The numbers: October 2026 cap
Ofgem confirmed the October 2026 price cap on 26 August 2026. For the period 1 October to 31 December 2026, the key figures are:
| Item | October 2026 | July 2026 |
|---|---|---|
| Typical annual bill (dual-fuel, DD) | £1,723 | £1,663 |
| Electricity unit rate | 26.32p/kWh | 26.11p/kWh |
| Gas unit rate | 7.6p/kWh | 7.33p/kWh |
Source: Ofgem October 2026 price cap announcement. GB averages for direct-debit customers. Regional rates vary.
What changed vs July 2026
The cap rose 4%, driven by higher wholesale gas prices following the US-Iran conflict. But the government removed VAT on domestic electricity bills (5% to 0% from 1 October), which offset part of the increase — so electricity unit rates barely moved while gas and the headline bill rose.
The headline: the cap rose by 4%. For a typical household that's £60 a year.
Why the cap changed
Wholesale gas prices surged around 61% over the past three months, driven by the US-Iran conflict and shipping disruption in the Middle East. This feeds directly into the cap. The government removed VAT on domestic electricity (5% to 0%) from 1 October, which softened the electricity rate but not gas.
What it means for solar
Here's the key insight for solar owners and anyone considering panels: every price cap rise increases the value of the electricity you generate yourself.
When the import rate rises from 26.11p to 26.32p/kWh, each kWh your panels produce — and you use yourself — saves you more. That directly shortens your payback period and increases your 25-year return.
A typical 4 kW system generating ~3,400 kWh/year (the UK average of 850 kWh/kWp) with ~45% self-consumption saves roughly £403 in year one at the new rate — up from ~£400 at the July rate. Over 25 years that compounds with every future cap rise.
See your exact numbers with our savings calculator.
How to protect your bill
- Generate your own electricity — solar locks in your own power at a fixed cost, immune to future cap rises.
- Use electricity during the day — run appliances when your panels are generating.
- Add a battery — store daytime generation for evening use, lifting self-consumption to ~75%.
- Pick a good SEG tariff — earn up to 15p/kWh on what you export.
See what solar saves you at the new rate
Run the numbers with the October 2026 cap built in.
Calculate my savings →FAQ
When does the October 2026 price cap take effect?
From 1 October to 31 December 2026.
Does the price cap affect my solar savings?
Yes — a higher import rate means each kWh you self-consume saves you more, improving your payback and lifetime return.
Where can I check my exact regional rate?
Ofgem publishes regional unit rates. Your bill shows your exact rate, and regional rates vary by distribution area.
What is the October 2026 energy price cap?
The October 2026 price cap is £1,723 for a typical dual-fuel household paying by direct debit, running from 1 October to 31 December 2026. Electricity is 26.32p/kWh. This is a rise of 4% compared to the July 2026 cap.
How much will my electricity cost per kWh in October 2026?
26.32p/kWh under the October 2026 cap (GB average for direct-debit customers), a rise from 26.11p/kWh in July 2026.
Does a higher price cap make solar panels more worthwhile?
Yes. Every price cap rise increases the value of the electricity you generate yourself. If the cap rises, each kWh your solar panels produce saves you more, which shortens your payback period. A 4% rise in the cap typically improves solar payback by roughly the same percentage.
Sources: Ofgem October 2026 price cap announcement. Regional rates vary — confirm your own rate on your bill.
Disclaimer: this guide is for general information only and is not financial advice. Rates are GB averages; your actual rate depends on your region and payment method.