Electricity Prices Are Rising Again in July — Here’s What Solar and Battery Storage Can Do About It

The Ofgem energy price cap is rising again from 1 July 2026, pushing the electricity unit rate to 26.11p per kWh — up from 24.67p since April. For UK homeowners, it’s another reminder that grid electricity only goes one way. Solar panels and battery storage give you a way to lock in lower costs and stop your bills being at the mercy of the cap every quarter.

What’s changing on 1 July 2026?

Ofgem sets the price cap every quarter, and from 1 July the unit rate for electricity rises to 26.11p/kWh. That’s a 6% jump in just three months. It won’t cause energy bill chaos for most homes, but it continues a clear pattern: grid electricity costs considerably more than it did two or three years ago.

A typical home using around 3,500 kWh of electricity per year is now spending over £900 on electricity units alone — before standing charges. And the picture for October onwards remains uncertain. Wholesale energy prices stay volatile, and there’s no guarantee the cap falls meaningfully in the next review.

Planning around a stable grid electricity price has become harder than ever.

How much can solar panels cut your bills?

A 4kW solar panel system on a typical UK home generates between 3,200 and 4,000 kWh of electricity per year. At 26.11p/kWh, that’s a potential saving of up to £1,044 per year — purely from electricity you generate yourself and don’t have to buy from the grid.

In the North West, generation is lower than in the south of England, but still very worthwhile — particularly in the summer months when panels produce at their peak. Any electricity you don’t use gets exported back to the grid, earning you money through the Smart Export Guarantee. Combined with self-consumption savings, a well-sized solar system can pay for itself faster than many homeowners expect.

You can get a personalised estimate in minutes using our solar quote tool.

Why battery storage makes solar work harder

The issue with solar panels alone is that most generation happens during the day — when many households are out and need electricity least. Without storage, a significant portion of what your panels produce gets exported at a relatively low rate, while you’re still buying from the grid in the evenings.

A battery storage system changes that. Excess solar electricity charges the battery during the day, and you draw on it in the evening instead of paying the grid. A 5–10kWh battery covers most of a typical family’s evening usage. At current electricity prices, that shift can add £200–£550 per year in extra savings on top of what solar alone delivers.

There’s another benefit if you’re on a time-of-use tariff like Octopus Go or Agile Octopus: a battery can charge overnight at off-peak rates as low as 7–9p/kWh and discharge during peak hours — cutting your grid costs even when the sun isn’t shining. Grant Store is an Octopus Trusted Partner, so we can help you get the most from Octopus tariffs alongside your installation.

Is now a good time to install?

There are a few reasons why summer 2026 is a particularly good moment to look at solar and battery storage.

First, 0% VAT on solar panels, battery storage, and their installation is confirmed until 31 January 2027. On a typical combined system costing around £12,000, that’s a saving of roughly £2,000 compared with standard 20% VAT — a real reduction in upfront cost.

Second, the Government’s Warm Homes Fund — part of the £15 billion Warm Homes Plan — is set to offer low or zero interest loans for solar and battery installations from 2027. Getting your system in now means you start saving from summer 2026 rather than waiting another 12 months in a queue.

And third, every quarter that passes at higher electricity prices is a quarter your solar panels aren’t working for you. The July cap rise is a clear signal that delay has a real cost.

What’s the bottom line?

Solar panels and battery storage are not a luxury upgrade. At 26.11p/kWh, every unit of electricity you generate yourself and store for later is worth more than it’s ever been. A properly sized system pays back steadily, year on year, regardless of what Ofgem announces next quarter.

If you’ve been waiting for the right moment, July 2026 is a reasonable place to start.

Grant Store is an MCS-certified solar and battery storage installer based in Wigan, covering the North West and beyond. Get a free, no-obligation estimate using our solar quote tool or battery storage quote tool, or call us on 01942 918844 to speak with the team.