As the UK continues to shift towards renewable energy sources, solar power has become an increasingly popular choice for homeowners. Installing solar panels can significantly reduce electricity bills and contribute to a greener environment. However, one common question among solar panel owners is what to do with surplus energy. So, let’s take a look – should you store or sell excess energy from solar panels back to the grid?
Selling this excess energy back to the grid not only helps in recouping some of the investment costs but also supports the national energy infrastructure. This article will guide you through the process of selling solar energy back to the grid in the UK, covering all the need-to-know aspects, from understanding how surplus energy is generated, to the benefits of selling it.
What is surplus solar energy?
Surplus solar energy is the excess electricity generated by solar panels that is not immediately consumed by the household or business. Solar panels can produce more electricity than is needed, especially during peak sunlight hours and in the sunniest months of the year. This excess energy can be either stored in batteries for later use or exported back to the national grid, providing an opportunity for solar panel owners to earn money and ensure that no renewable energy goes to waste.
What happens to unused electricity generated by solar panels?
Unused electricity generated by solar panels can be used in two ways: it can either be stored in energy storage systems (such as batteries) for later use or exported back to the grid. When solar panels generate more electricity than needed, a storage system can capture and hold this energy. If there is no storage system in place, the surplus electricity is typically fed back into the grid, ensuring it doesn’t go to waste.
How does selling solar electricity back to the grid work in the UK?
In the UK, selling solar electricity back to the grid is facilitated by the Smart Export Guarantee (SEG). The SEG is a government-backed initiative that requires large energy suppliers to pay small-scale generators, like homeowners with solar panels, for the electricity they export to the grid.
To participate in the SEG, you need to have a smart metre installed that can accurately measure the amount of electricity you export. You then need to choose an SEG tariff offered by an energy supplier. The earnings are usually credited to your account or paid out periodically.
How much can you earn by selling solar power back to the grid?
The earnings from selling solar power back to the grid depend on several factors, including the amount of surplus energy you generate, the SEG tariff rate, and the specific terms of your agreement with the energy supplier. SEG tariffs vary between suppliers, with some offering fixed rates and others offering variable rates that change with market conditions. On average, SEG rates range from 1p to 5.5p per kWh as of 2024. While this might not seem like a significant amount, over time, it can contribute to reducing the overall cost of your solar panel investment.
What is the Smart Export Guarantee?
The Smart Export Guarantee (SEG) is a scheme introduced by the UK government to replace the previous Feed-in Tariff (FiT) program. Under the SEG, energy suppliers with over 150,000 customers are mandated to offer payments to small-scale renewable energy generators, such as homes with solar panels, for the electricity they export to the grid. The SEG ensures that surplus energy is used efficiently and that small-scale generators are compensated for their contributions to the energy supply.
Should you store or sell your unused solar electricity?
Deciding whether to store or sell unused solar electricity depends on your energy consumption patterns, financial considerations, and personal preferences. Storing energy can provide greater energy independence and protection against power outages, while selling surplus energy can offer financial benefits and contribute to the national grid’s stability and sustainability.
What are the benefits of storing unused solar electricity?
Storing unused solar electricity in batteries has several benefits:
Energy independence
When you have stored energy, you are less reliant on the national grid. That means you’ll have a backup source of electricity during power outages.
Cost savings
Storing your solar electricity means your household or business can use it at peak times when electricity rates are higher, leading to lower energy bills.
Environmental impact
Storing energy maximises the use of renewable energy in your own home or business, and reduces the need for fossil-fuel-generated electricity during times of high national demand.
What are the benefits of selling unused solar electricity?
Selling unused solar electricity also has its advantages:
Financial returns
Selling your unused solar energy provides an additional income stream through Smart Export Guarantee (SEG) payments.
Grid support
Selling your unused solar energy contributes to the stability and sustainability of the national grid by supplying clean energy when demand is high.
No battery required
If you choose to always sell your energy back to the grid, you can avoid the initial costs and maintenance associated with battery storage systems.
Selling surplus solar energy back to the grid in the UK is a viable and beneficial option for solar panel owners. The Smart Export Guarantee provides a structured way to earn money from unused electricity, supporting both personal financial goals and the national energy infrastructure. Whether you choose to store or sell your excess solar power depends on your individual circumstances and priorities, but both options contribute positively to the shift towards renewable energy.
How can I make sure I earn the most possible from selling excess solar energy?
If you’re considering investing in a solar panel installation, here are some top tips to make sure that you get the maximum return possible when you sell energy back:
Choose a reputable solar installer
You’ll need to make sure your solar panels are installed correctly to get the most out of your system. Choose a MCS-certified solar panel installer (like Solarsmith®) to ensure your installation meets strict industry requirements.
Keep your solar panels clean
Regular maintenance of your solar system is crucial to ensure it runs smoothly. Solar panels must be kept clean, as dirt or debris such as leaves will block sunlight and result in less energy being generated. It’s also important to bird-proof your solar installation to prevent wildlife from casting shadows on your panels!
Monitor your solar installation’s performance
Keep an eye on how your solar panels are performing and raise any issues with your installer, who will help ensure that your installation is operating as efficiently as possible.
Get your free solar panel installation quote today with Solarsmith®
Keen to find out more? We’d love to help. Simply get in touch to arrange your free solar quote today with Solarsmith®, the MCS-registered solar panel installation experts operating in South London and Surrey.
At Solarsmith®, we offer a full solar panel installation service, from design and supply through to install and aftercare. Our highly trained team will talk you through every step of the process, answer any questions you have, and ensure your installation is carried out to the highest standards.
Let us help you save money, reduce your carbon footprint and gain energy independence today.
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