FiT vs SEG: Should UK Solar Panel Owners Switch Export Payments?

Thousands of UK homeowners still receive Feed-in Tariff payments from solar panels installed before the scheme closed to new applicants in 2019.

As more electricity suppliers offer Smart Export Guarantee tariffs, many existing solar owners are asking the same question: would switching increase the value of the electricity they export?

In reality, the decision is rarely that straightforward. Your existing FiT agreement may include both generation and export payments, and changing how you're paid isn't always in your financial interests. For many legacy solar owners, remaining on their current agreement continues to provide the better overall return.

From our experience, homeowners often focus on the advertised export rate under an SEG tariff. However, the more useful comparison is the total annual value of your existing FiT payments against what you could realistically earn through an SEG tariff based on how much electricity you actually export.

This guide explains the key differences between FiT and SEG, the questions existing FiT customers should ask before making any changes, and the situations where reviewing your export payments may be worthwhile.

What is the difference between FiT and SEG?

If you're already receiving Feed-in Tariff payments, the biggest difference is how each scheme rewards the electricity your solar panels generate.

The Feed-in Tariff (FiT) was introduced to encourage the adoption of small-scale renewable energy systems. Although the scheme closed to new applicants in 2019, eligible installations continue to receive payments under their original agreements for the remainder of their accreditation period.

Depending on your installation and agreement, FiT payments may include both a payment for the electricity your system generates and a payment relating to electricity exported to the grid.

The Smart Export Guarantee (SEG) works differently. Rather than paying for electricity generated, SEG suppliers pay eligible homeowners for the electricity they export. Export tariffs are set by individual suppliers, so rates and eligibility requirements can vary.

For existing FiT customers, the decision is therefore about much more than comparing two export rates. It's about understanding how your current agreement works and whether changing it would improve your overall return.

Can you receive FiT and SEG at the same time?

This is one of the questions existing FiT customers ask most often, and the answer depends on your individual circumstances.

Whether you can receive both FiT and SEG payments depends on factors such as your original FiT agreement, your metering arrangements and the type of export payments you currently receive.

Because these arrangements can differ between households, it's important to understand exactly how your existing payments work before making any changes. Moving away from parts of your FiT agreement may affect your future payments, and returning to your previous arrangement may not be possible.

Before agreeing to an SEG tariff, check the terms of your existing FiT agreement and speak to your FiT licensee or prospective SEG supplier if you're unsure how your payments could be affected.

Should you switch from FiT to SEG?

For many legacy FiT customers, switching won't automatically increase their overall income.

That's because the value of your existing agreement isn't determined by export payments alone. Generation payments, export payments and the amount of electricity your system produces all contribute to the total financial benefit you receive.

From our experience, the homeowners most likely to benefit are those who compare their total annual return rather than focusing solely on a higher export tariff.

You may be better off staying on FiT if:

• You're happy with your existing payments.

• Your current agreement continues to provide a strong overall return.

• You're unsure how switching could affect your existing entitlement.

It may be worth reviewing SEG if:

• You've significantly changed how you use your solar electricity.

• You're now exporting much more electricity than before.

• You're reviewing your energy strategy after installing battery storage.

• You're comparing electricity suppliers and available export tariffs.

The most important step is to compare the total value of your existing FiT agreement with what you could realistically receive under an SEG tariff based on your actual export levels, rather than assuming a higher export rate will automatically leave you better off.

What should you check before leaving FiT?

Before comparing SEG tariffs, it's important to understand exactly how your existing Feed-in Tariff agreement works.

From our experience, many homeowners haven't reviewed their FiT payments for years. As a result, it's easy to focus on a higher advertised export rate without considering the overall value of the agreement already in place.

Before making any changes, ask yourself:

• Do you currently receive both generation and export payments?

• How much electricity do you actually export over a typical year?

• Would moving to an SEG tariff increase your total annual return, rather than just your export rate?

• Have you checked whether changing your export payments could affect your existing FiT agreement?

• Are you planning to add battery storage or make other changes to your solar system?

Taking the time to compare your current income with what you could realistically earn under an SEG tariff will usually lead to a more informed decision than comparing headline rates alone.

Before changing your FiT agreement

Check:

• Your current generation payments.

• Your export payment arrangements.

• How much electricity you export each year.

• Whether future upgrades could change your export levels.

• Whether changing your agreement could affect future payments.

How battery storage can influence the decision

Battery storage has changed how many homeowners use the electricity generated by their solar panels.

Instead of exporting surplus electricity immediately, a battery allows you to store more of it for use later in the day. This can reduce the amount of electricity exported to the grid, making it sensible to review your overall solar strategy rather than focusing solely on export payments.

For some legacy FiT customers, installing battery storage is a good opportunity to reassess whether their existing arrangements still suit the way they use their system. The key is to consider your generation, self-consumption and export together rather than viewing each in isolation.

Common mistakes when comparing FiT and SEG

Switching export payments is an important financial decision, but it's easy to become distracted by headline tariff rates.

From our experience, homeowners are often drawn to the highest advertised SEG payment without first calculating how much electricity they actually export over a typical year. In many cases, the difference in annual income is smaller than expected because export volumes vary significantly between households.

Other common mistakes include:

• Comparing export rates instead of total annual payments.

• Assuming a higher SEG tariff automatically delivers a better return.

• Making changes before understanding an existing FiT agreement.

• Overlooking how battery storage or changing energy use could affect future exports.

Looking at your generation payments, export income and household electricity use together provides a much clearer picture of which option is likely to deliver the better long-term outcome.

Is switching from FiT to SEG worth it?

There's no single answer because every FiT agreement is different.

For many existing FiT customers, remaining on their current agreement may continue to provide the better overall financial outcome. However, if your electricity usage has changed significantly, you've installed battery storage or you're exporting considerably more electricity than when your FiT agreement began, reviewing your options could be worthwhile.

The most useful comparison isn't simply between two export tariffs. It's whether switching would improve your total annual return after considering your generation payments, export income and how much of your own solar electricity you use within the home.

Final advice

For many homeowners, the value of an existing Feed-in Tariff agreement extends well beyond the export tariff alone.

Before making any changes, understand how your current agreement works, review your annual generation and export payments, and consider how future plans, such as adding battery storage, could affect the way your solar electricity is used.

If you're upgrading your solar system or exploring battery storage, iHeat can help you understand how modern solar technology fits into your home's energy needs, allowing you to make an informed decision based on your individual circumstances rather than headline tariff rates alone.

[crta_solar]