The Energy Price Cap Has Gone Up Again. Here’s How Solar Can Shield You
Energy bills are going up again on 1 October. Ofgem’s price cap is rising by 4%, right as the heating goes on and the evenings draw in, and analysts are already warning that January could bring a much bigger jump.
If you’re tired of watching your bills move every three months, there is a way to take a big chunk of your energy costs out of Ofgem’s hands altogether. Here’s what is changing, what it means for your household, and how solar panels and battery storage can shield you from the next rise.
What is changing?
From 1 October to 31 December 2026, the price cap for a typical dual fuel household paying by Direct Debit will be £1,723 a year, up £60 from £1,663. That works out at roughly £5 more a month on average, though what you actually pay depends on how much energy you use.
The cap limits the price per unit and the daily standing charge. It does not cap your total bill. The average capped rates from 1 October will be:
| Unit rate | Daily standing charge | |
|---|---|---|
| Electricity | 26.32p per kWh | 54.83p |
| Gas | 7.97p per kWh | 29.68p |
Ofgem has put the rise down to higher wholesale gas prices. The government is also removing VAT from household electricity bills between 1 October 2026 and 31 March 2027, which should save an average of around £45 a year. Without that, the rise would have been noticeably bigger.
The headline figure also hides something. Ofgem updated how it calculates “typical” usage in July. Under the old assumptions, the October cap would have been £1,935, not £1,723.
How will it affect you?
If you’re on a standard variable tariff, your rates will go up automatically on 1 October. That covers around 22 million households across Great Britain. If you’re on a fixed deal, nothing changes until it ends, but you’ll land on whatever the cap is at that point.
The timing makes it sting more. Winter is when most homes use the most energy, so a rise in October hits harder than the same rise in spring. Gas costs for price cap customers will be almost 27% higher than the same period last year.
And it may not stop there. Energy market analysts are predicting the cap could rise by a further 12% to 14% in January 2027. Nobody knows for certain, but the direction of travel is clear: as long as you buy all your energy from the grid, you are exposed to every swing in the wholesale market.
How solar shields you from price rises
The simplest way to think about it: every unit of electricity your panels generate and you use is a unit you don’t buy from your supplier. Ofgem can raise the cap as often as it likes, but it can’t put a price on sunlight hitting your roof.
That’s the shield. The more the price per unit goes up, the more each unit you generate yourself is worth. When electricity was 15p a unit, solar was a good investment. At over 26p from October, and possibly more in January, it pays back faster and protects you more every year prices climb.
A few things work in your favour right now:
- Solar works in the UK, including the North West. Panels run on daylight, not heat. They still generate on cloudy days, just less than in full sun.
- You get paid for what you don’t use. Under the Smart Export Guarantee, your supplier pays you for surplus electricity you send back to the grid. Rates vary by supplier, so it’s worth shopping around.
- 0% VAT on installation. Solar panels and batteries installed on homes currently carry no VAT, which takes a real chunk off the upfront cost.
- Panels last decades. Quality panels come with long performance warranties, so you’re locking in cheaper electricity for 25 years or more, not just this winter.
Why a battery makes the shield stronger
Solar on its own has one weakness: it generates most during the day, when many people are out at work. Without storage, a lot of that power goes back to the grid for a modest export rate, and you buy electricity back in the evening at the full capped price.
A battery fixes that. It stores your spare daytime solar so you can use it in the evening, when the kettle, oven, TV and lights are all on. That means more of your own electricity gets used at home, where it’s worth the full 26p a unit rather than an export rate.
Batteries also help in winter, when the panels generate less. Many suppliers offer cheap overnight tariffs for smart meter customers. Your battery can charge up on low-cost off-peak electricity overnight and run your home through the expensive peak hours the next day. Ofgem itself has pointed to off-peak tariffs as one way to save, and a battery is what lets you make the most of them.
The kit we recommend
The better your panels perform, the more of your energy you take out of the price cap’s reach. That’s why our go to panel is the AIKO Neostar 3N+. It’s one of the most efficient panels on the market, so you get more generation from the same roof space, and it handles shading and low light well, which matters on a British winter day.
If budget is the priority, we’re happy to fit JA Solar or a range of other panels. They’re solid, reliable panels from major manufacturers, and we’ll be upfront with you about the trade off in output.
For battery storage and inverters, we install Hanchu, Fox ESS, Sigenergy and Tesla Powerwall. We’ll recommend the right size and brand based on how your household actually uses energy, not just what’s easiest to sell.
As an MCS, NAPIT, HIES and TrustMark accredited installer, everything we fit is designed, installed and certified properly, so you qualify for the Smart Export Guarantee from day one.
What to do now
In the short term, it’s worth checking whether a fixed tariff beats the price cap, ideally before the rise kicks in on 1 October. Some fixed deals are available at £100 or more below the October cap. If you’re struggling with your bills, contact your supplier as soon as possible to talk about support.
But fixing a tariff only delays the problem. When the deal ends, you’re back at the mercy of the market. Generating your own electricity is the long term answer, because it reduces how much you need to buy in the first place, whatever the cap does next.
Autumn is also a great time to plan. Get surveyed and installed over the coming months and your system will be up and running in time for the long, bright days of spring and summer, when it does its best work.
Ready to take control of your energy bills? Get a free, no obligation quote from Spectra Solar and we’ll show you exactly how much solar and battery storage could save your household.