Our grid was built for a centralised system, where large power stations generated electricity and distributed it in one direction to homes and businesses. Net zero turns that model on its head.

We are moving towards a decentralised, electrified system with millions of generation points, new demand from data centres, transport and heat, as well as increasing complexity. It is no surprise that the system is straining at the seams.

There is a growing narrative that the solution lies in shifting demand. The National Energy System Operator’s (NESO) commitment to incentivise consumers and businesses to use electricity at off-peak times has a role to play, but it does not address the underlying challenge.

The National Grid itself projects that upgrades to infrastructure will cost £35bn over the next five years. At the same time, the queue to connect new projects to the grid has grown by 460% in the last six months, and critical components such as transformers are in short supply.

The reality is that the grid alone cannot carry the weight of net zero, no matter how much we shift demand, at least not within the timeframes we are working to. If we continue to rely on it as the primary route to decarbonisation, we risk snail-like progress, increasing costs and creating bottlenecks that delay projects across the economy.

This is why we need to think beyond the grid.

Relieving pressure on the system
Grid-edge technologies offer a practical and immediate way to relieve pressure on the system. These are solutions that generate and store energy at the point of use, rather than relying on central infrastructure. Solar thermal is a great example. It allows businesses to produce renewable heat directly on-site, using the sun, without drawing additional electricity from the grid.

This matters because heat is a major part of this challenge. Around half of global energy demand is for heat, yet much of the conversation remains focused on electricity.

When organisations electrify heat through technologies such as heat pumps, they increase demand on an already constrained grid. That is not a reason to avoid electrification, but it does mean it shouldn't be the automatic solution.

By integrating solar thermal alongside heat pumps, we can reduce that demand significantly.

Solar provides a base supply of zero carbon heat, actively reducing the total load the heat pump has to manage. The result is a more efficient system with lower operating costs and a smaller carbon footprint. Crucially, it also reduces the amount of electricity required, freeing up capacity on the grid for applications where it can be used more efficiently.

Every kilowatt-hour generated and used on-site is a kilowatt-hour that does not need to be transmitted, distributed or balanced by the grid. At scale, that has a meaningful impact. It reduces the need for expensive infrastructure upgrades, lowers system-wide costs and accelerates the pace at which we can decarbonise.

The question should not be how we electrify everything, but how we deliver the most efficient, resilient and cost-effective energy system overall.

There is also a broader economic argument. The current approach relies heavily on large-scale infrastructure investment, much of which will ultimately be borne by taxpayers and consumers.

For example, the European Commission estimates €584bn is needed to upgrade electricity grids to reach 2030 net zero goals – that’s before you even consider the cost of reaching 2050 targets.

Distributed energy offers a complementary pathway. By deploying smaller, distributed systems, we can deliver low to zero carbon energy quicker and often more cost-effectively.

These systems can be installed today, without waiting for grid connections or major upgrades. They provide an immediate financial hedge to businesses, while reducing emissions and contributing to national decarbonisation goals.

Importantly, this is not about replacing the grid. We will always need a strong and resilient infrastructure to enable the energy transition. But we need a more balanced approach, one that recognises the role of both centralised and distributed solutions.

The question should not be how we electrify everything, but how we deliver the most efficient, resilient and cost-effective energy system overall. This includes combining technologies in a way that reduces demand on the grid from the outset, rather than only trying to shift demand by changing people’s habitual electricity use.

The conversation around solar overwhelming the grid highlights a deeper issue. It is not a failure of renewable energy, but is a signal that our infrastructure and our thinking need to evolve.

The path to net zero is not about choosing between the grid and decentralised solutions. It is about making them work together.

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.

• Further reading: ‘Solar heat has to play a bigger part in decarbonising Europe’ .Solar thermal technology offers considerable benefits to homes, industry and district heating schemes, and deserves more support, writes Valérie Séjourné, Managing Director of the Brussels-based trade association Solar Heat Europe.
• ‘Network reinforcement isn’t enough – we need smarter maintenance decisions’. The real opportunity in modernising the electricity grid lies in intelligence – understanding how high-voltage (HV) assets like transformers, switchgears and cables are behaving, and using that data to make better informed decisions about when and where to act, writes Jonathan Lewin, Head of HV Monitoring at power engineering company EA Technology.