Bills Set to Climb as Gas Prices Surge
British households are accelerating plans to install solar panels, heat pumps and electric vehicles as global energy markets react to the escalating crisis in Iran. Since the conflict began on 28 February, wholesale gas prices in Europe have risen by roughly 50%, pushing expectations that domestic energy bills will climb sharply this summer.
The next energy price cap is forecast to increase by 18% from July, lifting the typical annual dual-fuel bill to about £1,929. For many families, the prospect of higher monthly payments has triggered a wave of investment in home energy upgrades designed to cut reliance on fossil fuels.
Suppliers Report Spike in Demand
Octopus Energy, the largest supplier in Great Britain, reported that heat pump orders more than doubled in March compared with February. Sales of solar panel systems rose by nearly 80%, while new electric vehicle leases increased by more than 85%.
The country’s second-largest supplier, British Gas, has also seen a surge. Since late February, inquiries for solar panel installations have jumped by around 250%, alongside what the company described as a significant rise in interest in heat pumps.
Rebecca Dibb-Simkin, chief product officer at Octopus, said households are looking for long-term stability. “British families are tired of being held hostage by global fossil fuel prices,” she said. “We’re seeing a massive shift as people take matters into their own hands.”
Heating Oil Shock Drives Rural Switch
The spike in demand is particularly evident among households reliant on heating oil, which is not covered by Ofgem’s energy price cap. More than one million UK homes, primarily in rural areas, depend on oil for heating and hot water.
Allan Burgess of Great Yarmouth said he decided to replace his oil system with a heat pump after prices for 500 litres of heating oil rose from £250 to £700 within a week. “Once the war in Iran started I knew I had to switch,” he said. “I had absolutely no idea how high prices could go.”
Burgess secured installation within days, paying about £1,500 after applying the government’s £7,500 grant. With existing solar panels and battery storage, he now runs his heat pump largely without drawing extra electricity from the grid.
Resilience Over Reaction
Home retrofit specialist Furbnow reported a 42% increase in inquiries since the end of February. Nearly three-quarters of prospective customers have requested solar panels, more than half are exploring heat pump replacements for gas or oil boilers, and about 40% are considering insulation upgrades.
Chief executive Becky Lane said the surge reflects strategic thinking rather than panic. “Families have realised the most resilient thing they can do is reduce how much energy their home needs in the first place,” she said.
With energy markets tied to geopolitical tensions and the Strait of Hormuz remaining a critical chokepoint for fuel supplies, households appear increasingly willing to invest upfront to shield themselves from future price volatility.
