A step in the right direction: why the Government’s relief on bills could be a win for clean energy

In one of his first acts as PM, the early announcement from Burnham’s new cabinet to remove VAT from domestic electricity bills is a welcome, early move in the right direction.

Although saving households an average of £45 a year might not sound like much, the announcement follows the earlier £135 reduction, which, taken together, will certainly make an impact. Against the backdrop of volatile global gas markets and average yearly energy bills of £1,800, a £180 reduction is a meaningful step forward.

More importantly, it’s a signal that lowering electricity costs is getting the national priority it urgently deserves. Lower electricity prices are the single biggest driver for electrifying heat, transport and modern housing and shoring up the UK’s energy security.

From temporary relief to structural reform

We welcome Miatta Fahnbulleh to the Department for Energy Security and Net Zero (DESNZ) and Angela Rayner back to the Ministry of Housing, Communities and Local Government (MHCLG) and are excited to see more measures like this and how the departments can align energy security with housing strategy to tackle fuel poverty at scale.

However, while the recent cuts will provide breathing space, permanent reductions in energy bills on a significant scale will come from generating clean power directly on our rooftops.

• Rooftop solar: Can cut household electricity bills by up to 40%
• Solar + battery storage: Can deliver annual savings of up to £700
• Closing the ‘solar disparity’: Over 5 million flat residents currently miss out on the benefits of solar, with rooftop arrays present on only 3.6% of flats compared to 7% of houses

Bringing together immediate relief through policy with practical solutions, like shared rooftop solar for multi-family homes, we can unlock hundreds of pounds in additional savings for households across the country.

With 5,000 homes already benefitting from SolShare, we look forward to continuing to collaborate with DESNZ and MHCLG to make clean, affordable electricity standard for every home in Britain.

Are you a landlord or social housing provider looking to future-proof your properties with shared solar and storage? Connect with the Allume UK team today to find out how we can support your next project.