The UK Government’s decision to reform the electricity market has been met with strong support from the solar industry.
The reforms prioritise fairness, affordability, and long-term energy security. Key elements include maintaining a single national wholesale pricing system, plans to speed up grid upgrades, and proposals to cut household bills and attract private investment.
Solar Energy UK welcomed the decision to rule out regional pricing zones, which the organisation argued would have fragmented the market and deepened regional disparities.
Instead, the Government will focus on a Strategic Spatial Energy Plan, more predictable transmission charges, and improved system-wide efficiency.
“This is a very positive day for both the solar and battery energy storage industries,” said Chris Hewett, Chief Executive of Solar Energy UK.
“Although there were good arguments either way, we had opposed zonal pricing as it would have introduced uncertainty and disrupted investment. It would also have been poorly timed, coming just as the wind, solar and battery sectors alike need to expand rapidly.”
A consultation on improving the role of battery storage in the energy system is also expected. Industry figures hope this will further grow the battery market and reduce constraint payments – costs incurred when surplus renewable electricity can’t be used due to grid limitations.
“The way is now clear for what we expect will be the largest contracts for difference auction yet, set to be held in a month’s time,” said Hewett.
“The seventh allocation round will set the stage for meeting the Government’s growth targets for clean energy for 2030, delivering cheaper, cleaner and more secure power.”
