What is the current electricity rate?

24.5p/kWh (Ofgem Q1 2026 price cap). This is the rate used for all 2026 savings calculations.

Unlikely to pre-crisis levels (14p). Most forecasts: 22-28p for 2027. Long-term trend: upward (5-7%/year historically). Solar protects you regardless.

UK Electricity Rates & Solar

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

Independently written | Evidence-based | Sources cited

UK electricity rates and solar savings — At 24.5p/kWh, every kWh of solar saves you money. If prices rise: you save even more.

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How do electricity rates affect solar savings?

UK electricity rate Q1 2026: 24.5p/kWh (Ofgem price cap). Historical trend: +5-7% per year over 20 years. Pre-crisis (2020): 14p. Peak crisis (2023): 34p. Current (2026): 24.5p — 75% above pre-crisis. Solar savings are DIRECTLY proportional to the electricity rate: at 24.5p, solar saves £580-£1,100/year. If prices rise to 30p: savings increase to £710-£1,345. If to 40p: £950-£1,790. Solar is your personal hedge — once installed, your solar electricity costs £0 regardless of grid price.

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