Ofgem Domestic Price Cap Soars To £3,549 From 1 October
Ofgem, the energy market regulator, has announced its price cap will rise to £3,549 on 1 October. The cap limits how much energy companies can charge per unit of energy and for standing charges in the domestic market. The new figure represents the cost of annual bills for a household with typical usage.
Today’s cap, which took effect on 1 April, stands at £1,971, and the huge 80% increase will leave millions of households struggling to pay their bills this winter. Another steep increase is expected in January, driven by high wholesale gas prices.
The problem we are seeing is that this sharp rise frequently pales in comparison to what some of our clients are seeing when leaving contracts, pre-October first, let alone what some might be facing in the following months.
Businesses are under immense levels of cost and pressure when it comes to their energy, just last week, we heard from several companies leaving contracts of as low as 9-15p/kWh and hitting the market with prices between 60-70p/kWh. These costs are simply not manageable by even the largest of businesses.
So, why are you telling me Solar is a solution?
We’d be lying if we said that adopting Solar PV is a wholesale solution to the energy crisis for your business, and we aren’t naïve to think anyone would believe that. However, at this moment, solar can offer certain businesses a very valuable and immediate lifeline, providing a much-needed pressure release on energy costs.
Our average PPA agreement sits between 12-15p kWh, which supplies your business with a tier one solar system, tailored to your usage with no investment costs. On average our solar systems can provide enough energy to cover approximately 30-40% of your overall usage (roof/ground space permitting). This reduction in grid reliance equates to an average saving of 20-30% on your total bill.
Our average purchased system would provide the same level of coverage at around 30-40% of your overall usage, we can spec this higher, but usually, battery storage would be required to maximise your generation. With a purchased system, however, this coverage amount will almost always translate to an exact savings amount on your annual energy bills as the energy generated by your Solar PV would be cost-free beyond the initial investment.
What are the steps to take next?
We want to make the cost savings and eco benefits of self-generation accessible to as many UK businesses as possible, and right now, we believe that is critically important to the survival of UK industry.
By simply asking the question about solar, you might find you can make savings far more significant than expected. It could offer your company a much-needed release on energy costs, allowing you to invest money where it is needed the most.
Our sustainability consultants work to specify systems based on your space and energy usage, meaning you won’t overpay for an over spec’d system. We can present a proposal that offers significant savings for your organisation, and importantly, a proposal that allows you to maximise your savings as soon as possible.
If you’d like to know more about buying a considered and tailored solar PV system for your business, leave us a message here where one of our sustainability consultants will be in touch.