UK households with solar panels being paid £250 and 'don't need to do anything'

There are now over 1.5 million homes with solar panels in the UK
-Credit: (Image: Reach Publishing Services Limited)


UK households with solar panels will be paid £250 and "don't need to do anything". There are now over 1.5 million homes with solar panels in the UK - meaning homeowners nationwide could be making a grand total of £367.5m by selling their excess energy back to the grid.

But not every home with panels is selling energy back to the grid, meaning many homeowners are missing out. To help demystify the process, the experts at Independent Advisor Solar Panels have answered some of the most common questions about selling energy back to the national grid, from how it works to how much money you can make.

Households that generate their own energy from solar panels or other renewable sources can sell any excess power back to the grid through the Smart Export Guarantee (SEG) scheme. The process isn’t automatic though, meaning anyone looking to sell their extra energy back to a supplier needs to sign up for a SEG tariff.

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The tariff and deal you sign up for determines how much you can make, as there are no set SEG rates. Tariffs can be fixed or variable. A fixed tariff pays a rate based on kilowatt hours (kWh). These payments vary among suppliers, from around 2p to 35p per kWh. Variable rates change based on market demand.

Based on estimates that the typical household in England, Scotland, and Wales uses 2,700 kWh of electricity2, a typical 4kW system will typically generate 3,400 kWh a year3 and 35p per kWh, the average household could make £245 a year selling energy back to the grid.

Once your supplier receives readings from your export meter, you’ll begin to receive payments. Your supplier will determine how often these are. SEG payments are usually sent via bank transfer monthly or quarterly, but each supplier has different terms, so check your contract for the exact terms.

For homeowners considering the switch to solar energy but concerned about the upfront costs, a range of finance options are available to spread the cost of installation.

Solar panel systems can be a significant investment, with prices often ranging between £5,000 and £8,000 for a standard installation.

However, many providers offer financing plans, making it easier for households to afford solar panels without needing to pay the full amount upfront.

James Elston, renewable energy specialist at Green Central, added: "With the increasing demand for renewable energy solutions, we're seeing a rise in accessible finance options.

"Homeowners can now install solar panels with flexible payment terms, allowing them to benefit from reduced energy bills and SEG payments while paying off the system over time."

Katharine Allison, energy-saving expert at Independent Advisor Solar Panels, commented: “Installing solar panels on your home, or producing your own energy by any other means, such as wind power, can have many benefits, from helping the environment to reducing your energy bills. However, many homeowners may not be aware your solar panels can actually earn you money as well by selling any energy you don’t need back to the national grid.

“The process for this has changed in recent years as renewable technologies have become more common, meaning that many people may not even realise they are eligible for the scheme and could be missing out on hundreds of pounds every year.”