Can a business sell solar electricity back to the grid?
Yes — UK businesses can sell surplus solar electricity to the grid under the Smart Export Guarantee (SEG). Every licensed electricity supplier over 150,000 customers must offer an SEG export tariff. In 2026, tariffs typically pay 5p–15p per kWh exported. Larger sites (500 kWp+) can also enter Power Purchase Agreements or flexibility markets for higher returns.
Last updated 26 July 2026.
Key facts at a glance
| Scheme name | Smart Export Guarantee (SEG) |
|---|---|
| Regulated by | Ofgem |
| Typical SEG tariff (2026) | 5p–15p/kWh exported |
| Best SEG tariffs | Octopus Outgoing Fixed, E.ON Next Export |
| Contract length | Usually 12 months, some multi-year |
| Meter required | Half-hourly export MPAN |
Self-consume first, export second
Every kWh you self-consume avoids buying at ~26p; every kWh you export earns ~5–8p on average. Well-designed commercial systems target 65–80% self-consumption and treat SEG as a secondary revenue line — not the reason to install.
Alternatives to SEG for large sites
Above 500 kWp installed, a corporate PPA — selling directly to a nearby offtaker or via a sleeved supplier — usually beats SEG. Flexibility markets (Demand Flexibility Service, Balancing Mechanism) pay premium rates for short-notice export at grid stress events.
Related reading
FAQ
How much can I earn from SEG?
A 100 kWp system exporting 30% of its output earns £1,500–£4,500 per year on typical SEG tariffs — modest versus £15,000+ in self-consumption savings.
Do I need a special meter to sell back to the grid?
Yes — a smart or half-hourly export meter (MPAN) that records exported units in half-hour blocks. Your supplier or DNO installs it as part of commissioning.
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