Solar export payments: What can your business actually earn?

When businesses consider commercial solar, most of the financial conversation centres on reducing electricity bills. That makes sense because using the power you generate on-site is where most of the return is typically found.

However, there is another potential source of income to consider: solar export payments. When your system produces more electricity than your business needs at that moment, the surplus can be sent back to the grid, and you can be paid for it.

Export income is worth understanding, but it also needs to be put into perspective. Whilst it can make a useful contribution to your overall return, it is not necessarily the most valuable use of generated solar power.

Understanding solar export payments

In simple terms, solar export payments are what you’re paid for the electricity your panels generate but your business doesn’t use.

On a sunny afternoon, a well-sized commercial solar system can produce more power than the site needs at that moment. Rather than letting that surplus go to waste, it’s exported to the national grid – and you’re paid for every unit that leaves your site.

Commercial solar export income can be secured in more than one way. The Smart Export Guarantee (SEG), a government-backed scheme launched in 2020 that replaced the old Feed-in Tariff, remains one route offered by some suppliers. SEG rates and terms are set by individual suppliers, so commercial tariffs can change over time. Larger commercial installations more commonly use dedicated commercial export agreements, which have existed for many years and are negotiated specifically for business generation.

You can read the official detail on the Ofgem Smart Export Guarantee page. For SEG applications, MCS certification or equivalent is required for solar PV installations up to 50kWp. Above 50kWp, an MCS certificate is not required, although the installation must still be suitably certified and comply with relevant electrical standards, DNO requirements, Building Regulations and applicable legislation.

How much is exported solar energy actually worth?

This is where expectations need managing.

Historically, some suppliers offered commercial SEG rates of around 15p/kWh. Many of those tariffs were variable rather than fixed, and recent market changes have seen rates reduce significantly – in some cases to around half their previous level. That means 15p/kWh should not be treated as a routine assumption in a commercial solar model.

For many businesses, particularly larger commercial installations, a dedicated commercial export agreement is now the more common route. These agreements are typically fixed for 12-24 months, giving greater certainty over export income. Current commercial export contract rates are generally around 6-8p/kWh, depending on the supplier, market conditions and contract terms. Battery storage can also change how much energy is exported and when, so it should be considered alongside the export arrangement rather than in isolation.

Here’s the key point every business owner needs to understand – export rates are almost always lower than the value of using that electricity on-site. Export revenue remains an important part of the financial case for solar, but it should be modelled at a realistic current rate rather than used to inflate the return. Power Different can help clients compare the available SEG options and dedicated commercial export agreements, and arrange the most appropriate route as part of the overall solar project.

That single fact shapes the entire strategy – and it’s why export should never be the headline of a solar proposal.

Are there limits on how much solar energy you can export?

Not necessarily.

Before a commercial solar system can export electricity to the grid, the local Distribution Network Operator (DNO) must approve the connection.

For smaller systems, this process is often relatively straightforward. For larger commercial installations, particularly those generating significant surplus electricity, export capacity can become an important constraint.

In some cases, the DNO may limit how much electricity can be exported at any one time.

In others, network upgrades may be required before larger export capacities can be approved.

This matters because export income only exists if electricity can actually leave your site.

A proposal that assumes significant export revenue without first considering DNO constraints may be overstating the opportunity.

It’s one reason Power Different assesses export capability, self-consumption and battery storage together. Sometimes the most valuable solution isn’t exporting more electricity. It’s finding ways to use more of it on-site or store it for later use.

Why self-consumption delivers more value than exporting

If exporting a unit earns you around 7p, but using that same unit on-site avoids buying electricity from the grid at a much higher rate, then every unit you can use yourself is worth far more than every unit you send to the grid.

This is the principle of self-consumption – and it’s the single biggest driver of return on a commercial solar investment.

A well-designed system is sized and modelled around your actual energy use, so that as much generation as possible is consumed on-site, where it displaces expensive grid electricity. Export becomes the sensible destination for genuine surplus – not the main event.

This is also where battery storage earns its place. A battery lets you capture surplus daytime generation and use it later – in the evening, overnight, or during peak-rate periods – instead of exporting it cheaply and buying it back expensively. For many businesses, storing a unit to use later is worth two or three times more than exporting it.

This is exactly why Power Different models self-consumption, export and storage together from the outset – because the right balance between them is what determines your real return, and it’s different for every site.

How do different system types impact returns from solar exports?

Whether export is a meaningful part of your numbers depends a lot on your site.

A rooftop solar system on a business with strong, consistent daytime demand may export relatively little – most of what it generates gets used on-site, which is exactly what you want. A larger ground-mounted system, or a site with significant quiet periods, may generate more surplus and therefore see export income play a bigger role.

There’s no single right answer – which is the whole point. Export income should be modelled around your specific site and consumption pattern, not assumed from a generic average. It’s why every Power Different feasibility model is built around your actual half-hourly consumption data – so the export figure reflects your site, not a generic assumption.

How to qualify for commercial solar export payments

To receive export payments, your system needs to meet a few straightforward requirements:

– A suitably certified, compliant installation – for SEG applications up to 50kWp, this means MCS certification or equivalent. Above 50kWp, MCS certification is not required, but the installation must still comply with relevant electrical standards, DNO requirements, Building Regulations and applicable legislation.

– An export meter – capable of measuring what you send back to the grid.

– An export agreement – either an SEG tariff where appropriate or a dedicated commercial export contract.

Ofgem publishes full guidance for generators covering eligibility and the application process.

Your export supplier doesn’t necessarily have to be the same company that supplies your electricity, so it is worth comparing both the rate and the contract terms. Power Different can help with that process as part of the project.

How solar funding impacts export income

How you fund your solar system also affects who benefits from export income.

If you own the system outright – or through asset finance – the export payments are yours. If you’re on a Power Purchase Agreement, the arrangement around exported energy will depend on the contract terms, so it’s worth understanding exactly how surplus is treated before you sign. Either way, it’s a question worth raising when you look at your funding options.

It’s also worth noting that for commercial businesses, SEG income is generally treated as taxable trading income, unlike domestic export payments. The GOV.UK guidance on business income is a useful starting point, but your accountant will be able to advise on your specific position.

What realistic export figures should look like in a solar proposal

Solar export payments are a genuine and welcome part of the return on a commercial solar system. But they should be presented honestly – as a modest, well-modelled income stream, not an inflated headline figure designed to make the numbers look better than they are.

When you’re reviewing a proposal, a few sensible questions will tell you whether export has been handled properly:

– Has the export figure been based on your actual consumption data, or a generic estimate?

– Does the proposal prioritise self-consumption over export?

– Has battery storage been considered as a way to reduce low-value export?

– Is the export rate quoted realistic and current – and is the proposal clear about whether it assumes an SEG tariff or a dedicated commercial export agreement?

If the answers are clear and grounded, that’s a good sign. If the proposal leans heavily on export income to make the return look attractive, treat it with caution. An honest proposal treats export as a modest, well-evidenced part of the picture. It’s the approach Power Different takes as standard – export modelled realistically, self-consumption prioritised, and no inflated figures used to make a return look better than it is.

Putting solar export income into perspective

Export payments are one piece of a much bigger puzzle – and like every other number in a solar proposal, they’re only useful if they’re honest.

Power Different is an engineering-led, MCS accredited commercial solar installer working with businesses across the UK. Rather than starting with your roof, our team starts with your bills and your data – modelling self-consumption, export and storage around how your site actually operates, so the numbers you see are the numbers you’ll get. You can explore completed projects to see that approach in action, or use the solar panel calculator to get an initial sense of what solar could do for your business.

Want to know what the numbers really look like for your site?

Export payments, self-consumption, funding, degradation – there’s a lot to weigh up, and most solar proposals only show you the flattering parts.

Our free guide, Does Your Solar ROI Sound Too Good To Be True?, walks you through exactly what an honest solar proposal should include – and gives you a checklist of questions to ask before you commit to anything.

[Download your free copy here] – and make your next solar decision with confidence.

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Power Different designs and delivers engineered commercial solar and battery storage systems for businesses that need reliable performance and clear financial outcomes.

We don’t do rough estimates or off-the-shelf designs. Every system is built around your actual energy data, giving you accurate costs, savings and return on investment before you commit.

Our engineering-led approach means higher quality, better performance and systems built to last – because in solar, the detail is what makes the difference between a strong return and an expensive mistake.

From feasibility through to installation and ongoing support, we manage the entire process, whether you are looking for commercial rooftop solar, ground-mounted solar, battery energy storage solutions or an upgrade to your existing solar.

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Frequently Asked Questions

1. What is the Smart Export Guarantee (SEG)?

The Smart Export Guarantee is a government-backed scheme launched in 2020 that requires larger UK energy suppliers to offer at least one compliant export tariff for eligible small-scale low-carbon generation. Suppliers set their own rates, contract lengths and other terms, so the amount paid can change between products and over time. SEG remains an option for commercial solar, but larger commercial installations more commonly use dedicated export agreements. Power Different can help identify the most appropriate route for each project.

2. How much do UK businesses actually earn from solar export payments?

Historically, some commercial SEG tariffs paid around 15p/kWh, but many of these were variable and recent market changes have reduced a number of rates significantly. Businesses should not assume 15p/kWh is routinely available. For larger commercial systems, dedicated commercial export contracts are generally the more common route. These are typically fixed for 12-24 months and, at the time of writing, rates are generally around 6-8p/kWh, depending on supplier, market conditions and contract terms. Power Different models export realistically against your specific site and can help arrange the appropriate export agreement.

3. Why is self-consumption worth more than export?

Because export rates are almost always lower than the value of using the electricity on-site. If export earns around 7p/kWh while using that unit avoids buying electricity from the grid at a much higher rate, self-consumption delivers more value. That is why self-consumption remains the main driver of return on a commercial solar investment, with export income treated as a useful secondary revenue stream.

4. What’s the difference between SEG and a dedicated commercial export agreement?

SEG is the government-backed framework under which participating suppliers offer export tariffs, with each supplier setting its own rate and terms. Many commercial SEG products have been variable, so the rate can change. Dedicated commercial export agreements are negotiated specifically for business generation and have been used for many years, particularly on larger installations. They are typically fixed for 12-24 months, providing greater certainty over export income. Power Different can assess which route is more appropriate for your project.

5. Do I have to use the same supplier for my export tariff and my electricity?

No – your export provider doesn’t necessarily have to be the same company that supplies your electricity. Some SEG products may offer different rates or eligibility depending on your import arrangement, while dedicated commercial export contracts have their own terms. It is worth comparing the whole agreement, not just the headline pence-per-kWh rate. Power Different can help clients compare the available options.

6. What do I need to qualify for solar export payments?

Requirements depend on the export route. For solar PV systems up to 50kWp applying for SEG, you will normally need MCS certification or an equivalent recognised certification, together with suitable export metering and an agreement with an SEG licensee. Above 50kWp, MCS certification is not required; the SEG licensee has discretion over how it satisfies itself that the installation is suitably certified. Dedicated commercial export agreements have their own metering and contract requirements. In every case, the installation must comply with the relevant electrical standards, DNO requirements, Building Regulations and applicable legislation, and your DNO will need to approve the grid connection and any export limit.

7. Is there a limit on how much electricity I can export?

Yes – there’s a 5MW capacity limit for systems eligible for the SEG. There can also be practical limits set by your local Distribution Network Operator (DNO), particularly for larger commercial systems. In some cases, network upgrades may be needed before a higher export capacity is approved. Power Different assesses DNO constraints at the feasibility stage so you’re not relying on export figures that can’t actually be delivered.

8. Is battery storage worth it if I’m earning from export?

Often, yes – because storing a unit to use later is usually worth two or three times more than exporting it. A battery lets you capture surplus daytime generation and use it in the evening, overnight or during peak-rate periods, instead of exporting it cheaply and buying it back expensively. Power Different models battery storage against your real consumption data to determine whether it genuinely adds value for your business.

9. How often will I get paid for my exported electricity?

That depends on your supplier. Some pay quarterly, some monthly, and some annually with the option to request more frequent payments. Payment is made by bank transfer based on your export meter readings. Larger commercial sites with half-hourly metering will see payments based on actual exported units rather than estimated figures.

10. Are solar export payments taxable for businesses?

Generally, yes. For commercial businesses, SEG income is treated as taxable trading income, unlike domestic export payments which are usually tax-free. If your business is VAT registered, VAT will normally be added to your export payment. The GOV.UK guidance on business income is a useful starting point, but your accountant will be able to advise on your specific position.

11. Can I claim both Feed-in Tariff and SEG payments at the same time?

No – you can only claim one. If your business is currently receiving Feed-in Tariff export payments, you’d need to opt out of FiT export before joining the SEG scheme. Your FiT generation payments would continue. Switching is permanent in some cases, so it’s worth modelling both options carefully before making a change.

12. Can I change my export provider or agreement if I find a better rate?

Usually, yes – but it depends on the terms of your current agreement. SEG tariffs can change or be switched subject to supplier terms, while dedicated commercial export contracts are commonly fixed for 12-24 months. It is sensible to review the market before renewal rather than assume today’s rate will remain available indefinitely. Power Different can support that review and help arrange the next agreement where required.

13. Will my solar proposal include realistic export figures?

It should – but not all do. A trustworthy proposal will base export figures on your actual half-hourly consumption data, prioritise self-consumption, factor in battery storage where relevant, and use a realistic current export rate. It should also make clear whether the model assumes an SEG tariff or a dedicated commercial export agreement, including the contract term where relevant. If a proposal leans heavily on export income to make the return look attractive, treat it with caution. Power Different models export as a well-evidenced part of the picture – never the headline.

14. Does Power Different help businesses choose and arrange the right export agreement?

Yes. Power Different can help clients compare the commercial export options available for their project, including SEG tariffs where appropriate and dedicated commercial export agreements. The team can support the selection and arrangement of the most suitable route, taking account of system size, expected export volumes, supplier terms and current market rates. It is part of making sure the financial model reflects how the project will actually operate.

15. Why should I choose Power Different for commercial solar?

Because we start with your bills, not your roof. Power Different is an engineering-led, MCS accredited commercial solar installer that has invested heavily in financial feasibility modelling – so the numbers we give you are built on real data, not optimistic assumptions. We model self-consumption, export and battery storage together to find the right balance for your site. You can read more about our approach or browse our completed projects.