It’s shocking to know that despite 65% of UK electricity being generated from renewable sources in 2024, our electricity bills are still went up. We’re told wind, solar, nuclear and tidal energy is becoming more affordable to generate than fossil fuels, so its reasonable to ask
“If green energy is cheaper to produce, why are my energy bills still going up?”
At SolarTherm UK we believe in being transparent and helping our customers make informed decisions regarding their energy use and production. This article will investigate the reasons why your energy bills are still rising despite the UK’s move to renewable electricity sources.
What Determines the Cost of Electricity?
While up to 65% of UK electricity is now produced from renewable sources, it is the cost of gas-fired power plants that determines the cost of your electricity. The price of electricity is dictated by the most expensive source of generation available, which in the UK for 98% of the time is gas.
The Cost of Progress: Grid Upgrades and Your Energy Bill
It is estimated that £58bn worth of upgrades are needed to modernise the National Grid to support renewable energy. The new infrastructure will mean more capacity to bring electricity from the north of the country to the south. This has to be paid for though and it’s the suppliers that are charged to modernise the grid, which in turn is passed onto the consumer, resulting in higher energy bills.
The National Grid cannot cope with the current surge in renewable energy, the infrastructure is not there to transfer the green energy from where it’s produced to where it’s used, meaning wind and solar farms are regularly asked to turn production off. 2025 has seen more than £500 million already paid to companies to reduce generation or stop completely to prevent the overload of the grid. These costs are also passed onto the consumer, further increasing your bills.
Are My Bills Set to Go Down in the Future?
The answer to this is no one knows. Energy prices in the UK continue to be volatile, and while we are still relying on electricity being produced by gas-fired power plants and the grid infrastructure remains incapable of supporting a full move to green energy, prices will continue to rise.
One of the suggestions by the government to reduce energy costs is to introduce zonal pricing – meaning prices will differ depending on where you live and how available green energy is in your local area. This is perfect for those who live in Scotland, Wales and the north of the country where large renewable energy farms have been installed, but for those in the south, prices will remain higher. The idea is meant to increase investment in green energy in areas where there isn’t any and make those who are in the south be more aware of their energy usage.
So, What Are My Options?
If you live in the South East, SolarTherm UK sees the only answer to lower your energy bills is to invest in your own future by installing a solar PV system. The more electricity you can generate and use yourself, the more you will save. Alternatively, you can continue to rely on the grid and pay the ever rising costs of electricity from your supplier.
If you are ready to explore your solar journey, contact SolarTherm UK for a free bespoke design package – no hard sell, just honest, expert advice – we believe the figures speak for themselves.
