Should you store solar energy or sell it back to the grid? Discover the pros and cons of battery storage vs Smart Export Guarantee (SEG) in the UK.
Battery Storage vs Grid Export – Which Saves You More?
Once your solar panels are installed, you’ll start generating clean electricity — but what happens to the energy you don’t use? You have two main options: store it in a battery or export it to the grid under the Smart Export Guarantee (SEG). Let’s compare the two to help you decide which offers better savings.
⚡ Option 1: Battery Storage
How it works:
A solar battery stores excess electricity generated during the day so you can use it later — especially in the evening when your panels aren’t producing.
Benefits:
- Maximises self-consumption: Use more of your own energy
- Reduces reliance on the grid
- Protects against rising energy prices
- Can provide backup power during outages
Costs:
- Battery systems typically cost £3,000–£6,000
- Lifespan: 10–15 years
- May require additional inverter or hybrid system
Savings potential:
Homeowners with battery storage can use up to 80% of their solar energy, compared to 30–50% without.
🔁 Option 2: Smart Export Guarantee (SEG)
How it works:
SEG pays you for the electricity your solar panels export to the grid. Rates vary by supplier and are paid per kilowatt-hour (kWh).
Benefits:
- Earn passive income from unused energy
- No upfront battery cost
- Simple setup with MCS-certified installer
Typical SEG rates:
- Range from 2p to 15p per kWh
- Some suppliers offer fixed or variable tariffs
Savings potential:
SEG earnings typically range from £50 to £150/year, depending on system size and export volume.
🧮 Which Option Saves More?
| Feature | Battery Storage | SEG |
|---|---|---|
| Upfront Cost | £3,000–£6,000 | £0 |
| Energy Independence | High | Low |
| Annual Savings | £300–£600 | £50–£150 |
| Payback Period | 8–12 years | Immediate earnings |
Verdict:
- If you want maximum energy independence and long-term savings, battery storage is the better option.
- If you prefer lower upfront costs and passive income, SEG is a great starting point.
✅ Final Thoughts
Both battery storage and grid export offer valuable benefits — and many UK homeowners choose to combine both. Start with SEG, and consider adding a battery later as prices fall and technology improves.
👉 Want to explore solar + battery options? Visit our How & Why guide or contact Smart Energy for a tailored quote. Our upcoming Solar ROI Calculator can help you compare both options.