The Upcoming October Price Cap Increase: What to Expect and How to Prepare for it

From 1 October to 31 December 2024, energy prices for typical households using both electricity and gas and paying by Direct Debit are set to rise. The new cost will increase to £1,717 per year, representing a 10% increase which is approximately £12 more per month to the average household bill.

However, it’s important to note that the exact amount you’ll pay will vary based on factors such as:

  • Your household’s energy usage
  • Your location
  • The type of meter you have

Who Are Ofgem and Understanding the Energy Price Cap

Ofgem is the regulator that safeguards consumers, working to ensure they receive fair and greener energy. They establish the maximum rates that energy companies can charge for their standard tariffs.

Many people mistakenly believe the Price Cap limits the total amount you can pay for energy, but that’s not true. The cap only sets a maximum on the standing charge and unit rates that energy providers can apply. This means your final bill depends on how much energy you use—if you consume more, you’ll pay more.

What is the Q4 2024 price cap?

From 1st October 2024 to 31st December 2024, the following rates and charges will apply*

Electricity 1st October to 

31st December 2024

 1st July to

30th September 2024
Unit Rate 24.50p per kWh 22.36p per kWh
Standing Charge 60.99p per day 60.12p per day

The energy price cap is reviewed every three months to reflect changes in wholesale energy costs for suppliers. The current cap is based on a “typical household,” but factors like your tariff, payment method, and location could result in you paying more than this cap. You can find a detailed breakdown here.

Wondering does the new price cap affects you? The price cap increase will apply if you are on a default tariff, your fixed-term energy deal expires and you don’t switch in time, your previous energy provider has gone bust, or you’ve moved to a new home. If you’re on a fixed-term contract with rates higher than the price cap, your tariff will stay the same. It’s a good idea to contact your energy provider to check for any exit fees and explore switching to their standard tariff.

By staying informed about these changes, you can take proactive steps to manage your energy consumption and minimise the financial impact of rising costs. With energy prices on the rise and uncertainty about future electricity costs, many homeowners are turning to solar panels as a key solution to regain control over their energy bills.

Why more people are switching to Solar Panels?

Homeowners are increasingly switching to solar PV for a variety of reasons, including financial savings, environmental benefits, and energy independence

The UK’s solar capacity has now reached 17GW, according to The Department For Energy Security and Net Zero. Analysis by Ember shows that the UK is experiencing steady growth in solar installations, with an 11% year-on-year increase in installed capacity, matching the growth rate seen in Germany.

In addition to lowering your property’s carbon footprint and reducing dependence on the grid, solar PV allows you to earn money by selling surplus energy back to the grid through the Smart Export Guarantee (SEG). Advances in technology also enable you to store excess energy produced during the day using a battery storage system, which can be used later in the evening.

Why Choose SunGift Solar as my Solar PV Installer

Choosing the right installer is critical to ensuring you get the most out of your solar PV system, and SunGift Solar stands out as a top choice. Here’s why:

1. Award-Winning Expertise

SunGift Solar is an industry leader with a track record of excellence, recently winning Regional Solar PV Installer of the Year. With numerous awards and recognition for innovation and customer service, you can trust that your solar PV installation will be handled by skilled professionals with years of experience.

2. Tailored Solutions

Every property is unique, and SunGift Solar takes a personalised approach to designing systems that meet your specific energy needs. We don’t offer one-size-fits-all packages; instead, carefully assess your property and energy consumption to create a custom solution that maximises efficiency and savings.

3. Premium Quality and Reliability

SunGift Solar is committed to using only the highest-quality materials and cutting-edge technology. By partnering with leading solar manufacturers, we ensure your system is durable, efficient, and built to last, providing you with long-term energy savings and peace of mind. In 2024 we were awarded the Tesla Premium Installer status. A Premium Tesla Powerwall Installer badge is not awarded to just any company, there are numerous considerations that are made. Companies are evaluated on their installations, quality of training, and customer satisfaction to determine the most exceptional performers.

4. Comprehensive Service from Start to Finish

From the initial consultation and design phase to installation and ongoing support, SunGift Solar provides a seamless, stress-free experience. Our expert team manages every step of the process, ensuring a smooth installation and offering full aftercare to keep your system running optimally.

5. Commitment to Sustainability

As a company focused on sustainability, SunGift Solar goes beyond installations to promote renewable energy solutions. Social responsibility has always been a core part of our business values. We understand the importance of actively engaging with and contributing to the communities we serve.