With all the jargon and acronyms surrounding solar energy – FiT, SEG, import, export – it’s important not to get overwhelmed and put off. At SolarThermUK we set out to make solar simple and this article will explain all you need to know about getting paid for any electricity you supply back to the grid.
What is the FiT (Feed-in Tariff)?
If your solar PV system was installed prior to 2019, you may have heard of the feed-in tariff (FiT). The FiT scheme was government backed and designed as an initiative to promote renewable energy.
The FiT scheme closed to new applications in 2019, but many households still benefit from it today. The FiT scheme is in place for 20 years and is currently paying as high as 20.38p per kWh exported. If you are already receiving FiT payments, it’s worth reviewing your current rate and comparing it to other export tariffs before switching as in most cases, the FiT rate is much higher than newer schemes like SEG.
What is the SEG (Smart Export Guarantee)?
In 2020, the government replaced FiT with the Smart Export Guarantee (SEG). A solar PV system is one of the cheapest and cost-effective systems of low-carbon technology and is also one of the criteria that must be met for a SEG payment. You will also need to have a MCS certificate, so choosing the right installer – like SolarTherm UK – is critical to receive export payments.
Unlike with FiT, there are no fixed rates that suppliers have to pay for SEG. Most SEG payments in 2025 are between 1p and 6p per kWh exported for non-customers. Most suppliers however, offer better tariffs for their existing customers. It’s important to shop round using a reliable comparison site to find the best export tariff or deal for what you are exporting.
What are Export Tariffs?
Beyond FiT and SEG, some energy suppliers offer their own export tariffs. These usually offer a higher rate to their customers who are purchasing electricity from them. They are not government protected meaning suppliers can set any rate they wish and include their own specific terms and conditions. Currently, the best export tariff is from Octopus Energy on their Intelligent Octopus Flux plan.
How Do I Receive Payment?
If you are not already on a FiT, SEG or export tariff, you need to sign up to start receiving payment for your exported electricity. Naturally, your solar PV system will prioritise powering your home before exporting, but without battery storage, any excess electricity, which depending on the size of your system could be quite significant, is exported back to the grid. Without an export tariff set up, you are quite literally giving your money away.
Whether you are new to solar or thinking about changing tariffs, get in touch with us for advice. At SolarTherm UK we offer free honest expert advice to all our customers – no hard-sell sales techniques needed.
