Ofgem and Solar Panels

What does Ofgem do for solar?

Ofgem (Office of Gas and Electricity Markets) affects your solar panels in three key ways: (1) SMART EXPORT GUARANTEE (SEG) — Ofgem mandates that licensed suppliers with 150,000+ customers must offer an export tariff. This is why you can earn 4-15p/kWh for surplus solar. (2) PRICE CAP — Ofgem sets the maximum electricity unit rate (currently 24.5p/kWh). Higher price cap = higher value of solar self-consumption = better solar ROI. (3) GRID CONNECTION — Ofgem regulates the Distribution Network Operators (DNOs) that approve your solar connection. Your installer handles DNO notification (G99). Ofgem does NOT: approve solar installations (that's MCS), set solar panel standards (that's IEC/BS), or provide grants (that's government).