What It Means for Solar Owners
On 25th February 2026, regulator Ofgem confirmed a 7% reduction in the UK Energy Price Cap – a move that will lower the average dual fuel bill from £1,758 to £1,641 for a typical household from 1st April to 30th June 2026. This represents a saving of around £117 a year or roughly £10 per month for households on default tariffs.
This welcomed drop reflects wholesale energy costs and changes to how environmental and social policy costs are funded – with some now supported through general taxation rather than by consumers’ bills.
While everyone with solar panels benefits from lower grid costs, homeowners with solar PV are uniquely positioned to maximise savings and protect themselves from future price volatility.
What’s Changed in the Energy Price Cap?
The latest Ofgem cap sets:
- Electricity unit price: 24.67 p/kWh
- Electricity standing charge: 57.21p per day
- Gas unit price: 5.74 p/kWh
- Gas standing charge: 29.09p per day
These figures apply to customers on a standard variable (“default”) tariff paying by direct debit across England, Wales and Scotland. Compared to the previous quarter (January-March 2026), the cap is now £117 lower and £208 (11%) lower year on year than April-June 2025.
Why This Matters for Solar Owners
For households with solar PV systems – especially those with battery storage – the price cap reduction is significant but only part of the story. Here’s why:
Sell Less, Save More
Even with a lower retail price for electricity from the grid, generating your own power still reduces what you buy. Every kWh your solar system produces offsets expensive grid electricity – a clear win when the price cap drops unit rates.
This means higher value retained by self-consumption, reducing your total bill beyond the headline cap figures. This is particularly valuable during spring and summer months when solar production is higher.
Lock In Protection Against Future Price Moves
Energy prices remain well above pre-2021 crisis levels, despite recent reductions. Installing solar panels or solar + battery storage gives households insulation from grid price volatility, locking in a predictable, low cost source of power for decades.
Solar systems – especially when paired with battery storage – can store surplus generation for use during higher grid price periods. At a price cap of ~ 24.7 p/kWh, that stored solar power can avoid high import costs at peak time.
Solar Batteries Boost Value
Solar generation combined with battery storage gives even more control. Some South East homeowners now pay more in standing charges relative to unit costs (standing charges are daily fixed fees), so minimising grid interaction through storage becomes more financially impactful as these charges make up a larger share of total bills.
Top Tips for Solar Owners After the Price Cap Drop
Here are some practical strategies to make the most of the new price cap environment:
- Maximise self-consumption: shift appliances like EV chargers, washing machines and dishwashers to solar production hours using smart plugs and timers.
- Consider time of use tariffs: if available, these can offer even cheaper off peak rates which solar owners can exploit with a battery.
- Evaluate export returns: while export tariffs in the UK aren’t huge, they still provide extra value for surplus solar generation sold back to the grid.
- Stay informed on SEG and incentives: the Smart Export Guarantee encourages exports, providing an ongoing revenue stream.
Conclusion – A Positive Move for Solar Households
While the energy price cap drop offers a welcome relief for all households, it also reinforces a key message for solar owners: generating your own electricity pays off even more when grid prices are volatile.
By reducing dependence on grid electricity and boosting self-consumption – especially with battery storage – solar PV owners can drive their energy costs down futher and lock in long term resilience against future price fluctuations.
With the price cap now lower and more predictable, solar households are in a stronger position than ever to reap the financial and environmental benefits of their renewable investments.
Ready to Join the Solar Revolution?
Contact SolarTherm UK today for a free, no obligation quote and design, tailored to your property, usage and future energy needs. No hard sell, just honest, expert advice – and the time you need to make an informed decision. Energy prices may be going down, but early predictions suggest they will be increasing towards the end of the year, act now to take back control of your energy future.
Your home. Your energy. Your future.
