Microgeneration & Solar Export Payments in the UK
UK homeowners and businesses can sell surplus solar electricity back to the grid under the Smart Export Guarantee (SEG). Export rates range from 3–15p/kWh depending on your supplier.
Last updated March 2026
Fact-checked by John Rooney, Solar Energy Editor. Editorial policy
Quick Answer
UK homeowners with solar panels can sell excess electricity back to the grid at 3–15p/kWh depending on their supplier under the Smart Export Guarantee (SEG). You need a G98/G99 application through your DNO and an MCS-certified installation to start earning.
Rates as of early 2026. Verify directly with your supplier.
How does microgeneration export work in the UK?
The UK's Smart Export Guarantee (SEG) requires all licensed electricity suppliers with 150,000 or more customers to offer a payment for surplus electricity exported to the grid by microgeneration customers. Here's how the process works from installation to your first export payment.
“The Smart Export Guarantee ensures that small-scale low-carbon generators are paid for the electricity they export to the grid, supporting the UK's net zero ambitions.”
Install a Solar PV System
Have an MCS-certified installer fit your solar panels. A typical residential system is 3–6 kWp. Your installer handles the technical specifications and safety certification. MCS certification is required to be eligible for the SEG.
G98/G99 Application to Your DNO
Your installer submits a G98 application (for systems up to 16A per phase, typically under 3.68 kWp) or G99 application (for larger systems) to your DNO (Distribution Network Operator) on your behalf. This notifies the DNO that a microgeneration system will be connected.
Smart Meter Installation
Your energy supplier arranges a smart meter at your property (if you don't already have one). The smart meter records both electricity imported from the grid and electricity exported to it, in half-hourly intervals.
Register with a SEG-Licensed Supplier
Contact an electricity supplier offering SEG tariffs to register as a microgenerator. Most suppliers have an online sign-up form. You'll need your MPAN, MCS certificate, and G98/G99 confirmation. You don't have to export to the same supplier you import from.
Start Earning Export Payments
Once registered, your supplier pays you for every kWh of surplus electricity exported to the grid. Payments appear as a credit on your electricity bill or as a separate payment, depending on your supplier.
What are the solar export rates in the UK in 2026?
Under the Smart Export Guarantee (SEG), all licensed electricity suppliers with 150,000+ customers must offer a payment when you sell solar electricity back to the grid. Compare the best solar export rates below. Rates vary significantly (from 3p to 15p per kWh), so it pays to compare before signing up.
| Supplier | Export Rate | Annual Export Earnings (4kWp) | Notes |
|---|---|---|---|
| Octopus Energy | 15p/kWh | £225/yr | Agile export tariff available. Leading green energy supplier. |
| EDF | 4.6p/kWh | £69/yr | Fixed SEG rate. Simple sign-up process. |
| British Gas | 3.3p/kWh | £50/yr | Largest UK supplier. Must be an existing customer. |
| OVO Energy | 4p/kWh | £60/yr | Offers both fixed and variable SEG tariffs. |
| E.ON | 3.5p/kWh | £53/yr | Fixed SEG rate. Quarterly payments. |
| Scottish Power | 3.5p/kWh | £53/yr | Fixed SEG rate. Part of Iberdrola group. |
Rates as of February 2026 and subject to change. Always verify directly with your supplier. SEG export rates are not regulated; suppliers set their own rates under the SEG framework. Annual earnings assume a 4kWp system exporting ~1,500 kWh/year.
Some suppliers offer variable or agile export tariffs (e.g. Octopus Agile Outgoing) where rates change every half hour based on wholesale prices. These can pay significantly more during peak demand but rates vary and are not included in the fixed-rate comparison above.
Self-Consumption vs. Export: What's More Valuable?
Using your own solar electricity (self-consumption) saves you 24–34p/kWh by avoiding grid imports. Exporting earns you 3–15p/kWh. Self-consumption is therefore always more valuable. A solar battery can increase your self-consumption rate from a typical 30–40% to 60–80%, reducing what you export and maximising savings.
How do you complete the G98/G99 application for solar export?
The G98 or G99 application is the official notification to your DNO (Distribution Network Operator) that a microgeneration system is being connected to the electricity grid at your property. It's a mandatory step before you can earn export payments.
What Your Installer Does
- ✓ Completes the G98 (up to 16A per phase) or G99 (larger systems) application form with system details (capacity, inverter type, protection settings)
- ✓ Submits the form to your DNO via their online portal
- ✓ Provides an MCS certificate and electrical completion certificate
- ✓ Ensures the system meets G98/G99 Engineering Recommendation requirements
What Your DNO Does
- ✓ Processes the G98 notification (typically within 10 working days) or G99 application (up to 45 working days)
- ✓ Confirms the connection is acceptable for the local network
- ✓ Updates their records to show your property as an exporting site
- ✓ Your energy supplier arranges a smart meter if needed
Important
Your MCS-certified installer will handle the G98/G99 application on your behalf. For G98 systems (single-phase up to 16A, typically under 3.68 kWp), the process is a simple notification and is usually approved automatically. Larger systems require a G99 application which may involve a network study by the DNO.
Do you pay tax on solar panel income in the UK?
HMRC has confirmed specific tax rules for income earned from selling surplus electricity from a domestic microgeneration system.
Tax-Free Allowance
- ✓ First £1,000/year of export income is covered by the trading allowance (tax-free)
- ✓ Applies to individuals only (not companies)
- ✓ No need to register for Self Assessment if under £1,000
- ✓ Most residential SEG earnings fall well within this allowance
Above £1,000/Year
- • Income above £1,000 is taxable at your marginal income tax rate
- • Must be declared on your Self Assessment tax return
- • National Insurance may also apply to the taxable portion
- • Most residential systems earn well under £1,000/year in exports
Typical Export Earnings
A typical 4 kWp residential solar system in the UK exports roughly 1,500–2,000 kWh/year to the grid (assuming 30–40% self-consumption). At an export rate of 4.5p/kWh, that's £68–£90/year, comfortably within the tax-free trading allowance for most homeowners.
What regulations govern microgeneration in the UK?
Microgeneration in the UK is governed by several bodies. Here's who does what.
Ofgem
Administers the Smart Export Guarantee (SEG). Requires all licensed suppliers with 150,000+ customers to offer an export tariff. Monitors compliance.
MCS (Microgeneration Certification Scheme)
Certifies solar PV installers and products. MCS certification is required to be eligible for the SEG. Maintains the certified installer database.
DNO (Distribution Network Operator)
Manages the local electricity grid. Processes G98/G99 applications. Maintains the distribution network. Examples: UK Power Networks, Western Power Distribution, Northern Powergrid.
Department for Energy Security & Net Zero
Sets national energy policy. Established the Smart Export Guarantee. Legislates renewable energy frameworks.
HMRC
Administers the £1,000/year trading allowance that covers domestic microgeneration income.
Your Electricity Supplier
Sets SEG export payment rates. Manages your microgeneration registration. Pays you for exported electricity via bill credit or bank transfer.
Related Guides
Where can you find official microgeneration information?
For the most up-to-date information, refer to these official resources.
Ofgem — Smart Export Guarantee (SEG)
SEG rules, licensed supplier obligations, export tariff requirements
MCS — Microgeneration Certification Scheme
Certified installer database, product certification, SEG eligibility
Energy Networks Association — G98/G99
G98/G99 application process, DNO connection, grid notification
GOV.UK — Smart Export Guarantee
Government policy, scheme overview, legislation
HMRC — Trading Allowance
£1,000 trading allowance, tax-free threshold, filing requirements
MCS — Find a Certified Installer
Find an MCS-certified installer near you
Frequently Asked Questions About Microgeneration
How much can I earn from selling solar electricity in the UK?
SEG export rates range from 3–15p/kWh depending on your supplier. A typical 4 kWp system exports 1,500–2,000 kWh/year, earning £50–£225 annually. The first £1,000/year is covered by the trading allowance (tax-free).
Do I need a smart meter to get export payments?
Yes. A smart meter is required to measure both imported and exported electricity. Your energy supplier can arrange a smart meter installation. Half-hourly export data from your smart meter is used to calculate your SEG payments.
What is the G98/G99 application?
The G98 is a notification submitted to your DNO (Distribution Network Operator) by your installer for systems up to 16A per phase (typically under 3.68 kWp). Larger systems require a G99 application. It notifies the DNO that a microgeneration system has been connected at your property. Your installer handles this on your behalf.
Can I switch electricity supplier and keep my export payments?
Yes. You can switch supplier at any time. Your new supplier must also offer a SEG tariff if they have 150,000 or more customers. Compare rates before switching, as SEG export tariffs vary significantly between suppliers.
Do I need to pay tax on solar export income?
The first £1,000/year is covered by HMRC's trading allowance (tax-free). Most residential systems earn well under this threshold. If your export income exceeds £1,000, the excess is taxable at your marginal income tax rate and must be declared on your Self Assessment tax return.
Can I get SEG payments without any grant?
Yes. The SEG is completely separate from any grant schemes. You can sell surplus electricity regardless of whether you received a grant. You just need an MCS-certified installation, a G98/G99 notification to your DNO, a smart meter, and registration with a SEG-licensed supplier.
What is the best solar export rate in the UK?
Octopus Energy currently offers the highest standard SEG export rate at around 15p/kWh with their Agile Outgoing tariff (variable rate). For fixed rates, most suppliers offer between 3–5p/kWh. Rates as of early 2026.
How much do solar panels earn per year in the UK?
A typical 4 kWp residential solar system earns £50–£225 per year in SEG export payments, depending on your supplier's rate. This is in addition to the savings from self-consumption, which are worth £700–£1,000 per year. Combined, solar panels save or earn £750–£1,225 annually for the average UK home.
John Rooney is the founder of Solar Info and has been covering the UK solar energy market since 2023. He fact-checks all content against official MCS and Ofgem data and maintains relationships with MCS-certified installers across the UK.
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