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The Shocking Change to Average Energy Bills

27th May 2021

Decarbonisation is a term that we hear daily working within the renewable industry.

In essence, the process of slowing climate impacts from unsustainable fuels is one of the guiding principles that keeps all of us busy.
Whilst most people agree broadly on the ambition to reduce carbon emissions, there is often a sea of information that consumers have to navigate, which can sometimes lead to misconceptions about the true impacts of decarbonisation.
One common objection for customers is that transitioning to net zero will spike energy prices. It's a fair assumption, given that the methods we have been using for years would have likely been the most cost-effective and simple solution.
This, however, doesn’t account for the explosion in new technology, which has rapidly brought down costs. As of 2020, Solar PV is the cheapest electricity the world has ever produced.

What does this mean?

To an end-user, this could just be another success story that doesn’t impact their lives. What we’ve found though, is that the drive towards lower carbon has actually reduced the average energy bill in the UK.
We dived into the data from the UK Government to compare the average electricity bill from 30 years ago with the most recent data.

1991 Avg Electricity Cost: £847
2020 Avg Electricity Cost: £707

If we then calculate the cost of inflation using the Bank of England’s handy calculator, we find that the modern value of that 1991 figure is a whopping £1,859.
This means that the average energy bill has dropped £1,152. That’s a whopping 61% in real terms.

How Customers Can Benefit Even More:

We have seen huge savings being made across the energy industry, with decarbonisation and technology improvements that come with it driving a lot of that change.
The next generation of savings that your customers can make will be through taking control of their domestic energy. With PV & Battery Storage solutions available to help them make that next step, they can get ahead of the game and make real savings for themselves and their families.


This article has been provided by Segen

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