehicle

Assuming your annual electricity usage is greater than 5,000kWh (including charging your EV), you should probably choose Intelligent Octopus Go for your imports and Octopus Outgoing for your exports. However, if your usage falls below 5,000kWh, Intelligent Octopus Flux will most likely be your best option. 

If you have solar panels, a heat pump, and an electric vehicle

Again, it all depends on electricity usage. If your annual consumption is more than 6,000kWh (including powering your heat pump), it's usually better to be on Intelligent Octopus Go plus Octopus Outgoing, but if your consumption is lower than 6,000kWh then Intelligent Octopus Flux is typically a better choice. 

Of course, the best export tariff for your system could change - the above situations are just rough recommendations. If you choose to install a Sunsave solar & battery system, we will help to select the right export tariff for you. 

The UK's first solar subscription

Are Smart Export Guarantee rates increasing?

Our analysis of the Ofgem SEG reports from 2020 to 2023 shows that the average solar export tariff has increased since the SEG launched.

It started at an average of 3.15p/kWh in 2020, jumping to 4.52p in 2021, and then up to 6.78p in 2022. Based on the solar export tariffs available last year, the average rate for 2023 was 9.78p/kWh - that's more than a 200% increase in three years.

The pros and cons of the Smart Export Guarantee

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    <th style="padding: 12px;">Pros</th>
    <th style="padding: 12px;">Cons</th>
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    <td style="padding: 12px;">Incentivises renewable energy generation and encourages long-term investment in renewable energy infrastructure</td>
    <td style="padding: 12px;">Pays less than the Feed-in Tariff (FiT) scheme</td>
  </tr>
  <tr style="border-bottom: 1px rgba(0,0,0,0.1) solid;">
    <td style="padding: 12px;">Covers a wide range of renewable sources, including solar, wind, hydro, and more</td>
    <td style="padding: 12px;">Payments can vary depending on the energy supplier and market rates</td>
  </tr>
  <tr style="border-bottom: 1px rgba(0,0,0,0.1) solid;">
    <td style="padding: 12px;">Allows you to choose your own SEG tariff provider, which doesn't have to be your energy supplier</td>
    <td style="padding: 12px;">Dependent on production, i.e. earnings are directly linked to the amount of excess electricity produced</td>
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    <td style="padding: 12px;">Encourages energy independence</td>
    <td style="padding: 12px;"> </td>
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  <tr style="border-bottom: 1px rgba(0,0,0,0.1) solid;">
    <td style="padding: 12px;">Provides households with an additional source of income</td>
    <td style="padding: 12px;"> </td>
  </tr>
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    <td style="padding: 12px;">Helps stabilise the energy grid by providing additional electricity during peak times</td>
    <td style="padding: 12px;"> </td>
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If you’re wondering how much a solar & battery system could save you, answer a few quick questions below and we’ll provide you with an estimate. 

Is it worth signing up for the Smart Export Guarantee?

The SEG is definitely worth joining - it's free to sign up and you can make some extra cash.

It's a no-brainer for those generating renewable energy, as it provides financial compensation for any surplus electricity exported to the grid, effectively turning your environmental contribution into an economic benefit.

What are the requirements for the Smart Export Guarantee?

To be eligible for the SEG, your system must meet the following requirements:

The electricity generated needs to come from renewable sources, such as solar panels, wind turbines, or hydroelectricity.

The maximum capacity of the system must not exceed 5 megawatts (MW), or 50 kilowatts (kW) for micro CHP systems.

The system must have a registered smart meter capable of measuring exported electricity.

The system must have a valid Flexi-Orb or Microgeneration Certification Scheme (MCS) certificate.

Your property must have a valid Energy Performance Certificate (EPC) rating of D or above.

Once these conditions are met, you can apply for a special export tariff with an SEG licensee, who will then pay you for any excess electricity you generate and export back to the grid.

Remember, individual energy suppliers set the rates for this tariff, so they can vary. The payments are typically made quarterly and are based on the amount of exported electricity, as recorded by your smart meter. To learn more, check out our guide to how smart meters work with solar panels. 

If you don't have a smart meter and want to get involved in the SEG scheme, you'll need to install one. 

One of the scheme’s key requirements is your household’s ability to provide precise export readings every 30 minutes, so speak to your current energy supplier to book a smart meter installation.

How do you sign up for the Smart Export Guarantee?

First, you need to contact an SEG licensee that offers export tariffs in your area and fill out their SEG application form. 

The SEG licensee will ask you for documents to ensure that your solar PV system meets the SEG requirements for eligibility (see above) - this includes having a smart meter installed and a valid Flexi-Orb or MCS certificate.

Once you’ve submitted your application, the licensee will apply to the Distribution Network Operator (DNO) for a unique export Meter Point Administration Number (MPAN), if your supply doesn’t already have one.

After the licensee approves everything, you’re all set - you can start exporting any excess electricity to the grid and get paid for it.

Signing up for the SEG can take around 28 days, depending on the specific SEG licensee.

It typically involves a few steps, including making sure you have all the right documents for processing and any necessary meter installations or inspections. It's a good idea to check with your SEG licensee for specific timeframes.

Is it easy to switch Smart Export Guarantee tariffs?

Switching SEG tariffs can be relatively straightforward, but it depends on the terms set by your current and prospective energy suppliers.

You'll need to check the terms of your existing SEG contract for any conditions or penalties associated with early termination. If there are no limitations (or you’ve passed the minimum contract term), you can easily switch to an SEG licensee with a more attractive tariff.

Just like switching energy suppliers, it involves contacting the new supplier and completing their sign-up process.

Are Smart Export Guarantee rates expected to increase?

We can't predict the future, but it's possible that SEG rates might continue to rise like they have done since the scheme began. As the value of clean electricity grows because of rising energy costs, it wouldn't be surprising if SEG rates went up too.

However, these rates are subject to various market and government policy factors, so while an increase is possible, it's not guaranteed.

Smart Export Guarantee: FAQs

Who pays the highest Smart Export Guarantee rate?

How much do I get for selling electricity back to the UK grid in 2023?

The Smart Export Guarantee: explained [UK, 2024]

What's in this guide?

The Smart Export Guarantee: explained

📉 Low output is the most common problem

🔋 Be prepared to replace your battery and inverter after 10-12 years

➕ Sunsave Plus provides you with insurance and free replacement parts

🐦 Birds can sometimes nest under solar panels

🛠️ Choosing a reputable installer means you dodge problems later on

Like any investment, solar panels can come with their own set of potential pitfalls. In this article, we'll be discussing six of the most common problems that solar panel owners face, as well as handy ways to deal with (or prevent) them.

To find out how much a solar & battery system could save you on your energy bills, answer a few quick questions below and we’ll provide you with an estimate. 

What are the 6 most common solar panel problems?

Despite their many benefits, solar panels can face several issues that affect their performance and longevity - however there are steps you can take to mitigate this. 

Here are six common issues that solar panel owners could run into.

The inverter is known as the brains of a solar panel system, as it serves as the central control unit. Its main job is converting the direct current (DC) electricity produced by the solar panels into alternating current (AC) electricity, but it’s also in charge of exporting any excess electricity to the grid.

Despite this critical role, inverters are often the weakest link in the system, prone to failure after about 10-12 years of operation. This makes monitoring their health crucial for maintaining the efficiency and reliability of your solar power setup.

In the chart below you'll see that an inverter’s probability of failure sharply increases after the 12-year mark. 

Keeping an eye on your inverter's performance can help you catch issues early and ensure uninterrupted energy production. And when your inverter stops working, it’s a good idea to get a replacement quickly to keep your solar panel system working continuously. 

However, monitoring your system can be time-consuming and you won’t always know what signs to look for, whilst having to buy a new inverter is a major inconvenience and can be a lot of hassle. 

If you opt for Sunsave Plus (the UK’s first solar subscription), your solar & battery system will be protected by the Sunsave Guarantee, which includes 24/7 monitoring & maintenance support, downtime cover, and free out-of-warranty replacements for your battery and inverter once they need replacing. It basically means you won’t need to worry about inverter problems for the full 20 years of your subscription. 

Your system will also be insured by Aviva against damage, fire and theft. 

Solar panel output refers to the amount of electricity generated by a solar panel system over a period of time, usually measured in kilowatt-hours (kWh). For a typical 4.3kWp (kilowatt-peak) system, the average UK output is around 3,650kWh per year, although this can be much higher depending on various factors (e.g. the weather). 

It’s not unusual for a solar panel system to see gradually reduced output over time. Panel degradation - a natural and unavoidable process - is often the culprit and is factored into the system's performance warranty. 

However, sudden decreases in electricity production could be a result of issues like poor installation, shading, or damage to panels.

For more post-installation tips, read our guide on what to do once you're a solar panel system owner.

Going with a reputable solar installer like Sunsave is a must to ensure you get the most out of your solar panel installation. An experienced installer will design your system to maximise output and minimise issues like shading, either through strategic placement or by employing optimisers or microinverters.

It’s very important you always choose a solar panel installer accredited by Flexi-Orb or MCS, and that you ask any prospective installer these questions. 

Also, with Sunsave Plus you get the Sunsave Guarantee, which means your system’s output is monitored 24/7, and if anything goes wrong we will attempt to fix it remotely or in person. The Sunsave Guarantee also offers downtime cover, so if your system isn’t working for more than two weeks we will start to credit your payments. 

While solar panels are robust, they can still sometimes be susceptible to damage from things like falling branches or debris that’s blown during a storm. In the worst cases, high winds can dislodge panels or even blow them off roofs. 

This damage can obviously have a very negative impact on both your system’s output and appearance.

A trustworthy installer will make sure your solar panel installation is secure, reducing the risk of damage‌. 

However, it’s also sensible to make sure your system is protected by insurance. Your home insurance policy is unlikely to cover panel damage from general ‘wear and tear’ and every policy is different, so you’ll need to double-check with your provider to find out exactly what’s included.

Every Sunsave Plus system is insured by Aviva. This policy covers damages caused by branches, hail, debris, birds, theft, and fire, providing comprehensive protection for your solar panels.

If you’re wondering how much a solar & battery system could save you, answer a few quick questions below and we'll provide you with an estimate.

Birds are drawn to nesting under solar panels because of the sheltered space created by the gap between the panels and the roof. This gap provides protection from predators and the elements, making it an ideal nesting spot. 

However, their presence can lead to several issues. Bird droppings accumulate, causing an unsightly mess, as well as partial shading on the panels and potential hygiene concerns. 

Nesting materials can also block airflow around the panels, affecting their efficiency and causing a potential fire hazard. And curious birds pecking at wires can damage the electrical components. 

Preventative measures like bird proofing will safeguard your solar panel investment from unwanted visitors – whether they’re birds, bats or squirrels. 

Bird deterrents like wire mesh or spikes are crucial to prevent nesting beneath solar panels. These measures safeguard against bird-related issues, preserving panel efficiency and integrity. 

What’s more, the insurance policy included in the Sunsave Guarantee covers your panels for any damage caused by birds, so you won’t need to worry. 

Over time, solar panels can succumb to ‘soiling’, which refers to the accumulation of dirt and dust. This buildup can lower daylight absorption and therefore reduce panel efficiency. 

While soiling is more prevalent in drier, dustier regions like the Middle East, it can still happen on solar panels in the UK if they’re in a particularly dusty area. 

Pollen, sap and bird droppings can also build up on solar panels here, again depending on their location.

Solar panels are manufactured with a hydrophobic coating, meaning any rainwater just runs straight off the panels and washes away dirt and debris. In rainy countries like the UK, this natural cleaning happens frequently, but you might still have to manually clean your solar panels occasionally.

Consider using a soft, extendable brush from ground level, or paying for a professional solar panel cleaning service. We definitely wouldn’t recommend climbing onto the roof to do it yourself, as this can be dangerous.

This point isn’t strictly solar panel-related, but batteries play a crucial role in storing electricity for later use in solar panel systems, and according to Flexi-Orb, 73% of solar panel systems in the UK include a battery.

Storage batteries typically last for around 10-12 years before they start performing poorly and need to be replaced. 

One ‘solution’ is to buy yourself another battery once your first one stops working, but this is pricey and a lot of hassle.

You can dodge this hassle with Sunsave Plus, which includes a free replacement battery once your current one reaches the end of its useful life (i.e. when its performance drops below 70% of its original capacity).

Summary

While having solar panels can benefit both the environment and your wallet, it's crucial to be aware of potential problems that may arise. But with proper maintenance and care, you can continue to enjoy the benefits of renewable energy for years to come.

Thinking of switching to solar? To find out how much a solar & battery system could save you on your energy bills, answer a few quick questions below and we'll generate an estimate.

Problems with solar panels: FAQs

What is the biggest issue with solar panels?

What are the cons of using solar panels?

Do solar panels have any negative effects?

Wondering whether to switch to solar? Learn the potential pitfalls that face solar panel owners and what the solution is to all of them

6 problems to watch out for if you have solar panels [UK, 2024]

6 problems to watch out for if you have solar panels

⚖️ The risks of buying used solar panels almost always outweigh the benefits

❌ Second-hand panels are often sold on because they are defective or unreliable

🌞 There are many better alternatives, such as solar subscriptions

The temptation to buy second-hand solar panels is real, especially given their attractive price tags. But you should think twice before committing - while the initial savings may seem significant, they often come at a hidden cost.

Keep reading to find out why used panels aren't a great idea for most homes and to learn what better cost-saving options are available.

To find out how much a brand new solar & battery system could save you, answer a few quick questions below and we’ll provide an estimate. 

Should you buy used solar panels?

Used solar panels might seem like a smart financial move for a green energy solution, but they can come with many issues, including defects that lead to significant maintenance issues.

For instance, second-hand solar panels can suffer from degraded efficiency, meaning you won’t save as much on your energy bills as you might expect. Plus, the likelihood of frequent repairs can quickly eat into any initial financial benefits you might have otherwise gained.

Investing in new solar panels guarantees better performance, a longer lifespan and, ultimately, more savings.

Why are used solar panels risky?

While the allure of used solar panels lies in their upfront affordability, there are several significant risks that mean you probably won’t get good value for money. These are:

One of the most significant risks of buying used solar panels is the lack of installation support.

When you search for used solar panels online, you’ll typically find listings on e-commerce platforms like eBay and Alibaba/AliExpress, not on professional installer websites. This means you’re purchasing just the panels, without the expertise of a certified installer.

Installing the panels yourself poses huge safety concerns if you’re not an MCS or Flexi-Orb certified installer, and so we do not recommend it. An improper installation will also cause performance issues, which will minimise how much you can actually cut your energy bills by.

And if you do want to sidestep the process of installing the system yourself, it’s tricky to find a reputable installer that will be willing to work with second-hand hardware.

If you’re not an MCS or Flexi-Orb certified installer, a solar panel system you've installed yourself will not be properly certified.

And having one of these certifications is a requirement for all solar export tariffs, so opting for used panels means forfeiting a substantial financial advantage of switching to solar.

To put it into perspective, a typical solar & battery system in the UK could earn around £350 per year, just from export income. This estimate is based on a property using 3,500kWh of electricity each year, with a 4.4 kilowatt-peak (kWp) system, a 5.2 kilowatt-hour (kWh) battery, experiencing typical UK solar irradiance, and signed up to the Intelligent Octopus Flux export tariff. 

This example property is actually able to reduce its electricity bills by 103%, meaning across a year it actually earns more than it spends.

Used solar panels will have already experienced natural degradation from previous use, so their efficiency will be diminished compared to that of brand new panels. 

The average solar panel loses between 1% and 3% of its efficiency in its first year, then around 0.5% with each subsequent year. That means that, after 25 years, the average system will produce 14% less energy than it did on its first day. 

A solar panel’s efficiency has a direct impact on its electricity output, so homeowners with second-hand panels will consequently see smaller energy bill savings than those who invest in brand-new systems.

Typical solar panel degradation over 30 years

A brand new solar & battery system has a 15% chance of requiring maintenance every year across a 20-year period, according to industry experts. 

But in the case of a second-hand solar system, regular maintenance problems will become much more frequent.

Many solar panels are sold on for a reason. You could be buying hardware with slight (or major) defects that the seller doesn’t want you to know about, and you’ll only notice these defects once the system is up on your roof. 

It’s important to note that used panels will rarely be covered by the manufacturer’s warranty, leaving you without recourse if something goes wrong.

This is a good time to mention that Sunsave Plus, the UK’s first solar subscription, also comes with the Sunsave Guarantee. This means that every system is protected for 20 years with 24/7 monitoring and maintenance, free replacement parts, and downtime cover. Your system will also be insured by Aviva against damage, fire and theft. 

Sign up for Sunsave Plus

If you're worried about the visual impact of solar panels on your property, opting for used ones can be a risky decision. 

You could have a system that doesn't have a consistent surface or colour, and any flaws or discrepancies are likely to be noticeable to people on ground level. If you take pride in your home's appearance, this patchy and mismatched look is a big no-no.

Opting for new panels guarantees a seamless and aesthetically pleasing setup, offering the practical advantages of solar power while enhancing the attractiveness of your property.

Solar panels are intended to be a long-term investment, offering energy bill savings for decades. Monocrystalline solar panels, for example, typically come with a 25-year or 30-year warranty and can potentially last up to 40 years.

In comparison, the lifespan of used solar panels can be much shorter, as you won’t know how long they’ve previously spent up on somebody else’s roof. This means you could be having to replace your used solar panels in just a decade or two, and that whole process will probably end up costing you more than if you just opted for a new system in the first place.

Sensible ways to reduce the cost of solar panels

As we've just seen, the associated risks of second-hand solar panels far outweigh the initial savings. Fortunately, there are more reasonable ways to reduce the high cost of solar installations without resorting to potentially defective, used panels.

Here are some practical strategies to make solar more affordable.

Sunsave Plus is the UK’s first solar subscription, and it means you can switch to solar with no upfront cost - instead, you pay a fixed monthly fee for 20 years.

In many cases with Plus, it’s possible for your monthly energy bill savings to exceed your monthly payments to Sunsave, meaning you actually have more money in your pocket each year. For example, Tim saves around £400 per year with Sunsave Plus. 

Your system is also backed by the Sunsave Guarantee, ensuring reliable performance for the full subscription term. It includes 24/7 monitoring and maintenance, free replacement parts, insurance, and downtime cover. 

Government grants and schemes can significantly reduce the cost of a solar panel installation, offering financial help to those who meet certain eligibility criteria. These grants come in various forms, helping to offset initial expenses and make solar energy more accessible.

However, the eligibility criteria for these grants can be quite strict, often requiring specific income levels, property types, or geographic locations.

For more detailed information, visit our guide on the best solar panel grants and funding options.

The Solar Together scheme is a group-buying initiative that aims to lower the cost of solar panel installations by pooling demand in local communities.

But while it can offer significant savings, it also comes with risks such as a limited choice of installers, potential delays, and a variable quality of installations. Also, the bulk-buying approach might not always cater to individual needs, meaning a potential compromise on the best fit for your property.

For more details, check out our guide to the Solar Together scheme.

While used solar panels may look like an economical choice at first, the risks involved often overshadow the advantages. Exploring alternatives like solar subscriptions, grants, and group-buying schemes can offer more reliable cost-saving options.

If you're interested in learning more about how much you could save with a solar & battery system, answer a few quick questions below and we’ll provide an estimate.

Used solar panels: FAQs

Is it safe to buy used solar panels?

Can I get free solar panels in the UK?

What happens to solar panels that are no longer usable?

We run through the key disadvantages of getting used solar panels instead of brand new ones, including reduced output and maintenance problems.

Used solar panels: are they a good idea? [UK, 2024]

Used solar panels: are they a good idea?

Batteries without solar panels: at a glance

🔋 With a battery, you can use an Economy 7 tariff to import cheap electricity

💷 A battery costs £2,000-£3,000 more without solar panels

👎 You’re unlikely to ever break even on a standalone battery

📈 You’ll still be vulnerable to energy price inflation

☀️ As part of a solar & battery system, a battery is extremely profitable

Despite solar panels and storage batteries being a very common and productive pairing for households in the UK, it is technically possible to have a storage battery without solar panels.

In this article, we’ll explain how it works to have a standalone battery, how much it costs, and why it makes much more financial sense to get a battery with solar panels.

At Sunsave, we don't install standalone batteries for this very reason. To find out how much a solar & battery system could save you in the long run, answer a few quick questions below and we'll generate an estimate.

Get a quote for a solar & battery system

Can you have a storage battery without solar panels?

Understand the key limitations of battery storage without solar panels, and why it’s better to include solar.

Melody Abeni

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