Impact of Green Energy on Dual Fuel Energy Costs in the UK

A dual fuel tariff lets you have gas and power in one energy account. You use one energy supplier for both. Many people like this because it’s easy. There is only one point of contact if you need help. Sometimes you get a dual fuel discount, too.

The UK is spending a lot on renewable energy like wind and solar. A lot of people want to know if using green energy will give them cheaper dual fuel plans. This can change, depending on how the energy market, wholesale prices, and new rules set by the government work with the way people use energy at home.

How does the energy price cap affect dual fuel bills?

The energy price cap is something that Ofgem sets. It puts a limit on the highest unit rates and standing charges that suppliers can ask for when you are on standard variable tariffs. But it does not put a limit on your full bill. The amount you pay will be based on your energy usage.

Ofgem has shared its numbers for what an average household can expect to pay from July to September 2025.

This shows why dual fuel is still impacted by both wholesale prices and network costs. Even as more green energy comes into the grid, the system is still affected by changes in those costs.

Will renewable energy bring cheaper dual fuel tariffs?

Renewable energy like wind, solar, and hydro now gives the UK most of its electricity. By 2024, wind and solar made up more than 40% of the UK’s power. Over time, using more renewable energy should mean the UK does not need as much imported gas. This helps lower the country’s risk when global wholesale prices change.

But in the short term:

• Network costs, which include building wind farms, offshore links, and solar capacity, are now being added to energy bills.
• Standing charges have gone up. This is to cover money spent on infrastructure.
• Gas bills stay linked to fossil fuels. They will stay this way until people move away from using boilers for heating.

For a lot of homes, renewable growth is likely to bring steady dual fuel costs, not quick price drops.

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How do fixed and variable tariffs respond to green energy?

• Fixed tariff: This is where your unit rates stay the same for 12 to 24 months. If there is more renewable output and prices go down, you could end up paying more than someone with variable tariffs. But with fixed deals, you are protected if prices go up.
• Variable tariffs: These change with the energy price cap. If wholesale prices drop because there is more energy from renewables, you and other people can save money fast.

Choosing between the two will be about how much certainty you want for your energy bill. You will also need to think about if you think the wholesale prices will go down.

Can green energy lower electricity bills more than gas bills?

Yes. Electricity is easier to “green” than gas because wind and solar already feed into the UK grid, reducing reliance on imported fuels. Gas remains tied to fossil fuels until homes switch to alternatives like heat pumps.

Worked example – average household with rooftop solar

• Electricity use = 4,500 kWh
• Gas use = 12,000 kWh
• Ofgem July 2025 rates: 26.35p/kWh (electricity), 6.29p/kWh (gas)
• Standing charges = £320 per year

Without solar

• Electricity = 4,500 × 26.35p = £1,185.75
• Gas = 12,000 × 6.29p = £754.80
• Standing charges = £320
• Total dual fuel bill = £2,260.55

With solar (3,000 kWh produced annually)

• Grid electricity use = 1,500 kWh × 26.35p = £395.25
• Gas = £754.80
• Standing charges = £320
• New dual fuel bill = £1,470.05

Annual saving = £790.50

Worked example – high-use household with EV charging

• Electricity use = 7,000 kWh (including EV charging)
• Gas use = 12,000 kWh
• Ofgem July 2025 rates as above
• Standing charges = £320 per year

Without solar

• Electricity = 7,000 × 26.35p = £1,844.50
• Gas = £754.80
• Standing charges = £320
• Total dual fuel bill = £2,919.30

With solar (3,000 kWh produced annually)

• Grid electricity use = 4,000 kWh × 26.35p = £1,054.00
• Gas = £754.80
• Standing charges = £320
• New dual fuel bill = £2,128.80

Annual saving = £790.50

Summary:

• Solar provides similar absolute savings in both scenarios (~£790).
• For the average household, that’s a cut of about 35% on electricity bills.
• For the EV household, it’s a cut of about 27% on electricity bills.
• Gas costs remain the same until heating moves to renewable options.

This shows that green energy delivers the biggest household savings on electricity, while gas remains the limiting factor in dual fuel economics.

How do household habits change the impact of green tariffs?

• If you get regular meter readings or use a smart meter, you do not get charged extra.
• Paying by monthly direct debit is usually a cheaper way than using cash or cheque.
• If you use less energy at busy times, it may help save money. You may also get green energy deals if suppliers offer plans with wind and solar power.
• If your home has electric vehicles, you can save with electricity tariffs that use overnight wind energy.

For homes that use a lot of energy, picking a fixed tariff can still be the best deal. This is true during winters when prices go up and down a lot.

Are dual fuel deals still better than single fuel?

Dual fuel is still the best choice for most people. But single fuel can sometimes be cheaper than dual fuel for some.

• If you use gas only a little, picking separate electricity tariffs, like those with green energy, may help you save more money.
• A few energy companies give you special tariffs for electric vehicles or green energy that you cannot get with dual fuel plans.
• But for most homes with average use, dual fuel is often simpler. It also tends to give the cheapest tariff because of bundle discounts.

How will the energy crisis and renewables affect future costs?

The energy crisis between 2021 and 2023 led to UK bills hitting new highs. This happened because there was a shortage of gas all over the world. Even though renewable energy is growing, the UK still needs gas for heating. Because of this, gas bills will keep having a big impact on dual fuel costs.

The future of dual fuel in the UK will likely mean:

• The price of electricity may get lower as more wind and solar power are used.
• Gas will cost a lot until many people start using renewable heating in their homes.
• There will be more flexible plans or variable tariffs that change with how much renewable energy is working, which may help homes use power in a smarter way.

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What should households do before switching to a new supplier?

1. Get your recent bill. You need it to see your real energy use.
2. Use an energy comparison tool. It helps you see and compare energy tariffs.
3. Look at the unit rates. Check the daily standing charges. Find out if there are any exit fees.
4. Make sure the new supplier is in the Energy Switch Guarantee.
5. Some suppliers have special discounts. Watch for these, especially for green energy.

The best way to find a good dual fuel deal is to often check and compare energy prices in your area. When you compare energy prices by postcode, you can see which dual fuel offers are good for you. This helps you get the best dual fuel deal and save money over time. It is always a good idea to check now and then for new deals or any changes in what companies give to their customers.

FAQs About Green Energy and Dual Fuel Costs