Solar and Standing Charges

Does solar reduce standing charges?

Solar panels do NOT reduce your electricity standing charge: STANDING CHARGE: ~61p/day (£223/yr) — a fixed daily fee regardless of consumption. You pay this even if you use zero grid electricity. Solar reduces the UNIT CONSUMPTION part of your bill — the kWh charges. BEFORE SOLAR: standing charge £223 + 2,900 kWh at 24.5p = £710 = TOTAL £933/yr. AFTER SOLAR (4kW, 50% self-consumption): standing charge £223 + 1,450 kWh at 24.5p = £355 = TOTAL £578/yr. SAVINGS: £355/yr on units. Standing charge unchanged. WITH BATTERY (80% self-consumption): standing charge £223 + 580 kWh at 24.5p = £142 = TOTAL £365/yr. SAVINGS: £568/yr. Standing charge still unchanged. The only way to eliminate the electricity standing charge: go completely off-grid (not practical for most UK homes).