Being energy independent is increasingly on people’s minds now, with price cap rises and uncertainty about the world’s supply chains. Here, Joe Allen-Houlder looks at how solar panels can help you beat the energy price hikes.
As of October 1, 2024, the energy price cap for a typical household in the UK went up to £1,717 a year for those who pay by direct debit. A 10% increase from the previous cap, which was £1,568 per year.
The price cap is the maximum amount that energy suppliers can charge for each unit of energy and standing charge, so the recent rise is concerning for the average homeowner wanting to keep a lid on their monthly bills. In fact, it is not an uncommon question we get asked: How can I reduce my energy bills?
Well, let’s first take a look at what causes the fluctuations in price for our gas and electricity. Energy prices in the UK are influenced by a wide range of factors that are completely out of our control. These include:
- Supply and demand – a big increase in the demand for energy (like after the Covid pandemic when things started reopening) can force electricity prices up.
- Fuel supply – a reduced supply of fuels from some producers can inflate prices. For example, the cold winter of 2022 depleted gas stocks in storage.
- Geopolitical tensions – conflicts between countries, not least the invasion of Ukraine by Russia, is having serious consequences on the prices we pay to power our homes.
- Network and policy costs – higher costs for electricity distribution and transmission can increase prices.
- Weather – weather-related disruptions can affect energy bills. This can include extreme weather events, such as a fierce storm, causing damage to the energy infrastructure, which in turn has an impact on supply.
- Transition to renewable energy – the switch to renewable energy sources can affect energy prices because of the knock-on effect of initial investment costs to set up the infrastructure.
- Power station and infrastructure outages – outages can limit the overall supply of electricity, creating a scarcity that can drive up prices.
Now add to these ‘external factors’ something within your control, but often difficult to achieve: the energy efficiency of your home. This includes insulation and the types of bulbs and appliances you use.
In summary, you have some but certainly not complete control over the size of your energy bills. At least, you don’t if you are entirely dependent on the National Grid.
What is energy independence?
Energy independence for a household means generating enough energy on your own, like through solar panels or wind turbines, to meet your home’s power needs. This reduces homeowners reliance on the national grid, cuts energy bills, and protects against price increases or supply disruptions.
Most homes are running on 100% grid supplied energy currently. Typically, solar panels (excluding a battery) will provide homeowners with 40 – 60% renewable energy meaning their grid supplied energy is between 60 – 40 %.
However with the right battery storage system, the percentage of energy supplied from solar can reach into the high 90 % range.
How can solar panels make me more energy independent?
Solar panels can help you become more energy independent in several ways:
- Generating your own power – by getting solar panels fitted on your property, you can generate a decent portion or even all of your electricity needs. This means you’re less reliant on the National Grid and the energy companies that supply it, and less exposed to those external factors mentioned above.
- Reducing grid reliance – the more solar power you generate, the less you need to draw from the grid. This reduces your reliance on external sources and gives you much more control over your energy consumption.
- Energy storage – with battery storage systems, you can store excess solar energy for use during cloudy days or at night. This further cuts your dependence on the grid and allows you to use your own energy when you need it.
- Emergency power – solar panels with battery storage can provide backup power during grid outages, ensuring that your home or business remains operational.
- Price stability – while energy prices, including the price cap, can fluctuate according to those many factors out of our control, solar panels offer a more stable and predictable energy source. This can help protect you from rising energy costs in the long term.
Energy independence is a great argument for going solar. By becoming more energy independent, you are taking control of your energy consumption, reducing your reliance on fossil fuels, and potentially lowering your energy bills.
But can I afford solar panels?
For more and more of us in the UK, the sums are now adding up when it comes to installing solar panels on our properties.
More than 183,000 solar panel installations on homes were carried out in the UK in 2023, according to the low-carbon certification organisation MCS. Overall, some 1.4 million homes in the UK have solar panels, as of June this year, according to government figures. In 2010, only 28,211 households had solar. That equates to a whopping 4,862% increase in 14 years.
So, yes, solar panels are getting increasingly popular, even if there are one or two reservations for some.
If the price cap rise has got you thinking again about ways to reduce your energy bills, solar panels are best considered as a long-term solution.
The upfront cost of installing solar panels can be significant. However there are finance options available.
A typical solar and battery system around a 4 kw solar panel system with a 5kwh will cost around £10,000.
Talk to our team today about the cost options available.
Is solar power right for me?
The decision to install solar panels is a personal one and energy bills are only part of the equation. We recommend that you weigh up the pros and cons carefully and consider your individual circumstances, including your energy consumption patterns, property location and financial situation. Talking to our friendly experts today can help you make an informed decision.
While the British sun may not be as consistent as in sunnier climes, solar power offers a viable and long-term energy solution for many UK homeowners looking to insulate themselves from energy price uncertainty. By embracing this renewable technology, you can do your bit for the planet while saving money on your energy bills.
For more advice, please give us a contact us and we’d be only too happy to help you make the right decision for you.
