How can I get the most from solar panels and a home battery?
Use as much solar electricity as practical when the panels are generating, then compare battery storage with the income available from exporting surplus power. Ofgem’s Smart Export Guarantee provides payments for eligible exports, but suppliers set their own rates and terms.
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Check your system’s generation and export data, then compare SEG tariffs before changing how you use or store surplus electricity.
Check the Smart Export Guarantee rulesThe best use of solar is often to use your own generation before exporting it
Once a solar PV system is installed, the value comes from managing when electricity is used as well as from the panels themselves. Your inverter measures generation, your home consumes some of it, and any surplus can be exported. The Smart Export Guarantee (SEG) requires eligible suppliers to offer export tariffs, but each supplier sets its own rate and contract terms.
That makes the household’s first decision practical: which loads can be moved into sunny hours without making life awkward? A dishwasher, washing machine, immersion heater or EV charger may be shifted when the array is producing, while essential overnight demand can still come from the grid or a battery.
Know what your system is actually producing
Use the inverter or monitoring app to compare generation with household demand. A south-facing summer day may produce much more electricity than the house needs, while a winter afternoon can produce far less. The annual generation figure on the installer’s paperwork is not a guarantee for any individual day.
Do not judge performance from the export meter alone. A high export number can mean the system is generating well but the household is using very little of that energy; conversely, lower exports can simply indicate that more solar was consumed on site.
How the Smart Export Guarantee fits in
Ofgem says the SEG covers small-scale low-carbon generation including solar PV in Great Britain, with eligible installations up to 5MW. Suppliers that are SEG licensees determine the export rate, contract length and other terms. Ofgem’s 2026/27 supplier list shows the mandatory and voluntary SEG licensees for the year beginning 1 April 2026.
- check that the installation meets SEG eligibility requirements
- choose an export tariff rather than assuming your electricity supplier automatically pays the best rate
- keep the generation and export meter details requested by the chosen SEG licensee
- compare the export rate with the value of using an extra unit of solar yourself
When a battery can help
A battery is mainly useful when generation and demand occur at different times. It can store some daytime surplus for evening use, reducing later grid imports. That does not make every battery installation financially attractive: the calculation depends on the battery cost, usable capacity, round-trip losses, warranty, export rate and the household’s demand profile.
A battery can also change the best export strategy. If you are paid a competitive export rate, deliberately exporting all spare generation may sometimes be better than cycling the battery for a small saving. The correct comparison is the value of one unit exported versus the value of one unit avoided later, after storage losses are included.
How to assess "free solar" offers
A company advertising "free solar" may be offering finance, a lease, an assignment of benefits or another commercial arrangement rather than donating a system. Read who owns the panels, who receives export income, who repairs the equipment, what happens when you sell the home and whether the contract has exit charges.
Solar can still work for a low-use home, but payback changes
A home with low daytime electricity use can export more generation, so its economics depend more heavily on the export tariff. Conversely, a household that can shift substantial demand into daylight hours may get more value from each generated unit without adding another piece of equipment.
A sensible first-year review
- calculate annual generation and annual on-site consumption separately
- record exported kWh and SEG payments
- list the major daytime loads you moved into solar hours
- check whether the battery is charging and discharging as expected
- revisit the tariff when your export contract or electricity deal ends
Worked example
Worked example: Ofgem’s SEG rules allow eligible solar PV installations in Great Britain to receive payment for exported electricity, with the exact rate set by the licensee. Suppose a household exports 1,800 kWh in its first SEG year at an illustrative 8 pence per kWh, while using 1,200 kWh of solar generation directly at an illustrative avoided grid cost of 25 pence per kWh.
- Export income: 1,800 × £0.08 = £144.
- Value of direct use: 1,200 × £0.25 = £300.
- Combined illustrative value: £444.
The rates in this example are explicitly illustrative; the real SEG tariff and household electricity price must be checked for the relevant contract.
For example, if a household exports 2,400 kWh during a year and its SEG tariff pays 5p per kWh, the export payments would be about £120: 2,400 × £0.05 = £120. A different tariff at 8p would produce £192, showing why checking the actual export rate matters alongside the value of using the electricity at home.
How do I maximise the value of solar panels?#
Start by matching flexible electricity use to the hours when the PV system is generating. Then compare the value of using one extra unit yourself with the export tariff you would receive for sending that unit to the grid.
Is a home battery worth it with solar panels?#
A battery can shift solar generation from daytime to evening, but the economics depend on battery cost, usable capacity, losses, warranty and tariffs. Compare the value of avoided grid imports with the income you give up by not exporting that electricity.
What is the Smart Export Guarantee?#
The SEG is a government-backed scheme requiring certain electricity suppliers to pay eligible small-scale generators for electricity exported to the grid. The supplier sets the tariff rate and contract details rather than Ofgem fixing one universal payment.
Are free solar panel offers really free?#
Treat the word “free” as a description that needs unpacking. The deal may involve ownership, finance, leasing, assigned export income or maintenance obligations, so check who owns the equipment and what happens when you move home.
Can solar panels save money if I use little electricity?#
Yes, but a low-use household may export a larger share of its generation. That makes the export tariff more important, whereas a high daytime load can capture more of the generation without conversion to grid electricity.
Should I export solar power or use it myself?#
Compare the export payment per kilowatt-hour with the retail electricity cost avoided by using that generation at home. A battery complicates the comparison because charging and discharging lose some energy.
How do I check whether a solar installer is legitimate?#
Check the contract, ownership terms, warranty, electrical certification and any relevant certification or accreditation claimed by the installer. Do not rely solely on a headline saving calculation supplied during the sales visit.
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Sources
General information, not personal financial advice. Rules depend on your circumstances; check the official source or speak to a regulated adviser before acting.