As more homeowners and businesses in the UK turn to solar energy, one question comes up time and again: how do solar tariffs work, and how do they affect the value of my solar investment? At Stag Solar, we believe in making things simple, so let’s break it down.
What Are Solar Tariffs?
Solar tariffs are government-backed schemes or utility payments that reward you for the clean electricity your solar panels generate. They usually fall into two categories:
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Export Tariffs – payments you receive for the surplus electricity you don’t use at home and send back to the grid.
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Feed-in Tariffs (FiT) – older schemes that paid both for generating electricity and exporting it. Although FiTs are now closed to new applicants, many early adopters are still benefiting.
The Current Scheme: Smart Export Guarantee (SEG)
Since January 2020, the Smart Export Guarantee (SEG) has replaced the Feed-in Tariff. Under SEG:
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Energy suppliers with over 150,000 customers must offer a tariff to buy your excess solar electricity.
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Tariff rates vary depending on the supplier – some pay a fixed rate, others a flexible one linked to wholesale energy prices.
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You’ll need a smart meter or export meter to measure what you send to the grid.
This means you’re effectively turning your home or business into a small power station, earning money for every kilowatt-hour (kWh) you don’t use.
Why Tariffs Matter
Solar tariffs directly impact the return on investment (ROI) of your solar installation:
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Higher savings on bills – by using your own generated electricity first.
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Extra income – from exporting surplus power.
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Faster payback periods – many households see their system pay for itself in 7–10 years, sometimes sooner with favourable tariffs.
Maximising Your Benefits
Here are a few smart strategies:
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Choose the right supplier – compare SEG tariffs to ensure you’re getting the best rate.
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Pair solar with battery storage – store surplus power and use it when energy prices are highest.
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Shift usage to daylight hours – run appliances like washing machines or dishwashers when your panels are producing the most.
The Future of Solar Tariffs
With rising energy costs and the UK’s push towards net-zero, solar tariffs are likely to evolve. More flexible, real-time export tariffs are already being trialled, which could mean even better returns for solar customers in the future.
Final Thoughts
Installing solar is about more than just saving money – it’s about energy independence, sustainability, and future-proofing your home or business. At Stag Solar, we’ll not only design and install your system but also guide you through the tariff options that maximise your benefits.
💡 Want to find out how much you could save and earn with solar tariffs? Contact Stag Solar today for a free consultation.