Energy prices across the UK continue to rise, causing anxiety for many homeowners. With ongoing increases to the UK’s energy price cap and no clear end in sight, more households are searching for practical, long-term ways to take back control of their electricity bills.
Among the growing list of energy efficient home improvements, solar renewable energy stands out as one of the most powerful tools to protect yourself from escalating costs.
With the right solar power solutions, homeowners can produce their own electricity, reduce reliance on the grid, and even generate extra income through schemes like the Smart Export Guarantee (SEG). But beyond the savings, solar panels offer a sense of energy independence, shielding households from future market volatility.
For many, the decision to go solar comes with various questions, including the cost of installing solar panels, their efficiency and suitability for the UK climate, and whether there is any government funding.
At Viable Power, we understand these concerns and guide homeowners through every step of the process, offering tailored advice based on each property’s needs. In this article, we’ll explore how solar power solutions can directly address rising energy prices and why now may be the best time to invest.
Understanding Why UK Energy Prices Are Rising
Energy price hikes are not new in the UK, but recent years have brought a particularly sharp rise. Ofgem, the UK’s energy regulator, adjusts the energy price cap regularly to reflect wholesale energy costs. Unfortunately, these adjustments continue to trend upward due to global market volatility, geopolitical tensions, and supply chain pressures.
As of April 2025, Ofgem did announce a 6.4% rise in the energy price cap, bringing the average annual energy bill to £1,849, up from £1,738 earlier in 2025. This represents a 52% increase compared to winter 2021/22 levels. The current electricity price cap is 27.03p per kWh, while gas is 6.99p per kWh.. Although electricity standing charges have dropped slightly, the rising unit costs mean that bills for actual usage have gone up.
How Solar Panels Offer a Long-Term Solution
Solar panels allow homeowners to generate their own electricity, significantly offsetting what they would otherwise buy from the grid, and modern photovoltaic (PV) systems are designed to operate in varying light conditions, adding to their efficiency in capturing daylight throughout the year.
For homes looking to further reduce grid reliance, combining panels with solar battery storage allows excess power to be stored for night-time use, giving homeowners greater control over when and how they use their generated energy. With energy prices predicted to stay high for the foreseeable future, these savings compound quickly — and many systems pay for themselves within 7 to 13 years.
Do Solar Panels Work in the UK’s Cloudy Climate?
A common myth is that solar panels are ineffective in the UK’s weather. But in reality, modern solar panels generate power even on overcast days, producing 10% to 25% of their rated capacity. In fact, the UK’s cooler climate can enhance panel efficiency, as high temperatures can reduce performance in hotter regions. So while the sun may not always be shining, solar power solutions remain a reliable renewable energy source for UK homes.
The Cost of Solar Panels in the UK — and Why Now is the Time to Act
A typical 4kW system, suitable for an average 3-bedroom home, costs around £5,000 to £6,000 to install. Smaller homes might opt for 3kW systems, starting from £4,500, while larger properties could choose a 5kW system, costing up to £8,500.
Battery storage, while an additional investment, increases energy independence by storing daytime generation for evening use. These batteries can add between £2,500 and £10,000, depending on size and capacity.
Fortunately, the 0% VAT rate on solar panel installations, introduced in 2022 and extended to 2027, makes solar more affordable than ever, reducing costs by up to 20%.
Financial Benefits: Lower Bills and Earnings from the Grid
The financial benefits of solar panels begin as soon as they are installed. A 4kW system can generate around 3,400 kWh annually, close to or exceeding the usage of an average UK household.
At current energy rates, this level of production could save homeowners £660 per year, and if prices increase further as expected, these solar panel saving figures will also increase accordingly. For homes with battery storage, savings are even greater because less purchased electricity is needed during peak evening hours.
One additional benefit includes the Smart Export Guarantee (SEG) which allows homeowners to sell excess electricity back to the grid. Depending on the energy supplier and SEG tariffs, an average system could translate into considerable earnings in a year, further reducing the payback period.
Government Support to Make Solar Affordable
The ECO4 scheme, running until 2026, offers full funding for solar installations to low-income households in poorly rated properties.
The Warm Homes Plan, available from 2025 to 2028, provides grants for solar panels and other home improvements for social housing tenants, private renters, and low-income homeowners.
Another major initiative, HUG2 (Home Upgrade Grant Phase 2), funds solar installations for homes off the gas grid, especially in rural areas reliant on expensive fuels.
If you’re looking to make the most of available grants for your solar installation, we can help you navigate the options to get the best available funding for your solar installation.
Why Choose Viable Power
At Viable Power we do more than install panels — we act as trusted advisors. Our goal is to help you choose a system that’s right for your home, lifestyle, and budget. We offer tailored guidance on whether to add batteries, how to maximise energy use, and how to access government grants. By working with leading manufacturers and staying up to date with UK regulations, we’ll ensure you receive a high-quality, future-proof solar power solution.
If you’re ready to explore how solar can protect you from energy price hikes, contact Viable Power today for a free quote and consultation. We’re here to help you future-proof your home and start saving.
