Beat the Energy Price Cap Increase: Invest in Solar PV
The energy price cap in the UK is set to increase by 10% from 1 October 2024, resulting in higher annual bills for households. This means that the average dual-fuel household paying by direct debit can expect to see their bills rise to an average price of £1,717 per year. The Price Cap applies to ‘default’ tariffs, or standard variable tariffs (SVT’s), which is around 85% of households due to the recent energy crisis.
The average unit rates for electricity will rise from 22.36p per kWh to 24.50p per kWh.
The increase is primarily due to rising wholesale energy prices, which have been influenced by various factors, including geopolitical events and increased demand. While this rise is lower than the record-breaking levels seen in previous years, it still represents a significant increase for many households struggling to cope with the rising cost of living.
The energy price cap, set by the regulator Ofgem, acts as a safety net for consumers by limiting the maximum amount suppliers can charge per unit of energy. However, the increase in the cap means that many households will still face higher energy bills.
To mitigate the impact of rising energy costs, the government implemented various support measures, including the Energy Price Guarantee. However, as these measures were temporary, it is essential for households to take steps to reduce their energy consumption and explore alternative energy suppliers to find the best deals.
Solar PV systems can be a significant help in mitigating the impact of rising energy costs. By generating clean, renewable energy, solar panels can reduce a household's reliance on the grid and, consequently, their energy bills.
There are several ways in which solar installations can help:
Energy Generation: Solar panels convert sunlight into electricity, which can be used to power your home. The more electricity your solar system generates, the less you'll need to purchase from the grid.
Export Tariffs: Many homeowners can benefit from export tariffs such as the Smart Export Guarantee, which allow them to sell excess solar-generated electricity back to the grid at a premium rate. This can provide a source of income and further reduce your energy costs.
Battery Storage: Combining a solar system with a battery storage system can enhance its efficiency. Batteries can store excess solar-generated electricity for use during periods of low sunlight or high energy demand, reducing your reliance on the grid. Those working away from home during the day would be the biggest beneficiaries of this, allowing the battery to charge during the day and using the excess energy in the evening for your appliances.
Reduced Reliance on the Grid: By generating your own electricity, you become less dependent on the grid and its fluctuating prices. This can provide a degree of insulation from future energy price increases.
While the initial cost of installing a solar system can be significant, the long-term savings on energy bills can make it a worthwhile investment.
Atlantic Renewables can provide you expert advice alongside the design, supply and installation of your solar PV system. We produce a comprehensive report alongside your initial quotation, that includes your estimated payback period, estimated solar performance and annual generation.
