Powering down your bills: why UK energy prices are so high and how solar can help

The short version

UK energy prices are a function of global gas markets, network costs, policy levies and supplier margins. Even when wholesale costs fall, much of your bill is fixed by other components — which is why bills haven't dropped as quickly as headlines suggest.

What's actually in your bill

A typical electricity bill is made up of:

• Wholesale energy costs — what your supplier paid for the power
• Network charges — moving electricity from generators to your home
• Policy costs — environmental and social levies
• Operating costs and margin — your supplier's running costs and profit
• VAT — applied on top

When gas prices spike, wholesale moves first. When they fall, the rest of the stack often holds bills up.

Where solar changes the maths

Every kWh you generate and use yourself is a kWh you don't buy from the grid. That means:

• Direct savings on imported electricity
• Export earnings for surplus power sent back to the grid
• Battery shifting — store daytime solar for expensive evening peaks

Pair this with smart tariffs and software-led optimisation, and the savings add up.

How Lumo amplifies the benefit

Lumo continuously optimises when to charge, discharge and export — based on tariffs, weather, and grid signals. That means your system is working harder for you, without you having to think about it.

We also unlock access to flexibility markets, where households can earn additional income for supporting the grid at peak times.

What to do next

• Already have solar? Get Lumo free and start saving more from your existing system.
• Looking to install? Find an accredited installer we trust.