Is Solar Still Worth It In 2024? UK Energy Price Cap Update

Is Solar Still Worth It in 2024?
UK energy
Price Cap Update

Many homeowners will be wondering, is solar still worth it?

On Friday 24th May, Ofgem announced that energy bills will decrease by over £100, with the average annual bill falling to £1,568 in July, a 7% drop from the current period. However, this is still higher than pre-crisis levels, where bills averaged £1,084. Despite this reduction, experts warn it may be temporary, with prices potentially rising again. The energy price cap, adjusted quarterly by Ofgem, highlights ongoing market volatility.

Changes to electricity unit prices and standing charges, 1 April to 30 September 2024 ​

Feature 1 April to 30 June 2024 1 July to 30 September 2024 Change
Energy Price Cap (pence per kW)
Daily Standing Charge (pence)

Source: Taken from Ofgem (2024) Energy Price Cap

Is Solar Still Worth It?

Despite the significant decrease of the price cap, this announcement has come during an ongoing cost of living crisis that has seen many consumers struggle with escalating bills. And whilst the price cap reduction is a welcome relief, it underscores the pressing need for long-term solutions to energy affordability and sustainability. This scenario, which coincides with the government’s consultation on the Future Homes Standard, shines a spotlight on the potential benefits of solar panels for homeowners, presenting a compelling case for renewable energy as a viable strategy to mitigate the impact of fluctuating energy costs.

The Energy Market Remains Volatile

Expert forecasts suggest this recent relief may be short-lived. Respected research firm Cornwall Insight predicts bills will rise again to £1,762 from October, maintaining this level until March. This anticipated increase is driven by rising wholesale gas costs, fueled by concerns over potential disruptions in gas flows from Russia to Austria’s OMV and the financial instability of a key US gas exporter. These factors underscore the volatility of the energy market and the need for sustainable solutions like solar power.

The Savings Are Still Attractive

Albeit a 7% decrease in the price cap can feel like a significant relief, efficient solar PV systems still beat these politically dictated savings. Not only do we often see a 50-70% reduction in energy bills due to effective solar PV systems, we also know that these savings are a far more stable alterative to what a political policy can offer (i.e. the sun isn’t going to suddenly turn off your savings).

The Environmental Benefits Remain

Continued fossil fuel use harms the environment. Solar panels leverage the untapped potential of domestic rooftops, significantly reducing the necessity for large-scale power plants and protecting natural habitats from industrial encroachment. This innovative use of existing space not only emphasises the sustainability of solar power but also contributes to a greener, more resilient energy infrastructure. By minimising land disruption and lowering carbon emissions, solar PV technology demonstrates a profound commitment to environmental stewardship and long-term ecological balance.

DVC Group Limited, Your Trusted Solar Partner

In light of Ofgem’s latest announcement, the reduction in energy prices, though significant, serves as a reminder of the broader challenges facing the energy sector. It highlights the importance of exploring renewable energy options, such as solar technology, as a means to achieve long-term energy security and affordability.

At DVC Group Limited, we comprehend the unique needs of businesses. We offer a range of PPA options tailored to your specific energy consumption, budget, and sustainability goals. With our expertise and unwavering commitment to customer satisfaction, we can help you unlock the power of solar energy, enabling significant cost savings while showcasing your dedication to a sustainable future.

Ready to learn more? Contact DVC Group Limited today for a complimentary consultation and discover how a commercial solar PPA can empower your business to transition to clean, sustainable energy.

Elevate your brand image, save significantly, and contribute to a greener planet – embark on your solar journey with DVC Group Limited!

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Note: DVC Group is committed to providing tailored solar solutions to meet the unique needs of each customer. We are proud to contribute to a greener, cost-effective, and sustainable future. Let’s power your world with the sun!

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