Opinion: US-Iran conflict proves how vital clean energy is for the UK

• The wholesale price of gas has shot since the US-Iran conflict began, leaving UK billpayers at risk of losing out
• The National Grid needs to be upgrade, urgently
• The government needs to step up its efforts to get solar panels on houses
• There are still levies it can remove from energy bills

The US-Iran war has proved something beyond all doubt: it is critical that the UK produce its own homegrown clean renewable energy. Why? Because this is the only way to protect households from shocks in the price of wholesale gas caused by geopolitical crises.

Energy bills are very likely to go up, if forecasts are anything to go by. Cornwall Insight has predicted a July energy price cap of £1,801, a 10% jump, compared to its previous prediction of just a few pounds. That would cancel out any benefit from Chancellor Rachel Reeves’ Budget decision to remove green levies.

That means it’s very likely that it will become more expensive to heat your home, cook your meals and charge your laptop because the price of natural gas (currently 63% higher than it was before the war started) is unlikely to come down in price anytime soon.

This is a big problem for billpayers because the UK is extremely vulnerable to the international fossil fuel markets, largely because we don’t produce enough of our own energy and we don’t have enough storage capacity.

Here are some things that the UK needs to do to make sure international crises, such as the US-Iran conflict, don’t hurt consumers.

Rebuild the National Grid

This is a big challenge and one that is already underway. The National Grid is the operator of the entire UK gas and electricity transmission system. It owns and maintains roughly 4,300 miles of overhead lines, 22,000 pylons and more than 300 substations.

The National Grid‘s biggest challenge is simply congestion and the fact that it is not built for renewable energy. It was built in the 1950s to send fossil fuel energy generated in power stations, primarily coal, from big industrial areas, such as northern England and Wales.

Moving towards clean energy means building more infrastructure that can carry the power from either wind turbines or solar farms. That means upgrading the onshore electricity network as the current network doesn’t have the capacity to do so.

Another problem is the congestion and backlog. The National Grid currently has 700GW of power projects, most of which are clean energy, waiting to be connected. The delay is 15 years, in some cases.

This down to an outdated ‘first-come, first-served’ system that meant more recent, renewable, and ready projects are held up. For context, in 2023/24, more than 1,700 new project applications were made, mostly renewable.

Thankfully, some of this work is underway, and the National Grid is spending about £60bn from 2024-2029 to upgrade. On top of that the National Energy System Operator (NESO) is overhauling the outdated system and has started prioritising projects that are ready to connect. This should mean the there is more clean energy on the Grid and by 2030 there is the right infrastructure.

The US-Iran war shows how fragile energy supply chains are. Upgrading the National Grid is one of the best things the UK can do in response.

Make it as easy as possible to install clean energy tech

This is absolutely critical. The government has done well to prioritise renewables and commit to energy independence. That being said, it needs to do more.

• Extend 0% VAT – since 2022 there’s been 0% VAT on purchasing solar panels, batteries, and heat pumps. This is one of the best things ministers have done to encourage people to buy them. While it has brought down the price, this scheme will run out on the 31 March 2027. People won’t install clean technology if it’s too expensive, so the government should renew 0% VAT for as long as necessary.

• Get the Warm Homes Plan right – worth £15.2bn, the Warm Homes Plan is the biggest home upgrade plan in UK history. It’s going to offer zero-interest loans to help people install solar panels and batteries. Ministers insist it will be open to everyone, but it’s unlikely these loans will available until 2027. The Warm Homes Plan is a huge leap, and it could be a great one, but homeowners need clarity on when they can use it.
• Make all solar panel installers MCS certified – one of the best tools homeowners have at their disposal is the Smart Export Guarantee. This lets them sell surplus energy back to grid, helping make money from the solar panels. Unfortunately, this only applies if their installer is MCS certified. Solar panel installers don’t need an MCS certificate to operate, and this means the UK has some of the weakest regulation in Europe. Tightening up in this area will mean more people can access the Smart Export Guarantee.

Simply put, we need to generate more of our own energy, as proven by the US-Iran conflict. Helping people generate their own clean energy will protect their wallets.

Remove more green levies from electricity

This is an area the clean energy industry has long called for, removing green levies from energy bills to make electricity cheaper. It partially got its wish last Autumn when Rachel Reeves moved the Renewables Obligation into general taxation. However, the MCS Foundation believes there is still as much as £530 to be saved per household per year. This would potentially lift 900,000 households out of fuel poverty, with at least 5.8 million saving more than £300 a year.

It would also make it heat pumps a better option than gas boilers because currently electricity is still four times the price of gas and help make more households free from the uncertainty of wholesale gas markets.

This is a big point. The US-Iran war has shown that we rely too heavily on importing gas, so we need to use more electricity. Removing more levies not only makes it cheaper, but it encourages people to install heat pumps.

Summary

• The US-Iran war has shown how vulnerable the UK is to the price of gas
• The UK is still heavily dependent on the wholesale price of gas
• The government should make it easier to upgrade to clean technology
• The National Grid upgrade is hugely important and should be sped up
• More green levies should be removed from bills

Written By

Maximilian Schwerdtfeger Deputy editor

Max joined The Eco Experts as content manager in February 2024 and became deputy editor in 2025. He has written about sustainability issues across numerous industries, including maritime, supply chain, finance, mining, and retail. He has also written extensively for consumer titles like City AM, The Morning Star, and The Daily Express.

He has represented The Eco Experts on national television several times, including the BBC’s Sunday Morning Live and ITV Tonight .

In 2020, he covered in detail the International Maritime Organisation’s (IMO) legislation on sulphur emissions and its effects on the global container shipping market as online editor of Port Technology International.

He also explored the initiatives major container ports and terminals have launched in order to ship vital goods across the world without polluting the environment.

Since then, he has reported heavily on the impact made by environmental, social, and governance (ESG) practices on the supply chain of minerals, with a particular focus on rare earth mining in Africa.

As part of this, in 2022 Max visited mines and ports in Angola to hone in on the challenges being faced by one of the world’s biggest producers of rare earth minerals.

His most recent sustainability-related work came much closer to home, as he investigated the eco-challenges faced by independent retailers in the UK, specifically looking at how they can cut emissions and continue to thrive.

Max lives in South London and is an avid reader of books on modern history. He has also recently learned to play the game Mahjong and takes every opportunity to do so. He is also yet to find a sport he doesn’t enjoy watching.

More about

Reviewed By

Tamara Birch Newsletters and sponsored content editor

Tamara is a journalist with more than six years experience writing about environmental topics. This includes advising small businesses on cost-effective ways tom become more sustainable, from installing to solar panels and heat pumps and reducing waste. She has used her journalist and research skills to become highly knowledgeable on sustainable initiatives, issues, and solutions to help consumers do their bit for the environment – all while reducing monthly costs. Now, she’s using this experience to advise homeowners on the benefits of installing low-carbon technologies. She is also qualified in offering innovative initiatives to improve sustainability practices in businesses, from advertising to marketing and publishing.

Her passion for sustainability and eco-friendly solutions stems from a long obsession with nature and animals and ensuring they feel looked after. In her free time, Tamara enjoys reading fantasy novels, visiting the gym, and going on long walks in new areas.

More about