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

October 2nd, 2025
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.

Fuel Unit rate Standing charge Annual cost at average use
Electricity 26.35p per kWh 53.68p per day £1,185.75
Gas 6.29p per kWh 34.03p per day £754.80
Total £2,260.55

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.

Can green energy
      lower electricity bills more than gas bills

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

Will green energy cut dual fuel energy bills?

It can bring down the cost of electricity at first. But gas is still linked to fossil fuels until there is a switch to new heating systems that use renewable energy.

How does the price cap affect dual fuel tariffs?

The cap puts a limit on standard variable tariffs, but it does not set a limit for your whole bill. Your bill will change based on how much you use.

Should I choose a fixed or variable dual fuel tariff?

If you want things to stay the same, choose a fixed plan. If you think wholesale prices will go down, a variable tariff can help you save more money.

Do smart meters help with green energy tariffs?

Yes. They help with correct billing and can give you flexible renewable energy tariffs.

Can solar panels cut my dual fuel costs?

Yes. If you make 3,000 kWh of power in a year, you could save almost £800 on your electricity bill.

Are dual fuel deals always cheaper than single fuel?

No. Low-gas homes or homes with EV tariffs may get more savings when they use single fuel.

How did the energy crisis affect dual fuel prices?

Gas shortages pushed up wholesale prices. Because of this, dual fuel bills went up. Renewables helped to keep the cost of electricity steadier. But gas is still expensive.

Which suppliers offer the cheapest dual fuel tariffs?

Tariffs can go up or down often. Fixed deals might change at any time, and the energy price cap for standard variable tariffs is checked every few months. You should always compare energy prices using your real use. This is the best way to find the cheapest energy deals. Use the energy price cap to help look at variable tariffs and save money.

What are the current dual fuel prices in different UK regions?

Costs can change in different areas because of local network fees. Some places pay between £50 and £200 more each year than others, even if they are on the same tariff. Use an energy comparison based on your postcode to find out about local prices.

Is customer service better with green dual fuel energy plans?

Some suppliers might put more focus on customer service teams, but the main benefit most people get is eco-friendly supply. The service may not be much better or different than what other companies offer.

Will renewable heating systems replace dual fuel?

Over time, yes, the use of gas in dual fuel homes may go down. Heat pumps and district heating can help with this. But most people in the UK today still use boilers in their homes.

How do regional energy prices affect dual fuel tariffs?

Regional network costs are not the same everywhere. So, even if two houses have the same energy use, they can pay between £50 and £200 more or less in a year. Where you live can change what you pay for network costs.

Where can I find the cheapest regional dual fuel deals right now?

Use an energy comparison tool that works with your postcode and your recent bill. This tool helps you find the cheapest dual fuel tariffs in your area. You can see both fixed and variable choices with this energy comparison.

Do dual fuel energy providers offer region-specific discounts?

Yes. Some suppliers change the price or give extra benefits in some areas to be more competitive. But these deals change a lot, so it is important to check and compare all the time.

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