What happens to the electricity I produce from solar and don't use in the house?

The Smart Export Guarantee: Understanding Compensation for Solar Exports

Any electricity that is generated from a Solar P.V. system that isn’t used in the house or used to charge the battery (because it is already full), is exported back to the grid. In reality, it actually just goes into your neighbours house, because electricity is attracted to wherever it is required, so if your neighbour had a requirement then it will go there. That’s right, your generated energy will be going to your neighbour and their energy company will be charging them for it.

Energy generated from solar panels, that you don't use goes to your neighbours.

Taking Control of Your Energy and reducing what you export

Minimising exported electricity is key to managing bills effectively. In the past, before battery technology with a Solar P.V. system was more mainstream, some homeowners exported a significant amount of their energy (sometimes over 70% of their generated energy). Fortunately, recent advancements in battery technology and the significant drop in prices have transformed this scenario, enabling the capture and utilisation of most generated energy within your household.

Maximizing Self-Consumption: Smart Energy Usage

Maximising self-consumption of generated energy involves adopting sensible energy usage practices. While it requires adjusting your energy usage habits and planning your days differently, the learning curve is minimal, and adaptation happens swiftly.

For instance, in the UK during sunny summer months, when the days are brighter and long, your battery might reach full charge by 11 am. At this point, aligning activities like running the washing machine, dishwasher, or charging an electric car becomes advantageous. Certain EV charging solutions intelligently determine the optimal vehicle charging times.

The Smart Export Guarantee (SEG): Financial Compensation for Exports

In the UK, the Smart Export Guarantee (SEG) compensates homeowners for exported electricity. Typically facilitated by your energy provider, you can opt for a different company if preferred. Although obliged to offer SEG (except for smaller providers with less than 250,000 customers), energy companies can set the price they're willing to pay, provided it meets legal minimums.

Know the SEG rates

As of 2023, the prevailing rate stands around 5.5p per kWh, while your cost per unit remains approximately 28p. This substantial difference underscores the importance of using as much self-generated energy as possible, limiting excess exports for optimal financial benefits.

Reduce your export as much as you can

In summary, whatever you generate and don’t use goes back to the grid, you are compensated for this export at approximately 5.5p per unit of electricity. When you consider that you buy your energy from the grid for 6 times this figure, it’s easy to see the logic that using as much of the energy you generate as you can in your home is the prudent way to maximise the financial benefit of your system.