Can I Sell Electricity From My Solar Panels in the UK?

A plain-English look at the Smart Export Guarantee — what it pays in 2026, who qualifies, and the tax rule that’s catching some solar owners out.

Quick answer: yes, you can. If you’ve got solar panels on your roof, there’s a government-backed scheme that pays you for the electricity you don’t use. It’s called the Smart Export Guarantee, or SEG, and plenty of homes are still missing out simply because nobody’s pointed them to it. I’ve gone through the latest 2026 rates and rules so you don’t have to.

How does selling your solar power actually work?

Here’s the part most explainer pages skip. Your panels generate electricity whenever there’s daylight, but your house can’t always use it all — maybe you’re out, or it’s a bright afternoon and the kettle’s not on. Whatever’s left over flows down the cable and out onto the National Grid, where it powers somebody else’s home nearby. Under the SEG, your supplier has to pay you for every exported unit (kWh). You’re only paid for what you send out, not what you use yourself — but that’s still money for electricity that would otherwise go to waste.

Am I eligible?

You don’t need anything exotic. Most homes with panels already tick these boxes — you can check the full official rules on GOV.UK:

• ✓An MCS-certified installation (your installer should have given you this certificate)
• ✓A smart meter that records exports every half hour
• ✓A supplier willing to take you on for SEG — it needn’t be the one billing you for power

How much could I actually earn?

A typical 4kW system generates around 3,500–4,000 units (kWh) a year. Without a battery, you’ll usually export roughly half of that. So a home exporting 1,750 kWh a year could earn anywhere from £70 to £350 — purely depending on the rate it’s signed up to:

What rates are actually on offer in 2026?

Rates shift constantly, and comparing them properly pays off. Through 2026, fixed tariffs have ranged from a few pence per kWh up to around 16p, with familiar names like Octopus Energy, British Gas, E.ON Next, EDF and Good Energy all offering at least one SEG tariff. Battery or EV owners can often do better with time-of-use rates.

These figures show the shape of the market, not a quote — always confirm the live rate with the supplier before signing up; Ofgem keeps an official list of every licensed SEG supplier if you’d like to check.

Will I have to pay tax on it?

Most domestic solar income is tax-free, but HMRC gives everyone a £1,000-a-year trading allowance for casual extra income, and SEG payments count towards that limit alongside any other side earnings. With well over 1.6 million UK homes now generating their own power, more people are bumping into this than ever. If your total side income — SEG included — goes over £1,000 in a tax year, you’ll need to register for Self Assessment and declare it, even if no tax is actually owed.

Alice Wright

I have been a Renewable Energy Consultant for over 20 years at a Multi-national company, worked across large-scale solar projects. I now advise homeowners and businesses across the UK on choosing the right solar panels, batteries, and installers for their homes. My aim is to cut through the jargon and help people make confident, well-informed decisions about going solar and save their precious time and money.