People looking to invest in solar panels to combat soaring energy prices will be hit with a hidden fee of more than £200 from this month, The i Paper can reveal.
The Government is throwing its support behind solar as a way to cut bills by offering low-interest grants and loans towards installations, including paying for installations for low-income families up to a cost of £12,000.
But while demand for solar panels is soaring, customers are being hit with a new fee for connecting to the National Grid.
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As part of any installation, customers must complete a G98 or a G99 application, a registration for connecting solar panels or battery systems to the grid. The two different types of application relate to the size of the system that is being connected.
Until now, this was free for most customers. But from 1 April, National Grid says it will be charging £183 plus VAT for the service.
National Grid said the cost had previously been absorbed by other customers and the new fee is being introduced to ensure people are treated more “fairly and consistently” from now on.
However, John Bloomfield, who runs Green Energy Solar in South Wales, is concerned that the charge may have an impact on business and is sending “mixed messages” to consumers.
John Bloomfield, owner of Green Energy Solar, says he does not understand why the new fee is being introduced
“It’s confusing to homeowners,” he told The i Paper. “You feel like the general message is ‘do it [install solar panels], this is the right thing to do, reducing carbon emissions, increasing your energy security’.
“But then National Grid are saying ‘we want to charge you to do it’. It’s a shame they are doing it, I don’t understand their reasoning.”
Bloomfield mainly installs solar systems and batteries to private homeowners and small businesses and said demand has gone “totally crazy” with orders more than doubling between February and March.
He thinks the new fee is unlikely to put customers off an installation in the current climate but says it will create extra admin that could lead to delays.
He also said communication from National Grid on the issue has been unclear. “It complicates the process for us a little bit because.. we can’t just get the acceptance [from National Grid] and go ahead,” said Bloomfield.
“We have to get the acceptance with the cost and then give that to the customer and make sure they accept that.”
Installers have been waiting for clarity from National Grid to be able to inform their customers, he added.
The grid was privatised by Margaret Thatcher’s government in 1990. In 2023, shareholders received £1.6bn in dividends and profits increased to more than £2bn in its latest half-yearly update posted last year. As a result, campaigners have long called for the company to be nationalised.
Johnbosco Nwogbo, from lobby group We Own It, told The i Paper: “It’s something we’ve been demanding for several years.
“If you are incentivizing homeowners, or small businesses, to go into solar generation on one hand, but then disincentivising them by charging them a fee on the other – it’s not a completely joined-up policy.”
A National Grid spokesperson said: “We’ve made changes to how we handle some solar PV connection requests to help improve customer service and ensure a more consistent experience.
“From 1 April, we’re applying an assessment fee of £183 including VAT to certain connection offers. This reflects the detailed engineering and safety assessment work we already carry out and ensures customers are treated fairly and consistently.
“Until now, this work has still taken place, but the cost has effectively been absorbed and covered by other customers. Introducing the fee means that those requesting this service are charged fairly for the work involved.
“For schemes connecting to our low‑voltage network, the fee will only be payable if the customer chooses to accept the connection offer.”
A spokesperson for the Department for Energy Security and Net Zero said: “We are making solar cheaper and easier to install with our £15 billion Warm Homes Plan, the biggest homes upgrade programme in British history.
“With grants and low interest loans, alongside new plug-in panels soon to hit supermarket shelves, we are ensuring everyone can take advantage of the benefits of home solar technology.”
