Ofgem confirms UK energy bills will rise again from July 2026

Rising Energy Bills Reinforce Demand for Solar PV and Battery Storage

Millions of households across the UK are set to see energy bills rise again from July after Ofgem confirmed a 13% increase to the energy price cap, with the escalating conflict involving Iran and the closure of the Strait of Hormuz continuing to impact global energy markets.

According to Ofgem, a typical household using gas and electricity on a variable tariff is forecast to pay around £221 more per year, increasing average annual energy bills to approximately £1,862. Some energy suppliers have also warned that prices could rise even further heading into the autumn and winter months if instability across global energy markets continues.

A typical household is already paying around £600 more per year for energy compared to before the energy price crisis, when global gas prices surged following Russia’s invasion of Ukraine. While the latest increase remains below peak crisis levels, it further highlights the continued vulnerability of UK energy costs to international geopolitical instability and volatility in global energy markets.

Despite continued growth in renewable energy generation across the UK, gas-fired power stations still play a major role in balancing electricity supply and demand. As a result, fluctuations in wholesale gas prices continue to heavily influence electricity prices across the country.

The latest announcement further reinforces why record numbers of homeowners and organisations are switching to solar PV and battery storage to improve energy resilience, reduce reliance on imported energy and protect themselves from increasingly volatile energy costs.

Solar PV allows properties to generate electricity directly on-site, helping offset grid consumption during daylight hours, while battery storage enables excess renewable energy to be stored and used during peak pricing periods or overnight. Combined, these technologies can significantly reduce exposure to future energy price volatility while also delivering significant financial savings and carbon reductions.

The UK solar sector continues to experience rapid growth as energy security, sustainability and long-term cost certainty become increasingly important priorities for homeowners, businesses and public sector organisations alike. March 2026 recorded the strongest month for solar deployment since 2012, with more than 27,000 solar systems installed across the UK in a single month, while the country also surpassed two million total solar installations for the first time.

At SolarSense, we are seeing growing demand for residential solar and battery storage systems as homeowners seek greater energy security, alongside a significant increase in commercial solar PV, battery storage and solar carport enquiries from organisations looking to reduce exposure to rising and unpredictable energy prices.

If you’re interested in reducing your home or business energy costs, try our solar calculator or request a free, no-obligation desktop proposal including your projected financial savings, carbon reductions and overall return on investment.