Ed Miliband has emphasized that "there can be no energy security while we are so dependent on fossil fuels." In response to price shocks driven by conflict in the Middle East, the UK government is prioritizing solar generation as part of its strategy for energy security.
On 15 March, Energy Secretary Ed Miliband announced a series of measures to accelerate the rollout of renewables and strengthen national energy security. These include:
- Advancing the next Contracts for Difference (CfD) allocation round (AR8) to July this year
- Speeding up approval for ‘plug-in solar’ in the UK domestic market
- Applying lessons from the Fingleton Review, which focused on expediting nuclear power station development, to other infrastructure such as renewables
The government will also accelerate the Warm Homes Plan, offering grants and interest-free loans for solar power, batteries, and other home energy upgrades.
The seventh allocation round (AR7) of the CfD scheme concluded recently, securing 4.9GW of solar and 13.3GW of renewable generation capacity - the largest round to date. Miliband stated that bringing forward the next renewables auction will "give certainty to clean energy investors." The CfD support scheme provides financial security for renewables, making projects more attractive to investors.
Miliband reiterated, "Global events demonstrate there’s not a moment to waste in our drive for clean power because there can be no energy security while we are so dependent on fossil fuels." The fallout from US-Israeli strikes in Iran could impact the UK’s energy market due to its reliance on gas-powered generation. International gas prices have surged, drawing comparisons to the energy crisis triggered by Russia’s invasion of Ukraine, from which the UK is still recovering.
The UK energy market uses marginal pricing, where energy is priced at the cost of the most expensive unit, typically gas. This reliance on gas contributed to the severity of the Russia-Ukraine energy crisis in the UK.
Last week, the Climate Change Committee (CCC) published analysis showing that the total cost of transitioning to Net Zero by 2050 would be less than a single fossil fuel price shock like the 2022 energy crisis. Increasing renewable energy in the market would reduce reliance on gas, leading to lower prices.
Solar Energy UK (SEUK), the trade body for the solar industry, stated that unexpectedly scheduling AR8 for July 2026 "will have the biggest impact" and help remove "expensive" natural gas from the grid, ultimately reducing bills for everyone.
As wholesale market prices rise, small-scale solar PV offers a practical way for consumers and businesses to lower energy costs. Homeowners with rooftop PV panels, especially when paired with battery storage, see significant reductions in energy bills.
The government’s Great British Energy company has funded rooftop solar installations for public buildings, helping schools and hospitals manage energy costs. To make solar more accessible, especially for those unable to install conventional rooftop panels, plug-in solar panels will be sold in supermarkets at a lower cost. The UK Solar Roadmap included a review of the safety of this technology, which was previously banned in the UK but is widely used elsewhere. SEUK noted that savings from plug-in panels are smaller than traditional installations.
Nevertheless, SEUK chief executive Chris Hewett welcomed the government’s focus on solar, calling it "the fastest and cheapest solution to rising energy bills, at the smallest and largest scales."
The government-commissioned Nuclear Regulatory Review by economist John Fingleton, published in November 2025, found that an overly complex and bureaucratic system was hindering the nuclear industry. The government has since announced plans to implement the review’s findings to improve efficiency and speed up nuclear power rollout. Miliband believes these practices can also benefit other major infrastructure projects.
Alongside solar measures, the government is working with the Competition and Markets Authority (CMA) to increase monitoring of the fuel sector and prevent businesses from exploiting rising oil prices to price gouge customers. The rising cost of refueling internal combustion engine vehicles has led to warnings for consumers to limit driving, while the electric vehicle industry highlights the relative protection EVs offer from such price shocks.
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