How Can The UK Cut Energy bills and Still Go Green?

Increasing pressure on the government to address the UK energy crisis and provide solutions for the escalating cost of living raises a critical question: Can the UK cut energy bills and still go green?

Slashing bills

The weight of expectation to cut the prices of household bills is becoming heavier as consumers struggle under the pressure of the cost-of-living crisis that is sweeping across the UK.

The need for a speedy solution has been a hot topic of debate, and there are many opinions about what the government needs to do. New scepticism regarding green technology has grown, with some arguing that a crisis of this scale cannot risk even higher bills.

However, as The Guardian reported in late April, PM Boris Johnson backed his environmental agenda, rejecting ideas of ditching green technology to tackle the cost of living crisis.

During a visit to India, the Prime Minister was asked whether he thought it wise to scrap proposed green solutions to keep household bills down.

He stated, “Actually green technology, green, sustainable electricity can help to reduce bills. Overall, if you look at what we have done with renewables, it has helped to reduce bills over the last few years and will continue to do so.”

Nor Johnson nor the government’s Energy Security Strategy that was published at the start of April have been clear about plans to offset the cost of living. Although a Cabinet meeting recently held by the Prime Minister called for ideas on how to cut soaring energy bills, we are yet to see a clear solution which upholds both the environmental agenda and tackles the energy crisis.

The solution

An idea that has been gaining support within the renewable energy sector, and the media, is to implement green technology appliances on a mass scale.

Although most people in the UK are familiar with their energy supplier, there are four types of companies that make up the UK power network that all help deliver power to your home;

1. Generation: the companies that own and operate power plants
2. Transmission: companies that operate high voltage transmission networks
3. Distribution: companies that operate local distribution via towers, cables and meters
4. Suppliers: electricity sellers like the Big Six, Octopus, Shell Energy, Outfox the Market etc

The licensed company responsible for distributing electricity from the national transmission grid to your home or business is the Distribution Network Operator or DNO. These are the people you should call if there is a power cut, as they are responsible for the network of towers, transformers, poles, cables and meters that carry power to your home.

The Distribution Network Operators (DNOs) are in a prime position to implement low-carbon infrastructure into households.

How? Firstly, DNOs are uniquely positioned to impose a fixed annual charge for customers (even if they change suppliers). This guarantees a return on investment over a set number of years, providing a stable and predictable solution.

Not only would this approach lower household bills (see What this would mean for Me?), it would push the country towards our net-zero goal, because the utilities would be regulated and incentivised to meet specific quotas. For example, installing X number of solar panels nationwide in X amount of time.

This solution would allow for a fast turn-around, with successful similar models in countries like Italy. A solution for the government, (who would see progress towards their net-zero goals) whilst providing some much-needed help with the astronomical cost of living increases that are bearing down on households nationwide.

What would this mean for me?

The Energy Saving Trust says that solar panel investment takes 14 years to be paid back. So, any schemes implemented by organisations which span a period longer than 14 years mean lower household bills.

This cost could be offset even more if installations were rolled out on a large scale. For instance, if multiple homes on the same street installed solar panels on the same day, there could be savings made on installation costs.

Also, installation costs are forecasted to come down over the next few years, as companies find more efficient ways of installing solar panels and heat pumps into homes.

Reuters reports that electricity supplier Octopus is already fitting heat pumps into homes more efficiently than ever, charging customers a mere £3–4k (effectively £8–9k before the government’s £5k subsidy).

So what does this mean for homeowners who already have solar panels, and what about those looking to install some?

For existing solar homeowners, the immediate benefits are clear, as lower (or no) energy bills are offsetting some of the increased costs of living. For those looking to take control of their own tariffs and energy bills, investing in solar has never been more appealing.

Solar energy furthers the sustainability of our everyday lives. It helps preserve our ecosystems, but it is an increasingly sought after solution to provide some much-needed stability in a household’s expenditure during this energy crisis.

With government schemes and incentives looking to back green technology for the foreseeable future, there’s never been a better time to check out the latest offers and opportunities to slash your bills with solar.