Installing a solar PV system is becoming increasingly popular in the country due to an ever high electricity bills and an all-time high demand for renewable energy sources. Switching to a solar energy solution is a cost-effective way to reduce your energy bills, which is one of the most important benefits of solar panels. Solar panels work by capturing sunlight and converting it into electricity. The produced electricity can be used immediately or it can be stored in batteries for later use.
There are numerous benefits to switching to an eco-friendly way of generating electricity. However, there are also some cons of solar energy, which we will discuss in the later part of this blog. For now, let’s explore the advantages of solar energy for your homes. But before delving into the benefits of a solar energy system, let’s understand how they are installed and how do they work.
How are Solar Panels installed?
How are Solar Panels installed in UK?
The installation process can be divided into 5 steps, starting with preparation or assessing roof suitability and obtaining permits if required for installation.
Then, the mounting rails are fixed on the roof using special brackets that firmly hold the panels.
After the installation of mounting rails, solar panels are installed on them, and it is ensured that all nuts and bolts are properly tightened.
The next step is to install electrical wiring and then the solar inverter to convert the solar panels’ produced DC current into usable AC current.
If you want backup, bond inverters with a battery storage system, and finally, connect the inverter unit with the consumer unit.
Advantages of Solar Energy for your Home
Lower Electricity Bill
Once your solar PV system is installed, it will start saving on your energy bill from the very first day. Solar panels directly generate electricity as long as the sun shines, powering your home. The percentage you can save on your energy bills depends on the size of the system you installed, but one can easily lower this ratio by up to 50%.
Low Maintenance
One of the most important benefits of solar panels is their very low maintenance costs; all they need is to be kept clean from dirt and bird droppings, which could be done automatically if your area receives enough rainfall. However, it is recommended to give them a proper wiping every 6 months so that they can operate at their optimal level.
Independence from the National Grid
Having solar panels system on your roof make you less dependent on national grid for electric supply. If there is something wrong with the grid and the other area in your surroundings is facing power outages, you will still have the source of generating free electricity while free from fossil fuels.
Increased Property Value
If you have installed solar system at your home roof, your home value could be increased by up to 4%. Solar panels not only reduce your energy expenses, but at the same time increase the value of your home. The houses with renewable energy sources are very much in demand in UK and you could probably get the higher price of your home.
Smart Export Energy / SEG Tariffs
Through SEG tariffs, you can sell unused electricity back to the grid and get paid. This is another way to further reduce your monthly energy bills. Depending on your solar panel system and the extra electricity they produce, you can save up to £100 to £200 every year.
Solar Panels and Battery storage system
Pairing your solar panels with batteries can double your savings. Because with battery storage system you can save the extra produce electricity for later use either at night or during the power outage. And using the solar energy even when there is no sunshine will make your energy independent and reduce your energy bills too.
How do Solar Panels work with your electric bill uk
How solar power works
When you use solar energy, it simply reduces your electricity bill, but that does not appear on your energy bills. However, if you get the export tariff through SEG, you will see the payments for your exported electricity on your bill. You don’t need to inform your energy supplier that you have solar panels on your rooftop unless you use the Smart Export Guarantee tariff to sell the extra produced energy back to the grid.
Pros and Cons of Solar Energy
Advantages of Solar Energy
Disadvantages of Solar Energy
Reduce Your Carbon Footprints
High Upfront Cost
Reduce Energy Bills
Too much dependence on sunlight
Less Dependence on Grid stations
Difficult to relocate solar panels
Long term savings
recycling options may be limited
Low Maintenance Costs
Environment Friendly
Pros and Cons of Solar Energy
We, at MAK Energy, commit to providing our clients with high-quality solar energy systems and excellent customer service. However, we can help you design, install, and maintain a solar energy system that meets your specific needs and goals. And that delivers long-lasting and reliable performance.
If you are interested in learning more about the benefits of solar energy and how you can switch to clean and renewable energy sources,. Please contact us today to schedule a consultation with one of our solar experts.
You aspire to have your own source of energy that ultimately saves you money and gives you freedom from power outages. Well, a Solar PV system is the answer for you. However, there’s more to it than just energy independence and saving money. That is the Smart Export Guarantee (SEG) program, which allows you to sell excess electricity back to the grid and earn even more.
But the question is, how much can you get, what are the best SEG tariffs and how does it work? and What are the best SEG rates? If you are planning to sell excess electricity back to the national grid, this guide will help you understand everything you need to know about it.
You may still have been deprived of the potential benefits of a solar power system, but no worries, MAK Energy is always here to assist its customers. In our long journey of solar installation, we have helped customers transition to an environmentally friendly and more cost-effective source of electricity. If you are looking for a reliable and yet affordable energy solution for your home or business, you will find MAK Energy as your helping hand.
key Notes
✔ You are entitled to compensation from major energy providers for surplus renewable energy you generate.
✔ Presently, the most favorable rate under the Smart Export Guarantee is 29.3 pence per kWh.
✔ On average, households can expect to earn around £159 annually through this program.
What is the Smart Export Guarantee?
The Smart Export Guarantee is a government-backed initiative that allows users of solar panels to sell any excess electricity back to the national grid and get paid for it. The program was started in 2010 under the name Feed-in Tariff, which has now been replaced with SEG. The purpose behind introducing the SEG tariff in the UK is to encourage people to switch to renewable energy and go green.
The amount you receive for exported energy through SEG program depends on the supplier’s rate, as each energy supplier has its own SEG rates for exported electricity. We will explore most of the available best SEG tariffs in the UK.
One important thing to keep in mind is that the rate you pay for electricity usage will not necessarily be matched with the rate you receive for selling back to the grid through the Smart Export Guarantee program.
Octopus Energy offers different types of Smart Export Energy rates to its customers: fixed and flexible or agile. The fixed rate is 15p per kWh, while the flexible tariff is measured on a half-hourly rate and based on day-ahead wholesale SEG rates. You may be curious to know which one is best suited for you: fixed or agile.
Well, the fixed Smart Export Guarantee rates will give you a fixed rate regardless of any changes that may occur during the fixed term. On the other hand, the agile tariff allows you to sell your excess generated electricity at a time that is most valuable to you.
What Is Required to Receive the Tariff?
You must have an active supply and export account with Octopus. Customers with export-only accounts will receive 4.1p per kWh for their exported electricity.
A SMETS2 smart meter (or SecureTM SMETS1) must be installed, and it should be capable of sending half-hourly export meter readings.
You should not be receiving deemed export payments from a feed-in tariff (FIT).
Any installed solar PV systems must hold MCS/Flexi-Orb certification.
Scottish Power offers two types of SEG tariffs to their customers, each with different Smart Export Guarantee rates: SmartGen and SmartGen+. Customers are compensated based on the units they export to the Scottish Power company. The SmartGen+ tariff provides a rate of 15p per kWh, while the SmartGen tariff offers a rate of approximately 12p per kWh.
What Is Required to Receive the Tariff?
A Smart or AMR meter capable of obtaining half-hourly readings must be in place, and you must grant consent to Scottish Power for accessing these readings.
Your export meter should be assigned an Export Meter Point Administration Number (MPAN).
You should not be receiving deemed export payments through a feed-in tariff (FiT).
Solar PV systems that have been installed must possess MCS/Flexi-Orb certification.
Your generation unit should have a capacity of up to 5MW, or up to 50kW for Micro-CHP systems.
The fix Smart Export Guarantee rates of exporting electricity back to the OVO energy is 4p /kwh regardless of your energy supplier association. But under their OVO best SEG tariff umbrella the Smart Export Guarantee rates go up to 20p if you have installed battery with your system and for on grid system the SEG rate is 15p.
The agreement will function by utilizing anticipated manual quarterly readings that you send to the supplier using OVO Energy’s convenient online form. Alternatively, if you have an ‘approved’ smart meter, you can opt for automated remote readings.
What Is Required to Receive the Tariff?
Installation of a smart meter (either SMETS1 or SMETS2) is required, capable of transmitting half-hourly export meter readings.
Your export meter must be equipped with an Export Meter Point Administration Number (MPAN).
You must not be receiving any public grants that could disqualify you from participating in SEG.
Solar PV systems that are installed need to possess MCS/Flexi-Orb certification.
Your generation unit’s capacity can be up to 5MW, or up to 50kW for micro-combined heat and power (Micro-CHP).
You should not be receiving deemed export payments from a feed-in tariff (FIT).
Shall Energy offers a slightly lower rate to its customers for feeding back the electricity generated by their solar panels. They provide their customers with a rate of 3.5p per kWh of energy exported back to the grid. To qualify for the SEG tariff, the property you own must be equipped with an export register and a SMETS compliant meter. Additionally, it is mandatory to have an MCS certificate for your property and complete a registration form.
What Is Required to Receive the Tariff?
You should not receive deemed export payments from a feed-in tariff (FIT)
Solar PV systems that are installed must hold MCS/Flexi-Orb certification
Your export meter should be assigned an Export Meter Point Administration Number (MPAN)
You are required to have a SMETS smart meter installed
With the Export and Flex tariff provided by British Gas, solar panel owners can receive 6.4p per kWh for selling back to the grid. After successfully contracting with the company, customers need to provide the initial export meter reading, which will later be automatically recorded quarterly.
Customers get paid every three months, which means they will receive payments four times a year.
The best thing to associate with British Gas is that they allow their customers to switch to other energy provider companies without any prior exit or end date notice. This provides the customer with peace of mind. You also don’t need to purchase electricity from British Gas to use this tariff; you can choose any energy supplier.
What Is Required to Receive the Tariff?
You need to have a smart meter or a meter capable of obtaining half-hourly readings
Your export meter should be assigned an Export Meter Point Administration Number (MPAN)
You must not be receiving deemed export payments through a Feed-In Tariff (FIT)
Solar PV systems that are installed must hold MCS/Flexi-Orb certification
Your generation unit should have a capacity of up to 5MW, or for micro-combined heat and power (micro-CHP) systems, a capacity of up to 50kW
British Gas SEG Tariff
Export and Earn Flex
Tariff Type
Variable
Tariff Rate
6.4p (per kWh)
Includes Battery Storage
Yes
Payment Cycle
3 Months
Exit Fee
No
Tariff Length
No Fixed End Date
MCS/Flexi-Orb Certified
Yes
What’s The Best Smart Export Guarantee Rate?
Among all the companies offering the best SEG Tariff rates, Octopus stands out as it offers you up to 24p per kWh when exporting electricity back to the grid. Even if you aren’t an Octopus customer, you still have the opportunity to export your excess electricity back to Octopus at a reasonable rate of 4.1p per kWh, which is still higher than some other energy companies.
However, the best rate available to both customers and non-customers of solar panel homeowners is offered by Scottish Power at a rate of 12p per kWh, known as the SmartGen Tariff.
When inquiring about the lower rate for non-customers from Octopus, they explained that providing the same rate to customers of other suppliers isn’t feasible due to the significant effort and cost involved in setting up an export tariff.
How Much Money Can You Earn from The Smart Export Guarantee?
The money that an average solar panel owner can earn with the SEG Tariff in the UK is £160, assuming they have a three-bedroom house and a 3.5kW solar system.
However, every house is different, so the amount one can save varies. In this table, you will gain a generic understanding of how different houses with various sizes of Solar PV systems can earn from SEG Tariff rates.
SEG Annual Income Based on Solar Panel and House Size
System Size
House Size
No of Panels
Total Estimated Annual Savings with SEG Profit
3kW
1-2 bedrooms
6-8
£550-£570
4KW
2-3 bedrooms
9-11
£800-£825
5KW
4 bedrooms
11-13
£850-£870
6KW
5+ bedrooms
14-16
£1220-£1250
SEG Annual Income Based on Solar Panel and House Size
How is SEG income Paid to You?
If you are associated with the same company that is also your supplier, in that case, you may receive a deduction in your monthly energy bills. In other cases, you will be paid through a bank transfer. The transaction depends on the rules and regulations of each energy supplier and how often they transfer your money for exporting energy back to the grid.
For instance, Scottish Energy transfers monthly, OVO every three months, while Shall Energy will pay you annually.
Is SEG Income Taxable?
If your solar array is situated on a residential property that you own or in close proximity to it, and you do not plan for your solar panels to generate a substantially larger amount of solar energy (typically defined as exceeding 20% of your home’s electricity consumption), then you might still be eligible for an exemption.
To qualify for the SEG Tariff in the UK, you must fall into one of the categories of energy generators listed below:
Solar Panels
Micro Combined heat and Power
Hydro
Wind Turbines
Anaerobic digestion
The other necessary things for SEG sign-up and qualification are as follows:
Your installation must have a maximum capacity of 5 MW. Without a combined heat and power installation, the upper limit does not exceed 50 kW.
You are required to provide your Microgeneration Certification Scheme (MCS) certificate or an equivalent document.
Ownership of an export meter is mandatory. Additionally, you will need to provide your SEG company with your export MPAN. If you’re uncertain about where to find your export MPAN, don’t hesitate to inquire with your supplier.
Can You Choose any Supplier for the SEG?
Yes! Homeowners owning solar panels can choose any energy supplier for the best SEG Tariff. You may receive minimal SEG rates, but you have the right to choose as you please. Some suppliers provide good SEG rates even to non-customers, such as Scottish British, Octopus, and E.ON. You can select the one that best suits your needs without any hurdles.
Do You Require a Smart Meter In Order To Receive SEG Payments?
It depends on the supplier’s requirements; some energy suppliers may ask you to install a smart meter before receiving the SEG tariff. In most cases, you might not be required to have a smart meter, but having one ensures accurate SEG tariff rates and eliminates the need for manual readings. There are some speculations that smart meters may become compulsory for SEG payments in the near future. Therefore, it is recommended to have one before applying for the SEG program.
Summary
The Smart Export Guarantee (SEG) Tariff presents an excellent opportunity to earn income by exporting surplus electricity back to the grid. Numerous energy suppliers participate in this program, each offering best SEG tariffs. Among the notable options, Octopus and Scottish Energy stand out, providing best SEG Tariff rates for exported electricity.
To access the SEG program, you must meet specific requirements, including furnishing Microgeneration Certification Scheme (MCS) documentation for your property and owning an export meter. These criteria ensure that you are properly equipped to participate in the program and receive fair compensation for your renewable energy contributions.
If you secure the best SEG Tariff rates from a supplier company, it offers a lucrative opportunity to both reduce your carbon footprint and earn money, with Octopus and Scottish Energy leading the way in offering favourable terms.
