UK Households Face Highest Electricity Costs in EU: Solar Energy as a Cheaper Alternative

For the first time, UK households are paying higher electricity prices than any EU country, with costs at 36p per unit in the latter half of last year. In contrast, gas prices are low at 8p per unit, ranking ninth among 27 EU countries. This disparity deters consumers from adopting cleaner technologies like heat pumps.

In early 2023, only the Dutch and Belgians paid more for electricity, but by the end of the year, the UK had the highest costs, followed by Germany at 35p per unit. Historically, UK electricity prices were average compared to the EU, making this a significant change.

High electricity costs, driven by gas prices and levies for insulation schemes and carbon taxes, now hinder efforts to reduce emissions. Gas sets the UK’s wholesale electricity prices 97% of the time, more than any other EU country, even before Russia’s invasion of Ukraine.

Solar energy, increasingly viable in the UK, offers a cheaper alternative. Despite being more efficient, the running costs of electricity-powered heat pumps are comparable to gas boilers because of high electricity prices. Rebalancing levies from electricity to gas could help, but government action has been slow due to concerns about potential cost increases for families.

Reducing electricity prices by increasing reliance on solar power could significantly lower bills and support the UK’s transition to a greener energy future, encouraging the adoption of cleaner technologies and helping to meet emission reduction goals.