October 2025 energy price cap, what it means for solar and battery savings
Ofgem has confirmed a 2 percent rise in the price cap for 1 October to 31 December 2025. A typical dual fuel household paying by Direct Debit will see an annualised bill of about £1,755, up from £1,720. Electricity averages 26.35 p/kWh with a 53.68 p/day standing charge for this period. Gas averages 6.29 p/kWh with a 34.03 p/day standing charge. Your bill depends on how many units you use.
What Ofgem announced today - 27/8/2025
• Cap up 2 percent for Q4 2025. Typical bill now £1,755 a year for a household with average use. Ofgem
• Electricity average rates this quarter. 26.35 p/kWh and 53.68 p/day standing charge. Gas average 6.29 p/kWh and 34.03 p/day. Regional and meter variations apply. Ofgem
• Context for households. Government changes to the Warm Home Discount expand eligibility. The £150 payment helps more low income homes and is funded through bills, adding roughly £15 to a typical annual bill. MoneySavingExpert.comThe Guardian
• Next publication date. Ofgem’s next update covers 1 January to 31 March 2026 and will be published by 25 November 2025. Ofgem
Why solar and batteries can outpace a capped tariff
The cap limits unit prices, not your total spend. Solar cuts daytime import. A battery lets you use more of your own solar in the evening and can align usage with smart tariffs that automate battery behaviour. Many solar friendly tariffs target an early evening peak window around 16:00 to 19:00 for higher export and encourage cheap charging at other times. Octopus Energy+1
Quick links for deeper guidance
Photovoltaics overview: https://solarpanelinstallers.co.uk/photovoltaics/
• Battery storage overview: https://solarpanelinstallers.co.uk/battery-storage/
• Micro inverters: https://solarpanelinstallers.co.uk/solar-micro-inverters/
• EV charging at home: https://solarpanelinstallers.co.uk/electric-car-home-charger/
• Is battery storage worth it in 2025: https://solarpanelinstallers.co.uk/is-battery-storage-worth-it-uk-2025/
• Add a battery to existing solar: https://solarpanelinstallers.co.uk/can-i-add-a-battery-to-my-existing-solar-what-to-check-before-you-buy/
a Worked example for October to December 2025
This simple example uses electricity only to show the pattern effect. It uses Ofgem’s average electricity rates for Q4 and assumes 92 days in the quarter. Always check your supplier rates.
Assumptions
• Consumption this quarter. 1,000 kWh.
• Cap average electricity unit rate. 26.35 p/kWh.
• Electricity standing charge. 53.68 p/day. Ofgem
Case A, no solar, no battery
• Energy units. 1,000 kWh × £0.2635 = £263.50
• Standing charge. 92 days × £0.5368 ≈ £49.39
• Total. ~£312.89
Case B, 4 kWp solar, no battery
• Quarter generation estimate. ~450 kWh.
• Self consumption without a battery. ~35 percent = ~157.5 kWh used directly.
• Grid import. 1,000 − 157.5 = ~842.5 kWh.
• Energy units. 842.5 × £0.2635 ≈ £222.00
• Standing charge. ~£49.39
• Total. ~£271.39
• Saving versus Case A. ~£41.50 for the quarter, export income not included.
Case C, 4 kWp solar + 5 kWh battery
• Self consumption rises to ~70 percent of generation = ~315 kWh.
• Grid import. 1,000 − 315 = ~685 kWh.
• Energy units. 685 × £0.2635 ≈ £180.50
• Standing charge. ~£49.39
• Total. ~£229.89
• Saving versus Case A. ~£83.00 for the quarter, export income not included.
• Smart solar tariffs can improve results by automating charge and discharge around the 16:00 to 19:00 peak and lower rate periods. Actual rates vary by region and product. Octopus Energy+1
Practical guidance for Q4 2025
Confirm your rates today
Open your supplier app and note your current unit rates and standing charges. Compare the cap averages to your region and meter type. OfgemEstimate the 2 percent effect
A quick rule of thumb is to add £2 for every £100 you currently spend across a year. The exact change depends on your usage split between electricity and gas.Consider a solar friendly tariff
If you have solar and a battery, look at Flux or Intelligent Octopus Flux style products that automate battery charge and discharge and pay more for early evening export. Check the 16:00 to 19:00 peak window and your export eligibility. Octopus Energy+1Size the battery to your evening use
Right size first. Many homes benefit from 5 to 10 kWh. Use your half hourly data where available.Optimise the array if you have shade
Panel level optimisation with micro inverters helps roofs with multiple orientations or shading. See our micro inverter guide.Plan for EV charging
Coordinating the battery, solar and a smart home charger can lower both home and transport costs.
FAQs
What exactly changed on 27 August 2025?
Ofgem raised the cap by 2 percent for 1 October to 31 December 2025. Typical annualised bills are now about £1,755 for average use, with average electricity at 26.35 p/kWh and 53.68 p/day standing charge. Gas averages 6.29 p/kWh and 34.03 p/day. Ofgem
Does a price cap mean my bill is capped?
No. The cap limits the price per unit and the daily standing charge. Your total bill depends on how many units you use. Ofgem
How do I estimate the 2 percent rise for my home?
As a quick guide, add £2 for every £100 you currently spend per year. For a more accurate view, multiply your expected units by your new unit rates and add the standing charges for your area.
Will Warm Home Discount help this winter?
Yes. The Government has widened eligibility so more low income households receive the £150 payment. It is funded through bills, adding about £15 to a typical bill. Check eligibility and supplier participation. MoneySavingExpert.comThe Guardian
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