Solar export tariffs: what are they and how do you sign up?

Exporting-to-the-grid
Last updated on 2 May 20248 min read

How to sign up for a solar export tariff, and how much you can expect to earn.

Photo of solar panel writer Josh Jackman against blank background

Written byJosh Jackman

A small cartoon yellow solar panel, a small carton pylon, and a small cartoon pile of money, turquoise background

đź’· Solar export tariffs pay you for all the electricity you send to the grid

đź“… The sign-up process usually takes 2-8 weeks

⚡ One of these tariffs can cut your annual electricity bills by hundreds of pounds

Solar panel systems can save you hundreds of pounds on your energy bills every year – but even with a solar battery, you’ll always generate more electricity than you can use.

That’s where solar export tariffs come in, to pay you for all the electricity you send to the grid.

In this guide, we’ll go through all the requirements of signing up for a solar export tariff, every step of the process, and how much you can expect to earn.

If you’re interested in how much you could save with a solar & battery system, answer a few quick questions below and we'll provide you with an estimate.

What is a solar export tariff?

A solar export tariff pays you for all the electricity you send to the grid.

At first, solar export tariffs were created in response to the government launching the Smart Export Guarantee (SEG) in 2020.

This initiative compels energy suppliers with 150,000 customers or more to pay households for any renewable energy – including solar electricity – they export to the grid.

But some companies have now released solar export tariffs that are more profitable than other SEG rates, making them the best export tariffs around.

How much will I get paid?

How much you’ll get paid by a solar export tariff primarily depends on two main factors: how many kilowatt-hours (kWh) of electricity you send to the grid, and the rate you sign up to, which will be measured in pence per kWh.

You’ll export around 40% of the electricity your panels generate, on average – a figure we’ve based on a household experiencing average UK irradiance with a 4.4kWp solar panel system and a 5.2kWh battery, using 3,500kWh of electricity each year.

If this household were to sign up to the Intelligent Octopus Flux export tariff, it would earn a peak rate of 30.3p per kWh of exported electricity, on average. This would amount to around ÂŁ350 each year in export payments.

With the average import rate currently standing at 24.5p per kWh, this is an excellent option – and miles better than the export tariffs companies offered when the Smart Export Guarantee began.

What is the best solar export tariff?

The best solar export tariff is Intelligent Octopus Flux (IOF).

This tariff offers Octopus’s import customers a peak rate of 30.3p per kWh between 4pm and 7pm (on average).

The rest of the day, you’ll get paid 22.73p (on average) for every kWh you send to the grid – which is still a better export rate than you can get from any other supplier.

We have a partnership with Octopus, so if you get a Sunsave Plus solar & battery system installed at no upfront cost, you’ll gain priority access to Intelligent Octopus Flux.

How does Intelligent Octopus Flux work?

Intelligent Octopus Flux can offer significantly higher rates than its competitors’ tariffs because it’s a smart tariff.

This means it utilises smart battery controls to automatically charge your battery with solar energy and grid electricity when it’s cheapest, then export this electricity to the grid when you can gain the most profit – that is, during the 4pm-7pm peak period.

In the case of IOF, Octopus always charges exactly the same rate for import and export. At off-peak times, the import and export rates fall together, and at peak times, the import and export rates rise together.

This actively encourages households to use less - and export more - electricity at peak periods, which means Octopus can minimise the amount of wholesale electricity it has to buy during these times.

Instead, it can divert the excess electricity from solar households to the homes that need it.

This saves Octopus money, as energy companies usually pay higher prices for wholesale electricity at peak periods, and Octopus passes on some of these savings to you, as an incentive.

It’s a virtuous cycle for everyone, apart from the wholesale supplier.

IOF also allows Octopus to benefit from initiatives like the National Grid Electricity System Operator’s Demand Flexibility Service, which rewards suppliers for using less energy at peak times – and again, Octopus passes some of these profits to its IOF customers.

To sign up for Intelligent Octopus Flux, click the button below.

Black solar panels on a terracotta roof of a detached house, in a neighbourhood near other houses and trees, under a pale blue sky

What are the requirements for a solar export tariff?

To sign up for a solar export tariff, you’ll always need to have a smart meter, as well as documents that prove you own a certified, permitted solar installation.

Some suppliers require you to own a specific brand’s solar panels or battery – usually their own – while others only offer their highest rates to customers in certain geographical areas.

And while you’re free to export your solar electricity to a different supplier from the one you import your electricity from, companies generally only make their best export tariffs available to their own import customers.

Here’s everything you may need to qualify for a solar export tariff:

  • Solar panels
  • A document showing your system is certified under the Microgeneration Certification Scheme (MCS) or Flexi-Orb
  • Proof that you own your solar panel system
  • A successful G98 application if your inverter capacity is 3.68 kW or less, or
  • A successful G99 application if your inverter capacity is more than 3.68 kW
  • A single-line diagram or schematic of the system
  • A solar battery

If you’re wondering how much a solar & battery system could save you, answer a few quick questions below and we’ll provide you with an estimate.

How do you sign up for a solar export tariff?

Once you have a smart meter and a solar installation that’s been certified by either the MCS or Flexi-Orb, you’re ready to sign up for a solar export tariff.

Just follow the steps below, and you’ll be receiving payments before you know it.

1. Choose your solar export tariff

The first step is to go through all the best export tariffs, and decide which of the highest-paying rates suits your household.

For instance, if you have a GivEnergy battery alongside your solar panels – or are comfortable buying one – then Intelligent Octopus Flux may be the best choice for you. If not, you might want to opt for the next-best rate, Octopus Flux.

If your final choice requires you to move to a different electricity supplier, you’ll need to complete the switch before applying for that provider’s export tariff.

Customers who decide to receive an export tariff from the supplier they currently receive their electricity from won’t have to go through this process – but may lose out on savings.

2. Fill in an application form

Most export tariff suppliers have online applications, while others require you to email your completed form.

You’ll have to send a list of documents, either with your online application or just after submitting it. These files will vary depending on your supplier, but they can include:

  • An MCS or Flexi-Orb certificate
  • Photographic proof you have a smart meter
  • A recent electricity bill / other proof of address
  • Proof that you own the solar installation
  • A schematic or single-line diagram of your system
  • Proof that your DNO has approved your G98 or G99 application
  • Your bank details, if you don’t already receive your electricity from the supplier

For example, to apply for Intelligent Octopus Flux, you must already be signed up to an Octopus export tariff.

Once you’ve completed that process, you just need a smart meter, a system with solar panels and a GivEnergy battery, and an Apple or Android smartphone.

3. You or your export tariff supplier will contact your DNO

Within around two days, your export tariff supplier will process your application.

At this point, either you or your supplier should contact your Distribution Network Operator (DNO), which is the organisation that runs the hardware supplying electricity to your region.

The DNO will then supply your property with an export MPAN (Meter Point Administration Number) – a unique, 13-digit number that identifies your electricity meter.

This usually takes a DNO between one and four weeks, and is typically the longest stage of the sign-up process.

4. Send your supplier a meter reading

Around five days after your DNO creates your MPAN, your supplier will ask for a first export meter reading, usually along with a photo to prove the reading is correct.

You can find this information on your smart meter.

If it’s not clear how to access your export data, just ask your export tariff supplier to walk you through the process.

5. You’re ready to receive payments

Once your supplier has verified your reading, all you have to do is sit back and wait for the savings to start rolling in.

Energy companies pay export tariffs at different intervals, though. While Octopus sends your revenues on a monthly basis, OVO and Good Energy pay out every three months, and E.ON only does so once per year – unless you specifically request quarterly payments.

The first payment you get will usually be backdated to when you sent off your application for the tariff, so don’t worry: you’ll be paid for all the electricity you export in the meantime.

Can you access other earnings on top of an export tariff?

You can access some other earnings on top of an export tariff.

Firstly, you can use your solar panels as efficiently as possible. If you don’t have a solar battery, this means using your appliances – like a washing machine, dishwasher, or oven – during the daytime, when your system is generating electricity.

If you do have a battery, but you’re on a standard export tariff without time of use pricing, you’ll simply want to ensure you use as much of your solar electricity as possible, as this will be more valuable to you than exporting it.

Almost all major energy suppliers have also signed up to the Demand Flexibility Service, run by the National Grid Electricity System Operator, which offers customers financial rewards for using less energy at peak usage periods in winter.

Households can register for this programme through their supplier – and if you have a solar & battery system, it’s relatively easy for you to profit (to the tune of around £3 per kWh).

Summary

Signing up for a solar export tariff is the best way to profit from the excess electricity your solar panels generate.

If you choose one of the top tariffs, you can make hundreds of pounds by selling electricity you weren’t going to use anyway – and help make the grid greener.

And as long as you follow our simple steps, the process should be quick and straightforward.

If you would like to see the savings you could get from a solar & battery system, click the button below. Just answer a few quick questions, and we’ll provide an estimate.

Signing up for a solar export tariff: FAQs

Who pays the highest solar export tariff?

Octopus pays the highest solar export tariff, which is called Intelligent Octopus Flux.

The supplier offers this tariff to its own import customers who also have solar panels and a GivEnergy battery.

Qualifying households can gain 30.3p (on average) for every kWh they send to the grid between 4pm and 7pm, and 22.7p (on average) for all the electricity they export at other times. These rates do vary based on your location in the UK, though.

You’ll make 27p per kWh, on average – but you can earn more by exporting more electricity at peak times, which your Octopus app can handle for you.

How much can you earn from a solar export tariff?

You can earn around ÂŁ350* from a solar export tariff, as long as you sign up to either Intelligent Octopus Flux or Octopus Flux.

Other solar export tariffs can also net you hundreds of pounds, but the highest revenues can be gained with Octopus’s two variable rates.

As well as cutting your electricity bills, this also means solar panels generally have the quickest break-even point on these tariffs.

* Based on a household experiencing average UK irradiance with a 4.4kWp solar panel system and a 5.2kWh battery, using 3,500kWh of electricity each year

Are solar export revenues taxable?

Solar export revenues are usually not taxable – but it depends.

If your solar panel system generates more than 120% of your annual electricity consumption, it becomes taxable.

However, you’ll still have a £1,000 trading allowance, meaning you can make solar export revenues up to this point without paying any tax.

And even if you make more than ÂŁ1,000 from selling electricity to the grid, you can still claim a ÂŁ1,000 deduction.

Photo of solar panel writer Josh Jackman against blank background

Written byJosh Jackman

Josh has written about the rapid rise of home solar for the past five years. His data-driven work has been featured in United Nations and World Health Organisation documents, as well as publications including The Eco Experts, Financial Times, The Independent, The Telegraph, The Times, and The Sun. Josh has also been interviewed as a renewables expert on BBC One’s Rip-Off Britain, ITV1’s Tonight show, and BBC Radio 4 and 5.

Copyright © 2024 Sunsave

Sunsave Group Limited (company number: 13741813) and its affiliates, Sunsave UK Limited (company number: 13941186) and Sunsave Energy Limited (company number: 13952135), together trading as “Sunsave”, provide renewable energy systems and finance and are registered at 23 Ansdell Terrace, London, W8 5BY. Sunsave Energy Limited (FRN: 979494) is a lender authorised and regulated by the Financial Conduct Authority. Sunsave UK Limited (FRN: 977566) acts as a credit broker and can introduce you to a panel of lenders for the purpose of arranging finance. Sunsave UK Limited is an appointed representative of Product Partnerships Limited (FRN: 626349) which is authorised and regulated by the Financial Conduct Authority and registered at Suite D2 Josephs Well, Hanover Walk, Leeds, LS3 1AB.