SOLAR HOME SPECIALIST

Compare Energy Tariffs for Solar Homes (UK Guide 2026)

Installing solar panels changes the way your home interacts with the electricity grid. You no longer just consume energy — you also generate it. That single change means standard energy tariffs are structurally unsuitable for solar households.

Last updated: January 2026
Regulator: Ofgem
UK homeowners with solar panels (with or without batteries)

What an Energy Tariff Actually Is (Explained Simply)

An energy tariff is the pricing framework that determines how you are charged and paid for electricity.

Import Pricing

What you pay when you take electricity from the grid

Export Pricing

What you receive when you send surplus electricity back to the grid

For homes without solar panels: Only import pricing really matters.

For solar homes: Import and export pricing are equally important.

How Solar Panels Change Your Electricity Usage Pattern

Solar panels do not reduce electricity usage evenly. They change when electricity is used and when it is exported.

  • Generate most electricity between late morning and mid-afternoon
  • Use less grid electricity during daylight hours
  • Import most grid electricity in the evening and overnight
  • Export surplus electricity when generation exceeds household demand

Solar homes benefit most from tariffs that:

  • ✓ Value daytime exports properly
  • ✓ Do not penalise low grid usage
  • ✓ Allow flexibility around timing

Many standard tariffs do none of these.

Standard Variable Tariffs

Usually Poor for Solar Homes

A standard variable tariff (SVT) is the default tariff most households are placed on. Prices can change at any time, and the same unit rate applies regardless of when electricity is used.

Problems for Solar Homes:

  • ❌ Electricity costs the same at all hours
  • ❌ No incentive to shift usage
  • ❌ Export payments are usually minimal
  • ❌ Fail to reward daytime generation

An SVT does not actively punish solar households, but it fails to unlock the value that solar panels create.

Energy Tariff Types for Solar Homes

Fixed-Rate Tariffs

Predictable but Limited

Lock in import price for 12-24 months. Offer price certainty but often have average export rates.

Best for: Solar homes without batteries, households prioritising stability over optimisation.

⚖️ Balanced Choice

Time-of-Use Tariffs

Excellent for Solar + Battery

Prices change by time of day. Cheaper overnight, higher during evening peak. Solar generation reduces daytime imports.

Requires: Smart meter, willingness to adapt usage patterns.

⭐ Solar Optimised

Smart Export Guarantee (SEG)

Backbone of Solar Tariffs

Pays households for exporting solar electricity. Rates vary widely between suppliers. Not price-capped.

Key: Higher import rate + strong export tariff can outperform cheap import-only deals.

💰 Essential for Solar

Standard Variable

Poor for Solar

Default tariff, same rate all hours. Export payments minimal. Only a temporary option for solar homes.

Verdict: Should only ever be a temporary option.

⚠️ Avoid Long-Term

Solar Homes with Batteries: Tariffs Become a Strategy

Once a battery is added, tariffs stop being passive pricing and become an active strategy.

The goal becomes:

  • Import electricity when it is cheapest
  • Store it in the battery
  • Use or export electricity when prices are highest

❌ Wrong tariff

Can make a battery underperform

✅ Right tariff

Can significantly increase returns

Battery-optimised tariffs usually:

  • Offer very low off-peak rates
  • Support half-hourly billing
  • Allow flexible export arrangements

Standing Charges: The Hidden Cost Solar Homes Often Miss

Standing charges are daily fees you pay regardless of usage.

Solar homes typically:

  • Import less electricity overall
  • Rely less on the grid

High standing charges therefore erode solar savings disproportionately.

When comparing tariffs, solar households should pay close attention to standing charges — sometimes more than unit rates.

Common Solar Tariff Mistakes

Many solar households lose money by:

  • ❌ Staying on default export rates
  • ❌ Ignoring standing charges
  • ❌ Choosing tariffs designed for non-solar homes
  • ❌ Using time-of-use tariffs without adjusting habits
  • ❌ Never re-comparing after installing batteries

Solar panels do not guarantee savings. Tariff alignment does.

Smart Export Guarantee (SEG): The Backbone of Solar Tariffs

The Smart Export Guarantee (SEG) is the system that pays households for exporting solar electricity to the grid.

Key Points:

  • Large suppliers must offer at least one SEG tariff
  • Rates vary widely between suppliers
  • Export rates are not price-capped

For solar homes:

  • Offset import costs
  • Shorten payback periods
  • Increase total annual savings materially

💡 A slightly higher import rate paired with a strong export tariff can outperform a "cheap" import-only deal.

How to Compare Energy Tariffs for Solar Homes Correctly

📊 Base Your Comparison On:

  • Annual import (kWh)
  • Annual export (kWh)
  • Presence of a battery
  • Typical usage times

🧮 Calculate:

  • Total annual cost
  • Total export earnings
  • Net energy spend

UtilityKing compares tariffs using solar-specific outcomes, not generic household averages.

£150-£400
Extra savings with optimised solar tariff
3-5x
Higher export rates possible with SEG
62%
Of solar homes on wrong tariff type
2.5yrs
Faster payback with right tariff

FAQs: Energy Tariffs for Solar Homes

Do solar panels limit which suppliers I can switch to?

No. You can switch suppliers freely, though export agreements may need to be updated.

Do I need a smart meter for solar tariffs?

Only for time-of-use tariffs. Export tariffs can work without one, but smart meters improve accuracy.

Are SEG payments taxable?

For most households, SEG income is tax-free.

Is a battery worth it without the right tariff?

No. Batteries deliver most value when paired with suitable time-based pricing.

Final Verdict: Solar Homes Must Compare Differently

In 2026, the biggest mistake solar households make is assuming that any "cheap" tariff will work.

Real savings come from:

  • ✓ Matching tariffs to generation patterns
  • ✓ Valuing exports properly
  • ✓ Minimising standing charges
  • ✓ Using time-based pricing intelligently
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