If you’ve received a notification from your energy provider about the latest electricity price cap increase, you might be wondering how this affects your bills and more importantly, how you can take control of your energy costs. With electricity prices continuing to rise, many homeowners are looking for long-term solutions to reduce their reliance on the grid.

In this guide, we’ll break down the new electricity rates, explain how they impact your household, and explain why solar PV is the best way protect yourself from rising costs.

What is the Energy Price Cap?

The energy price cap is the maximum amount that energy suppliers can charge per unit of gas and electricity, as well as the standing charge for being connected to the energy grid. It is set by Ofgem, the UK’s energy regulator, to ensure that customers on default standard variable tariffs aren’t overcharged.

However, it’s important to understand that the price cap does not limit your total bill, it only caps the unit rate you pay for energy. Your final cost will depend entirely on how much energy you use.

What Does the Price Cap Increase Mean for Your Bills?

From April 1, 2025, the energy price cap will increase by 6.4%. In real terms, this means:

  • For every £100 you currently spend on energy, from April onwards, you’ll be paying £106.40.
  • The average annual bill for a household paying by direct debit will rise to £1,849, up from the current £1,738.
  • Daily standing charges continue to rise. Even if you don’t use much electricity, you will still be charged 53.80p per day just to stay connected to the grid, adding up to over £196 per year before you even use a single unit of electricity.

This increase applies to customers on default tariffs who haven’t switched to a fixed-rate deal and households that rely heavily on the grid will feel the biggest impact.

Breakdown of New Electricity Energy Rates

Electricity 1st October to 31st December 2024
Unit Rate 27.03p per kWh
Standing Charge 53.80p per day

These rates apply to households on standard variable tariffs across England, Scotland, and Wales.

How Can You Reduce Your Electricity Costs?

If you’re on a standard variable tariff, your electricity bills will increase automatically from April. However, there are ways to protect yourself from rising costs:

1️⃣ Fix Your Electricity Tariff Now

Some 12-month fixed tariffs are currently available at rates lower than the current cap. Fixing now means:
Locking in a lower rate for a year
Avoiding the 6.4% increase in April
Gaining price certainty so you won’t face unexpected bill hikes

If you’re still on a default tariff, now is the time to compare your options and switch to a better deal.

2️⃣ Reduce Electricity Consumption with Energy Efficiency Measures

Small changes can make a big difference to your electricity usage and lower your bills:
Switch to LED bulbs—they use up to 80% less energy than traditional bulbs
Turn off standby appliances—this can save around £65 per year
Improve home insulation—reducing heat loss means using less electricity for heating

While these steps help reduce your bills, they don’t address the core issue – continuing rising energy bills. This is why solar power is the go-to solution for homeowners looking to take control of their energy bills.

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The Ultimate Solution, Generating Your Own Electricity with Solar PV

The best way to ease the pressure of rising electricity costs is to generate your own power and that’s exactly what a Solar PV system allows you to do.

How Does Solar Help Reduce Your Electricity Bills?

  • Produce your own electricity at home instead of buying from the grid
  • Use solar energy during the day when appliances consume the most power
  • Drastically reduce your grid electricity dependence
  • Sell excess energy back to the grid through the Smart Export Guarantee (SEG), providing an additional income stream

Choosing solar is a big decision, and that’s why our team of expert solar consultants is here to make the process easy for you. We provide bespoke solar designs tailored to your specific property, ensuring you get the best possible system for your needs.

  • Personalised Solar Assessments – We analyse your energy usage, roof space, and budget to design a system that maximises your savings.
  • Clear Cost & Savings Breakdown – No guesswork involved. We provide a detailed forecast of how much you’ll save with solar over the years, so you can make an informed decision with confidence.
  • Expert Installation & Support – Our professional team handles the entire installation process, ensuring a seamless transition to solar energy.
  • Future-Proofing Your Energy Costs – Whether you choose solar panels alone or want to enhance your savings further by adding battery storage, we design solutions that help you reduce reliance on the grid and secure long-term savings.

Looking Ahead, Will Electricity Prices Keep Rising?

Energy analysts predict that after April’s increase, electricity prices are likely to remain high for the rest of the year. However, beyond 2025, electricity costs could continue to rise, making now the perfect time to take action.

Instead of being at the mercy of price caps and supplier increases, switching to solar sooner rather than later means you start saving immediately and lock in those savings for the future.