How to sell electricity back to the grid in the UK

You can sell electricity back to the grid in the UK in two main ways: through a Smart Export Guarantee (SEG) export tariff, or through flexibility services that reward assets for responding to the grid. The SEG pays for each unit you export. Flexibility services can pay for when and how your battery, heat pump, EV charger or business equipment changes its energy use.

Most people know about the SEG. It can be a useful starting point, but it is not the only way to get paid for energy assets. If you have equipment that can shift or store energy, you may also be able to take part in flexibility services alongside an export tariff.

What is the Smart Export Guarantee?

The Smart Export Guarantee is a scheme that requires eligible larger electricity suppliers to offer an export tariff to eligible small-scale generators in Great Britain. In practice, it means you can be paid for electricity your installation exports to the grid, provided you meet your supplier’s requirements. Ofgem’s SEG guidance explains the scheme and eligibility.

A SEG tariff usually pays a set amount for each kilowatt-hour (kWh) you export. Rates vary by supplier and tariff, and may be fixed or time-varying. Check the supplier’s latest terms before choosing.

The key point is that you’re paid for exported electricity, not the energy you use in your home or business. If your solar panels generate power and you use it on site, that can save you from buying electricity, but it won’t count as a SEG export payment.

The SEG is simple, but limited: a fixed-rate tariff can pay the same amount whether the grid needs electricity at that moment or has plenty available. A time-of-use export tariff may pay different rates at different times, but it still primarily rewards exported units.

How grid balancing and flexibility services work

The electricity system has to match supply and demand continuously. The National Energy System Operator (NESO) works to balance Great Britain’s electricity system, while local network operators may also procure flexibility to help manage constraints in their areas.

A flexible energy asset can help by changing how much electricity it imports, exports or stores, and when it does so. Depending on the service and how you participate, payments may relate to availability, a change in energy use, or a specific response when called. That’s different from a standard SEG tariff, which pays per exported kWh.

Examples of flexibility include:

• Demand flexibility or demand-side response (DSR): shifting consumption away from busy periods or responding to a request to reduce demand.
• Frequency response: adjusting an asset’s behaviour rapidly to help keep the electricity system’s frequency stable, where the asset and control setup are suitable.
• Battery dispatch and arbitrage: charging when electricity is cheaper or there is surplus supply, then discharging or exporting when prices or system value are higher.
• Capacity Market participation: in some cases, providing reliable availability during periods of system stress. This has its own qualification and delivery requirements.

NESO’s Demand Flexibility Service information describes one route for flexible demand. Not every service is open to every asset or household directly. Eligibility, minimum sizes, metering, location and technical requirements differ, so smaller assets often take part through an aggregator or platform.

How it can work with an aggregator like INERTIA

An aggregator brings together flexible assets and helps connect them to suitable energy services. Instead of monitoring market signals and adjusting your equipment yourself, you agree how your assets can be operated and the platform manages eligible responses.

In practice, this can mean:

1. Your asset is assessed. Its size, control options, location and operating needs help determine which services may be suitable.
2. A platform monitors opportunities. INERTIA uses AI-driven 24/7 grid monitoring to identify opportunities across balancing and energy markets.
3. Your equipment responds automatically. Where agreed and technically supported, a battery, EV charger, heat pump or commercial system can adjust its operation.
4. You receive a share of the revenue. With INERTIA, revenue is paid monthly and you keep the majority, with a fixed, transparent platform fee.

The aim is to make flexibility work around the way you need to use your property or business, not to leave you managing energy markets yourself. What services are available and what they pay will depend on your assets and the relevant market arrangements.

SEG export tariff vs grid balancing revenue

	SEG export tariff	Grid balancing and flexibility revenue
What you’re paid for	Metered electricity exported to the grid	Flexibility: for example, changing when or how your assets import, export or store energy
Typical payer or route	Your electricity supplier	An aggregator, market participant, NESO service or network operator, depending on the service
How often	Usually calculated from metered exports and paid according to your supplier’s terms	Varies by service; an aggregator may combine market activity and pay you periodically
Effort required	Apply for a tariff and meet the supplier’s requirements	Usually requires compatible controls and a platform or aggregator to manage participation
Who it suits	Eligible generators, particularly those with surplus electricity to export	Owners of batteries and other controllable or flexible assets, including commercial equipment

What else can flexibility add?

A basic export tariff is only one part of the value your energy assets may provide. Flexible assets can get paid for responding to market needs, shifting energy use, or storing and releasing energy at different times. What’s available depends on the asset and the opportunities it can access.

It is often possible to keep a SEG tariff for eligible exports and add flexibility services on top. Whether you can combine them depends on the tariff, equipment, market rules and any contract terms. Check these carefully, especially if you have a battery that can charge from the grid and later export.

What participation depends on

A sensible estimate needs to account for:

• Asset size and capability: how much power it can shift or provide, and for how long.
• Available flexibility: what you can change without disrupting your home or business.
• Location: local network needs and market opportunities can vary.
• Controls and metering: whether your equipment can be monitored and controlled remotely, and meets the relevant technical requirements.
• Operating costs and limits: for example, battery wear, system efficiency, and how often an asset can respond.

Examples, not forecasts: a home battery may shift stored electricity to a more useful time; a cold store may have some flexibility in when refrigeration runs; and a warehouse with HVAC may be able to adjust heating or cooling within agreed comfort and operational limits. Each case needs an assessment, and any payments depend on the service, the asset and the market at the time.

Frequently asked questions

Can I sell electricity back to the grid without solar panels?

Yes, in some cases. The SEG is for eligible generation, but flexibility services can involve changing electricity use rather than generating it. A battery, EV charger, heat pump or commercial equipment may be suitable for certain services, subject to technical and market requirements.

Do I need a battery?

No. A battery can offer useful flexibility because it stores energy for later, but it isn’t essential for every service. Controllable demand (such as EV charging, heating, cooling or refrigeration) may also be able to shift when it uses electricity.

Is it safe, and will it affect my heating or comfort?

A properly configured service should operate within agreed limits. Before joining, check what control is permitted, how overrides work and any comfort or operating safeguards. You should understand the settings and remain in control of essential needs.

Do I need to switch electricity supplier?

Not necessarily. SEG tariffs and flexibility services are separate arrangements, although some export tariffs have supplier, installer or import-tariff conditions. Check your existing contract and the terms of any proposed service before making a change.

How do I get started?

Gather details of your equipment (such as its type, capacity, manufacturer and control system) and check what metering is installed. Then ask a provider to assess eligibility, likely service options, fees and operating conditions. You can find out about the INERTIA programme or contact us to tell us about your assets.

Turn flexible energy into an opportunity

The SEG can pay you for surplus electricity, but it may not capture the full value of a flexible battery, heat pump, EV charger or business system. Grid services offer another route: getting paid for the useful role your assets can play in balancing supply and demand.

If you’re considering how to sell electricity back to the grid, or how flexibility could work alongside a solar export tariff, register your interest with INERTIA. Tell us what assets you have, and we can help you explore what may be suitable.