Search "net metering UK" and you'll find plenty of confused answers, because the UK doesn't technically have net metering at all. What it has is called the Smart Export Guarantee, or SEG, and understanding the difference matters if you're trying to work out what your solar panels will actually earn you.
What SEG Actually Is
SEG launched on 1 January 2020, replacing the old Feed-in Tariff, which closed to new applicants back in March 2019. Under the Feed-in Tariff, you got paid for every kWh your panels generated, whether you used it or not. SEG works differently: it only pays for the electricity that actually flows back out to the grid, measured through a smart meter capable of half-hourly readings.
Every licensed electricity supplier with more than 150,000 customers has to offer at least one SEG tariff. Beyond that requirement, suppliers set their own rates and compete for your export, which is exactly why "how much do I get paid" doesn't have one simple answer in the UK the way it might elsewhere.
Why the Rate You Get Varies So Much
This is the part that catches a lot of people off guard. SEG rates in 2026 range from around 3p per kWh on the weakest tariffs up to over 20p per kWh on the strongest ones, and some time-of-use tariffs pay considerably more during specific peak windows. Two households with identical solar systems can end up hundreds of pounds apart per year, purely based on which tariff they picked.
A typical 3.5kWp system exporting around 1,500 kWh a year might earn roughly £45 on a poor tariff, or £300+ on a strong one. That's not a rounding difference, it's the gap between a decent return and a mediocre one on the exact same hardware.
Fixed vs Variable Tariffs
Most SEG tariffs fall into two categories. Fixed-rate tariffs pay a flat rate per kWh regardless of when you export, typically landing somewhere between 4p and 16p. Variable, time-of-use tariffs track wholesale pricing or peak demand windows, and can pay considerably more, sometimes 25p or higher, during specific hours, usually early evening.
Variable tariffs tend to reward households with battery storage the most, since a battery lets you hold back exported power until the highest-paying window instead of sending it out automatically whenever it's generated.
Two Things That Trip People Up
You don't have to buy your electricity from the same supplier you export to, though several suppliers' best rates do require bundling both. It's worth checking whether a standalone export tariff beats a bundled one before assuming you have to switch everything.
You also need an MCS-certified installation and an export-capable smart meter to qualify at all. Without both, you're not eligible for SEG regardless of how well your system performs.
What This Means for Your System
Because SEG rates sit well below typical UK electricity prices, using your own solar power directly is almost always worth more than exporting it and buying it back later. This makes the case for battery storage and self-consumption planning considerably stronger in the UK than it would be under a full 1:1 net metering model.
For UK-specific comparisons, current SEG rates by supplier, and how this affects payback: 👉 https://solarbazaar.io/uk/comparisons/net-metering
Want to see what a UK system could realistically earn under current rates? 👉 https://solarbazaar.io/
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