Solar Energy Leading Cuts to Consumer Bills

Solar Energy Leading Cuts to Consumer Bills

According to the solar energy industry, solar power could help to cut bills and replace Russian gas much more quickly than other sources of energy. However, there has been a pushback from some rural communities against a new wave of large-scale solar farms – citing an industrialisation of the countryside as the major reason for the resistance. 

Solar Energy UK have said that there are 7GW of shovel-ready solar installations that already have planning permission and authorisation to connect to the electricity grid. For context, this is far more energy than the Hinkley Point C nuclear reactor due to be completed in 2026 (Only ten years after it was given the green light).  

The Head of Policy at Solar Energy UK, Cam Witten, had this to say –  

“Hinkley Point is about 2.5GW, if memory serves… We’ve got about 7GW of solar that we can feasibly get built and start exporting to the grid in the next two years. It’s a really quick turnaround for basically three times the reward.”  

The United Kingdom currently has around 14GW of installed solar capacity, which has risen by about 1.5GW since 2012. The rapid growth of solar capacity has in part been driven by plummeting costs, fallen 85% over the same time period.  

New solar farms are currently generating electricity for slightly less than £50 per MWh. This is enough energy to supply 2,000 homes for one hour. In comparison, the agreed price for electricity from the Hinckley reactor was £92 per MWh, which will also raise in line with inflation. The cost of gas offers the best contextualisation of how low this price is, as the same MWh in gas would set you back £225. 

Economies of scale have been increasing the size of proposed new solar farms, allowing them to achieve lower costs per unit of energy. The current largest solar farm is Shotwick Solar Park in Northern Wales, with a capacity of 72MW. Sunnica is currently applying for permission to build a 500MW energy farm in East Cambridgeshire and West Suffolk. The proposed site would have more than one million panels plus battery storage, all contained in an area equivalent to 2,500 football pitches.  

However, resistance has come from some locals. Nick Wright, a member of the ‘Say No to Sunnica’ campaign group is quoted as saying – 

“A scheme of this size is industrialisation of the countryside… We need food security as well and this is the incorrect place for solar. In the UK we have 600,000 acres of south-facing industrial roof-space which is unused, we have brownfield sites and we have arable land that is less versatile that this… Prime quality soil shouldn’t be used for solar.” 

Further resistance has come from Members of Parliament, with Matt Hancock being a notable inclusion. Onshore wind developments have faced much of the same type of pushback, making development very difficult. The government’s recent energy supply strategy has also lacked explicit targets for solar energy. 

There has instead been an outlining of an ambition to increase capacity by ‘up to’ five times by 2035, with further pledges to consult on changes to the planning rules to accelerate the roll out. Also included are comprehensive plans for eight new nuclear reactors and 50GW of offshore wind capacity.  

However, emerging solar technology could allow solar panels to harvest the same amount of the sun’s energy in a much smaller area. Production of panels containing a mineral called perovskite will begin shortly by Oxford PV. The first generation of panels is 20% more efficient than traditional silicone-based panels, but the team are confident they can raise this number to 100%.  

This could in turn make smaller installation on rooftops of schools, factories, office buildings, and other buildings much more cost effective. The Head of Materials Research for Oxford PV, Laura Miranda, had this to say –  

“This is the biggest breakthrough in solar technology in decades… We know there are concerns about land use. Having more energy and more power coming from the same area means that we can reduce the areas where we put those panels for the same output.”

Solar Innovation 

This is not the only recent solar innovation in the news. It is quite an exciting time for the industry as there have been two other newsworthy developments which could change the way we harness energy from the sun, further applying downwards pressure on UK energy bills. 

If you would like to read about two exciting solar inventions, you can read our article on Solar Innovation and how solar energy is being made more accessible for all.  

Why are bills so high? 

Unfortunately, customer bills are so high right now due to a ‘perfect storm’ of events. Geopolitical developments, supply issues, and mismanagement are the central reasons as to why UK citizens are shelling out more each month on energy. 

If you would like to find out more as to why prices are so high, we have created several articles that explain the current energy market situation.  

The UK Energy Crisis and Energy Supplier Closures 

Energy Bill Increases in April 

Russia-Ukraine and Energy Sanctions 

Customer Billing – Will I Be Affected?  

As already mentioned, energy costs are spiralling out of control – and the price rises are affecting all of us. For UK energy customers it is difficult to say how your bills will be affected due to the serious volatility in the energy markets. It is important to remember that energy prices are rising, and this will be passed onto consumers through energy bills, making it something to keep a close eye on.        

Different suppliers will feel the pinch in different ways, so it is crucial to be aware of the current situation your energy supplier finds themselves in. It is possible to view up to date supplier profiles with any recent changes for all of the energy suppliers in the UK, here.       

At a time where bills look set to rise due to market volatility, it is also a good idea to ensure that you are not being overcharged for any of your utilities. It can be a tricky task to navigate but there are free online tools to remove the hassle available.     

You can find a free online Gas Bill Calculator to see if you are being overcharged, here.       

You can find a free online Electricity Bill Calculator to see if you are being overcharged, here.       

Energy Solutions by Us, for You    

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Keeping up to date with developing situations and the associated ramifications is a tricky and time-consuming job. It is also one that is not likely a priority for you and your business.       

So, what do you do?       

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Energy Solutions have been trusted brokers for countless businesses for over twenty years, which means we know how to navigate the energy markets during a time of uncertainty.       

Contact us today to find out how we can help you and your business            

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