How energy prices are changing on 1 July 2026

Energy bills are back in the headlines after Ofgem confirmed that the energy price cap will rise by 13% from 1 July 2026.

For a typical household paying by direct debit, annual energy costs will increase by around £221, taking the average bill to approximately £1,862. The cap limits the maximum amount suppliers can charge for each unit of gas and electricity, as well as daily standing charges, so households that use more energy will pay more overall.

The challenge for consumers is that the cap is reviewed every three months. This means prices can rise or fall in July, October, January and April, making it difficult to predict future bills. Ultimately, these changes are driven largely by wholesale energy markets, which remain outside the control of individual households.

Why Do Energy Prices Keep Rising?

This latest increase is driven mainly by higher wholesale gas prices on global markets, largely the result of ongoing conflict in the Middle East. Gas does not just heat homes; it also sets the price of grid electricity for much of the year, so when gas prices rise, the cost of the power coming into your home tends to follow.

The difficult part is that none of this is within your control or your supplier’s. Prices fell earlier in the year, then climbed again in July, and they could move in either direction next quarter. Building a household budget around a figure that changes every three months is far from easy.

How Solar Panels and Batteries can help 

Solar panels produce most of their power during the day, but many of us use the most electricity in the evening, once the sun has gone down and grid prices are at their highest. A home battery closes that gap. It stores the free electricity your panels make during the day so you can use it in the evening, exactly when buying from the grid costs the most.

A battery can also charge up on cheaper off-peak electricity and run your home through peak hours, helping you get even more value from a smart tariff. For many of our customers, adding storage is what makes the biggest difference to their bills. One customer who recently added a third battery told us the system has been “highly successful in terms of utilising free solar electricity to save costs.”

Is Now the Right Time to Invest?

Energy prices have proven unpredictable over the past several years, and waiting for them to settle assumes that they will. The sooner you generate your own power, the sooner you start saving, and the more future price rises you avoid. Solar and battery storage is also long-term investment in your property, giving you more predictable energy costs year after year.

We know it is a significant decision, which is why we offer finance options to spread the cost, alongside a free, no-obligation survey so you can see exactly what your home could generate and save before you commit to anything.

See the Numbers for Your Own Home

Wondering how the maths stacks up for you? Use the calculator below. Pop in your current electricity spend and it will show you how much your bill could rise as prices climb, what a monthly finance repayment might look like, and how much you could save by generating your own power. Everything is an adjustable estimate, so feel free to have a play.