Savings & Costs14 August 20262 min read

Plug-In Solar vs Switching Energy Supplier: Which Saves More?

Is plug-in solar or switching to a cheaper tariff the better saving strategy? We compare both approaches with real UK data.

🇬🇧This article is relevant for the UK market

The Comparison

Both strategies aim to reduce your energy bill. But they work very differently and can actually complement each other.

Switching Supplier: What You Save

The Ofgem price cap (Q3 2026) is 24.5p/kWh. The cheapest fixed tariffs are around 21-23p/kWh. For a household using 2,900 kWh/year (UK average):

Tariff Rate Annual cost Saving vs cap
Ofgem cap 24.5p £711
Cheapest fix 21.5p £624 £87/yr
Octopus Flexible 23p £667 £44/yr

Maximum saving from switching: roughly £50-90/year.

Plug-In Solar: What You Save

An 800W system with 55% self-consumption:

Location Annual generation Self-consumed Saved at 24.5p
South England 920 kWh 506 kWh £124
Midlands 840 kWh 462 kWh £113
North England 800 kWh 440 kWh £108

Typical saving: £100-130/year — consistently more than switching supplier.

The Winner: Both

The best strategy is switching to a cheaper tariff AND installing plug-in solar. They're not competing strategies — they compound:

  1. Switch to the cheapest tariff to reduce the rate on electricity you still buy
  2. Install plug-in solar to reduce the amount you buy
  3. Consider a time-of-use tariff to maximise solar value

Cost Comparison

Strategy Upfront cost Annual saving 5-year saving
Switch supplier Free £50-90 £250-450
Plug-in solar ~£500-800 £100-200 £500-1,000
Both ~£500-800 £150-280 £750-1,400

Doesn't solar saving depend on my tariff rate?

Yes — higher tariffs mean bigger solar savings. On the Ofgem cap (24.5p), savings are solid. On Octopus Agile peak rates (35p+), they're even better.

What if energy prices drop significantly?

Solar payback lengthens if prices drop, but you're still generating free electricity. Switching savings would also shrink in a lower-price environment.

Should I switch supplier before installing solar?

Yes — get on the best tariff first, then add solar. Some tariffs like Octopus Flux are specifically designed for solar households.

Related reading

See how much plug-in solar could save you — with real data for your postcode.

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