It’s not ‘green vs cheap’, the benefits of new energy can be shared with everyone

We must reframe the energy debate away from ‘green versus cheap’. With the right tools and the right systems, the UK could change its relationship with energy to one where everyone in the UK could reduce their bills, and where energy could become a source of income for homes and businesses.

We know almost two-thirds of UK consumers support net zero and value the benefits of a clean energy transition, but even with this support we’ve seen the rise of a false contradiction – one that asserts there is a trade-off between energy being affordable or sustainable. Done correctly, this is not a compromise we must make.

Because as the energy system evolves and there is a concerted effort to leverage cheap renewables, storage and shifting demand will reduce the costs of electricity, with benefits that offset the costs of building everything we need.

Of course, the background to all this is that energy is an essential good, but one that has become increasingly precarious: with estimates of more than six million homes across the country in fuel poverty and 10,000 people dying each year from health conditions which are the result of living in a cold home.

At E.ON, our approach is three-fold: solving problems in our energy system using innovative solutions and products, providing access to these solutions to underserved groups, and using these solutions to create value for the whole energy system which can be shared with these groups, lowering their bills.

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The massive shift is creating a new energy system where consumers can generate and store energy themselves – and being rewarded for playing a role.

Examples include our work with Northern Powergrid to tackle an issue around grid constraints and getting electricity to areas with limited grid capacity. By putting batteries into customers’ homes – helping to lower bills by up to 15% we are also reducing the cost of reinforcing the local grid and reducing overall system costs for everyone. A win-win.

Another is looking at solar for domestic flats, where it has often been difficult and costly to split the benefits between flats. We’ve invested in Australian start-up Allume and its Solshare technology which splits rooftop solar among flats in the same building, enabling each resident to benefit from solar systems on their roof.

Our first project with Allume fitted solar panels at The Belmont residential home in East Sussex, sharing a 50kWp peak system between 25 residents while also fulfilling the landlord’s energy needs. This innovative approach reduces maintenance costs for communal areas and benefits individual apartment owners.  

And when it comes to increasing the uptake of rooftop solar, it’s often the case that energy consumption is much lower than the roof could generate if we covered it fully – meaning customers could install more panels which could pay back more quickly if the excess energy could be shared. Our community energy pilot at St. Luke’s Primary School in East London generates solar energy for the school, with the surplus power allotted to nearby homes at a discount – lowering bills for both.

When it comes to supporting vulnerable customers, often they need more than a discount on their bills, but a reduction in energy use is difficult without a bevy of improvements. Our pilot with Coventry City Council offers direct financial support and energy efficiency measures, investment in batteries, and a time-of-use tariff to help lower energy use and bills long-term – saving £300 per year, and giving them agency when it comes to energy.

Collaboration is at the heart of our approach. Partnering with local authorities, tech start-ups, and community organisations, we can bring expertise and resources to drive meaningful change that not only reduces carbon emissions but also provides tangible financial benefits to energy users.

By embracing innovation and collaboration, and trying to make energy work for everyone, we can harness the power of energy to drive positive social change and create a more equitable energy system for all – creating a system where no one is left behind.

José Davila is E.ON UK’s Director of Strategy and Innovation. His career includes more than 25 years in energy, water and utilities, with spells in innovation consulting. José has worked in FTSE-100s and multinationals, run his own business and taken a sustainability start-up to first revenues.