What net zero means for consumers 

What net zero means, how it affects you, and our role in helping to achieve it.

What is net zero

The UK government has committed to bringing greenhouse gas emissions down to a target of ‘net zero’ by 2050. This means we need to balance the amount of gases produced by fossil fuels and the amount we can remove from the atmosphere. Net zero is sometimes used alongside related terms for tackling climate change, including:

  • decarbonisation - the process of reducing carbon emissions
  • green energy - energy that comes only from renewable sources such as wind or solar
  • clean power - energy that produces little or no greenhouse gas emissions (this is different from green energy as it includes nuclear sources)
  • carbon neutral - when any carbon emissions produced are balanced by others being removed elsewhere

Fossil fuels such as coal, oil and natural gas can only be used to make energy once. When they are burned, they produce greenhouse gas emissions. One of the most effective ways that we can reach net zero is to switch to lower-carbon alternatives. These include:

  • nuclear power
  • wind power
  • solar power
  • cables that connect the grid to other countries to trade renewable energy, called interconnectors
  • capturing carbon dioxide from large sources such as power plants, transporting, and storing it
  • storing electricity when renewable sources generate more energy than needed, and using it when energy demand is high or prices go up - this is called long duration electricity storage

These energy alternatives benefit you by making the energy system more reliable, and the supply more secure from the impact of global events. This includes sudden rises in energy prices.

How net zero affects your energy costs

The costs in your energy bill will help pay for essential changes to the energy system as we move away from fossil fuels. These costs include:

  • investment in other energy sources, such as wind and solar farms
  • upgrades to the electricity grid
  • UK government energy schemes aimed at helping people lower their carbon emissions

You could also pay higher upfront costs if you choose new green technology for your home, such as heat pumps or solar panels, or switch to electric vehicles.

Investment is needed to create a secure low-carbon infrastructure. Although switching to low-carbon energy may cost more now, it will ultimately lower what you pay for energy in the future.

What net zero means for the energy system

When we use more renewable energy that is generated in Scotland, England and Wales, we will become less dependent on fossil fuels imported from other countries.

The energy system will need to be upgraded to make the most of low-carbon sources, and to include new technologies to support them.

These upgrades cannot be made without increasing short-term costs and encouraging investment in the energy industry.

Our role in reaching net zero

We want to protect the interests of existing and future energy consumers. As set out in our Multiyear Strategy, we believe the best way to do this is to reach net zero. The Energy Act 2023 gives us the responsibilities and powers to help make this happen.

Alongside our net zero commitment, we also have a major role to play in reaching the UK government’s target of a clean energy system by 2030. Find out more about Clean Power 2030 (GOV.UK).

Encouraging investment and innovation

We want energy companies to work hard to find new ways of making, moving  and supplying consumers with low-carbon energy.

In our role as regulator, we encourage energy companies to invest their time and money to achieve this, through our energy network price controls and the licences we grant.

These licences include financial incentives for innovation in wholesale and consumer supply including making the network more efficient and reducing bills. We also provide dedicated funding for larger innovation projects through programmes like the Strategic Innovation Fund.

UK government energy schemes

You may be able to get help to lower your carbon emissions.

We administer some UK government energy schemes that offer financial support to make improvements to your home or business premises, or to move to greener technology. They can also help you save energy and save money on your bills.

For more information and to find out which schemes are right for you, see:

Depending on where you live, you may also be able to get help from: