This week brought game changing news for the UK energy sector. On 4th December 2025, Ofgem – the UK’s energy regulator – approved a massive £28 billion investment to upgrade and expand the electricity and gas networks. This is the first phase of a plan that could reach in excess of £90 billion by 2031.
That investment will bring stronger, safer and more resilient grids, new transmission lines, substations and infrastructure and crucially, an expanded capacity to handle rising demand, especially as the UK accelerates adoption of electric heating, electric vehicles and clean, renewable power.
Why This Matters for Solar
Solar and Renewables Get a Boost
The expansion of the electricity grid is vital if the UK is going to scale up renewable generation including solar. As more homes, businesses and industries electrify, they’ll need a robust grid that can handle fluctuating output and varying demand. The Ofgem investment will help build the backbone of a more efficient grid.
Without grid upgrades, even the best solar farms risk being constrained or disconnected, simply because the network can’t cope. This investment reduces that risk significantly.
Stability + Security = Confidence for Clean Energy Investors
For SolarTherm UK, long term investments in solar arrays and other clean energy infrastructure depend on certainty – reliable grid connections, fair regulation and confidence that demand will continue to grow. Ofgem’s commitment, paired with Government backing, sends a strong signal that the UK is serious about energy transition.
It also helps avoid shocks like those seen in 2022, when gas price volatility rocked the UK energy market, sending prices sky high. By expanding electricity capacity and reducing reliance on imported gas, the risk of future gas-related price spikes diminishes.
What This Could Mean for UK Households
Ofgem estimates the grid upgrades will add around £108 per year by 2031 (split ~ £48 for gas, £60 for electricity) to domestic bills. For businesses, especially energy intensive ones, the effects are more complex, while some may see increased network charges, many stand to benefit from lower wholesale prices, reduced constraint costs and overall lower energy overheads.
For SolarTherm UK, the investment into the grid will make it easier to connect new projects, reducing the risk of bottlenecks and supports a growing market for solar and electrification of the UK energy system.
Why This Matters to Us at SolarTherm UK
At SolarTherm UK, we’ve always believed that the future of UK energy lies in clean, low carbon technology. Ambition alone isn’t enough; infrastructure needs to catch up. Until now, uncertainty about grid capacity, regulatory risk and connection delays have slowed down many solar energy projects.
With Ofgem’s green light to invest in a wholesale grid upgrade, many of those barriers begin to fall, resulting in:
- Quicker and more reliable grid connections for solar arrays
- Greater flexibility to support variable renewable generation (solar + wind + storage)
- More confidence for investors, clients and communities in the long term viability of solar projects
- Improved energy security and reduced reliance on fossil fuels
For SolarTherm UK customers, this is good news: cleaner energy, greater energy resilience and the chance to be part of a sustainable transformation.
Challenges and What to Watch
While upgrades to grid infrastructure can only be a good thing, no transformation happens overnight. There are also a few caveats to consider:
- The grid upgrade will cost money – modest increase to bills are unavoidable, especially in the short term.
- Even with grid expansion, integrating lots of solar means managing variability; energy storage, smart demand and good grid management will remain critical.
- Delivery will take years, the full benefits won’t be realised until closer to 2030-2031.
So while the direction is promising, persistence and smart planning remain essential.
SolarTherm UK’s Commitment – And How You Can Engage
At SolarTherm UK, we’re doubling down on our commitment to deliver high quality solar solutions. Here’s how we intend to align with these developments:
- Accelerate planning and deployment of new solar projects now that grid capacity is being expanded.
- Promote hybrid solutions, combining solar with energy storage, smart controls and energy efficient systems to maximise stability and efficiency.
- Work with local authorities, businesses and communities to leverage grid upgrades and support electrification plans.
- Keep transparency on costs, savings and long term paybacks, so customers understand both the short term and long term benefits.
We believe this is a once in a generation opportunity for the UK to transitions to clean, homegrown energy – and for SolarTherm UK to lead the charge.
Are You 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.
Your home. Your energy. Your future.
