Solar Spotlight - Breaking the gas price link

The UK government has announced measures to reduce how volatile international gas prices push up UK electricity prices, even though a growing share of power is generated from renewables and nuclear.  

The new voluntary fixed‑price contracts for existing low‑carbon generators (covering around a third of GB power supply) would move more sustainable generation off gas-linked wholesale exposure, making bills more stable and improving revenue certainty.  

Electricity Generator Levy will be increased from 45% to 55% to capture more “excess profits” during gas-price spikes, reinforcing the policy push away from windfall wholesale pricing.  

This is positive because it means more solar for social housing, extra funding aims to support delivery of up to £57,000 solar installations this financial year. It’s also great news for rooftop solar expansion for education and current support will extend to 100 more schools and colleges for rooftop solar and renewables.  

There are also plans for more land to be made available for renewables. It would unlock renewables on the public estate, with potentially up to 10GW of capacity from a fraction of public land, powering over 5 million UK homes.  

Solar’s value isn’t just cheaper power, it’s price stability. The more generation that shifts to fixed-price frameworks, the less household bills are spiking by gas shocks.