What happens if electricity gets really cheap?

Even at 15p/kWh (historically low): a 4kW system still saves £360-£680/yr. Payback extends to 11-18 years but remains profitable. At any realistic UK electricity price, solar pays for itself.

Can electricity prices go down from here?

Unlikely to return to pre-2021 levels (18p). Reasons: gas price volatility, grid investment costs, net zero policies, and increasing global energy demand. Most analysts predict 25-35p/kWh for the foreseeable future.

Is solar a hedge against price rises?

Yes — solar locks in free electricity at today's cost for 25-30 years. If prices rise 5% per year: your solar savings double in 14 years. Solar is the best inflation hedge available to homeowners.

Does the cap affect SEG export rates?

Indirectly — higher wholesale prices tend to increase SEG rates. During the 2022 crisis, some SEG rates reached 15-20p/kWh. Current rates: 4-15p/kWh. Higher cap generally means higher export income.

Solar and Energy Price Cap

By Home Solar Guide Team|Updated 18 March 2026|money

Independently written | Evidence-based | Sources cited

Solar price cap — Higher price cap = higher solar savings. Solar is your hedge against rising prices.

What would this actually cost at your home?

Installed prices vary widely by roof, access and region. Get an installed price for your property from MCS-certified installers.

Get an Installed Price

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What would this actually cost at your home?

Installed prices vary widely by roof, access and region. Get an installed price for your property from MCS-certified installers.

Get an Installed Price

How does the price cap affect solar savings?

The Ofgem energy price cap directly determines your solar savings: every kWh you self-consume saves you the unit rate. CURRENT CAP (26.11p/kWh): 4kW system saves £580-£1,100/yr. IF CAP RISES TO 30p: saves £720-£1,360/yr. IF CAP RISES TO 35p: saves £840-£1,590/yr. IF CAP FALLS TO 20p: saves £480-£900/yr (still excellent). HISTORY: Pre-crisis (2021): 18p/kWh. Peak crisis (Oct 2022): 34p/kWh. Current (2026): 26.11p/kWh. The trend is UP — energy prices have never returned to pre-crisis levels. Solar locks in FREE electricity regardless of what happens to the cap. Even at the lowest realistic future price (20p/kWh): solar ROI remains 80-300%. At current or higher prices: solar is one of the best financial decisions available to UK homeowners.

Frequently Asked Questions

Related: Home Heating Systems

Solar panels are most powerful when combined with an efficient heating system. Heat pumps use solar-generated electricity to heat your home at 300-400% efficiency — making them the ideal partner for solar.

heat pump running costs in the UK

Heat pumps use electricity at 300-400% efficiency, making them ideal partners for solar.

From our sister site Home Heat Pump Guide