Solar Energy UK
10 July 2025
Today’s landmark decision by the Government to reform Britain’s electricity market has received a warm welcome from the solar energy industry.[1]
The plan places fairness, affordability and long-term resilience at the heart of the transition to clean power. The commitment to retain a single national wholesale pricing system, alongside ambitious reforms to accelerate grid upgrades, boost investor confidence, and slash household bills, marks a critical step toward a secure, low-cost energy future for us all.
Solar Energy UK strongly supports the Government’s rejection of regional pricing zones, which would have made the price of power a postcode lottery, fragmenting the market and risking exacerbating regional inequalities. Instead, today’s package — centred on the forthcoming Strategic Spatial Energy Plan, predictable transmission charges, and system-wide efficiency — ensures every community shares the benefits of clean energy while providing the stability needed to unlock billions in private investment.
We also look forward to the launch of a consultation on how to make better use of battery energy storage in the electricity system. Aside from further stimulating the growth of the storage market, it should also help reduce constraint payments – compensation for when renewable energy generation peaks but cannot be used – by diverting unused power.
“This is a very positive day for both the solar and battery energy storage industries. 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.
“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. 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,” said Chris Hewett, Chief Executive of Solar Energy UK.
[1] Review of electricity market arrangements (REMA): Summer update, 2025
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Gareth Simkins
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