What does it mean to export electricity and how can I get started?

If you’ve been looking into how you can save on your electricity bills, you might have come across phrases like “electricity exports”, “feed-in tariffs” and “smart export guarantee.” But what does it really mean to export electricity? And what do you need to start taking part? In this article, we demystify the world of electricity exports and explain how you can take advantage of them to reduce your bills.

What are electricity exports?

The word “exports” is used to describe the electricity which households sell back to the grid, either from their renewable generation or their battery system. Since 2010, households across Great Britain have been able to earn money for these exports, initially through feed-in tariffs, and now through competitive export tariffs offered by various energy suppliers. If you have, or are planning to install, solar panels and/or a battery, export tariffs are a fantastic way to be rewarded for any excess generation while helping to green the grid.

How much can I be paid for my electricity exports?

Previously, with feed-in tariffs, households with solar or wind installations could earn between 7-75p per kilowatt-hour (kWh) for exported electricity. Since then, two main types of export tariffs have emerged:

• Smart Export Guarantee (SEG) tariffs: Larger energy suppliers are required by the government to offer SEG tariffs, but since they only need to be set above zero the rates are often low (typically 3-5p per kWh).

  
  

• Competitive export tariffs: Many suppliers offer these tariffs with much higher rates, typically around 15p per kWh.

How can I find the right export tariff for my household?

The right export tariff for your household depends on a number of factors, including when you had solar panels installed and how you use electricity. But don't worry, we've created a helpful guide to make it easy to find the perfect fit.

1. You installed solar panels before 2020

If you installed your solar panels before 2020, you’re probably benefiting from a feed-in tariff. These tariffs generally offer higher payments than current market rates, so it’s best to stick with your current tariff until it ends. 

2. You don’t have solar panels or a battery yet, but want them

Many energy suppliers offer special deals with high export rates (up to 40p per kWh!) for the first year or two when you buy your system through them or an affiliated installation company. These deals could shorten your payback period. However, it’s worth doing your own research to determine if this is the right choice for you compared to an independent installer, who may offer a lower up-front cost. We would always recommend getting at least one other quote to ensure you’re getting the best deal.

3. You have solar panels or a battery, but are not on a feed-in tariff 

Already have solar panels and/or a battery, but are not on a feed-in tariff? You have the freedom to choose the most attractive export tariff for you. Considering their low rates, we would recommend avoiding a SEG tariff and opting for one of the many competitive export tariffs available. However, the optimum combination of import and export tariff for your household depends on the unique way your household uses electricity, especially for those with smart devices. What’s more, not all export tariffs are compatible with all import tariffs - so how do you work out the best tariff for your home?

Good news! Octopus Energy customers can use our smart tariff comparison tool. We analyse your smart meter data to compare your electricity usage against our comprehensive smart tariff database to find the best import and export tariffs to fit your needs.

We’ll soon be able to offer this service to all smart meter owners in the GB market. For now, we’ve prepared a list of the top five export tariffs available and a list of all of the import tariffs you can combine them with.

If you have any questions on the above information, or your case is unusual, we’d love to hear from you: hello@smartshift.energy. For everyone else, happy exporting!