Energy Price Cap from 1 October 2026: What It Means for Solar and Battery Owners

Ofgem's price cap goes up 4% on 1 October, but almost all of the rise is on gas. The price of a unit of electricity barely moves, and that is the figure that decides what solar and a battery are worth to you.

What Ofgem announced

On 26 August Ofgem confirmed the price cap for October to December 2026. For a typical household paying by Direct Debit it rises 4%, from £1,663 to £1,723 a year. The average electricity unit rate across England, Scotland and Wales is 26.32p per kWh with a standing charge of 54.83p a day. Gas is 7.97p per kWh with a standing charge of 29.68p a day.

Ofgem says higher wholesale gas prices are the main reason, with gas bills rising by about 8%. Electricity stays broadly stable because the government has removed VAT from domestic electricity for six months. Ofgem estimates the cap would have been around £45 higher without that.

If you already have solar panels

Every unit of your own solar electricity that you use is a unit you do not buy at about 26p. That figure has hardly changed, so the value of using your own generation is much the same this autumn as it was in the summer. The standing charge is paid whatever you generate.

What you are paid for exporting is separate from the cap. Suppliers set their own rates, and they have moved this year, so it is worth checking yours. Our article on Smart Export Guarantee rates explains how they work.

If you have a battery

The cap applies to standard variable tariffs. Off-peak and time-of-use tariffs are priced by each supplier, and Ofgem notes that many suppliers offer cheaper electricity outside peak times to customers with a smart meter.

A battery earns its keep on the gap between what you pay in the day and what you pay overnight. With a day rate around 26p and the 7p overnight rate we use in our examples, that gap is about 19p for every unit you shift, before battery losses. Our battery savings calculator lets you put in your own two rates, and our guide to time-of-use tariffs explains the options.

If you are thinking about solar

The case for generating your own electricity rests on the unit rate, and the unit rate has not come down. The VAT cut on electricity is temporary and is due to end on 31 March 2027. Nobody knows yet what the cap will be after that.

Our solar and battery savings calculator uses an import rate of 24p per kWh, a little below the current cap, so its estimates are on the cautious side. You can change the rate to match your own tariff under Advanced.