The Feed-in Tariff (FiT): The Legacy Era

The Feed-in Tariff was the original UK solar payment scheme, and for many early adopters in Wales, it was extremely generous. It paid households for both generating electricity and exporting unused power back to the National Grid. Even if you consumed your own solar power, you were still paid for generating it.

2026 Status Update:

• Closed to new applicants: The scheme officially ended for new systems in April 2019.
• Grandfathered rights: Existing contracts remain fully active and will run for their original 20 to 25-year terms.
• The Reality: If a neighbour says they get paid high generation rates for their solar, they are on a legacy FiT contract.

The Smart Export Guarantee (SEG): The Modern Standard

If you install solar panels in Wales today, you will register under the Smart Export Guarantee (SEG). Unlike FiT, SEG is much simpler: you only get paid for the electricity you do not use and export back to the grid. There are no generation payments or incentives for self-use.

This shift is important because it changes how solar value is measured. Instead of being an income-based system, SEG is now mainly an export compensation mechanism.

Key Rules of SEG:

• • Supplier-Led: It is not a fixed government rate. Licensed energy suppliers set their own export tariffs. According to the official Ofgem SEG Supplier List, suppliers must offer a rate greater than zero.
  • Mandatory Requirements: To qualify, your solar system must be fitted by an MCS-certified installer, and your home must have a working smart meter to track half-hourly export data.

In simple terms: FiT is a legacy income scheme, while SEG is the only option for new solar installations in Wales today.

At-a-Glance: FiT vs SEG

Realistic Solar Earnings in Wales (2026)

Export rates vary significantly depending on the energy supplier and tariff type. Standard SEG tariffs typically range between 4p and 15p per kWh, although some variable or time-based tariffs may fluctuate depending on market conditions.

Most homeowners across regional Wales typically fall into these annual SEG payout ranges:

• Small System (2–3kW): £50 – £120 per year
• Average Home System (3–4kW): £100 – £300 per year
• Optimised System (Smart Usage + Battery Storage): £300+ per year

The Big Misconception:

SEG is not where your real savings come from anymore. Buying electricity from the grid is usually far more expensive than what suppliers pay you for exporting it. As highlighted in the Which? Solar analysis, the real financial benefit comes from self-consumption — using your own solar electricity directly instead of buying it from the grid.

Can You Use FiT and SEG at the Same Time?

No. You cannot use both schemes on the same solar panel system.

FiT is a locked, historic contract. If your system is on FiT, switching to SEG would cause you to forfeit your generation payments, which is financially disadvantageous. If you install a new solar array today, it automatically defaults to the SEG framework.

The Only Exception:

You can technically receive both only if you already have an older, legacy FiT system installed years ago PLUS a completely new, physically separate second solar array. These must be entirely separate installations with distinct wiring and independent export meters.

Is Solar Still Worth It in Wales for 2026?

Yes — but the financial logic has changed. Older solar systems were driven by subsidies and export income. Modern solar economics are now driven by energy savings and independence.

Instead of asking, “How much will I earn from exporting?”, the more important question is, “How much grid electricity can I avoid buying?”

This is especially relevant for homes across Carmarthenshire and rural Wales, where energy use is often higher and grid reliance is greater.

By pairing modern high-efficiency panels with home battery storage, you can store daytime generation and use it in the evening. This reduces exposure to peak electricity prices and improves long-term savings.

FAQ (Real Customer Questions)

Understand Your Solar Savings Before You Decide

If you are considering solar panels, the most important step is understanding how much electricity your system could realistically generate and save you over time.

That’s why every quote we provide includes a performance estimate based on your property, roof structure, and typical electricity usage. This gives you a clear picture of your potential return on investment before making any commitment.

Get in touch today to receive your personalised solar performance estimate for your home.

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