The energy price cap is decided by Ofgem. It aims to
manage electricity prices for UK homes with standard variable tariffs. As energy costs rise, many homeowners
are exploring home battery storage systems. These systems can help reduce electricity bills and effectively
use renewable energy sources, such as solar panels.
A battery storage system helps homeowners save extra electricity created during the day. They can use this
stored energy when electricity prices rise. This cuts back on their reliance on the National Grid. It can
also lower energy costs during peak hours and help save on energy bills over time.
How the Energy
Price Cap Affects Home Battery Storage Costs
The energy price cap shows how much families pay for each unit of electricity. This affects the savings
people can have from home battery storage.
Higher electricity prices make it more affordable to store energy when it costs less during off-peak times.
Time-of-use tariffs offer lower rates at night. This is why charging home batteries overnight is a good
idea. Home batteries can reduce the need for grid electricity during peak hours. This can save you money on
energy bills over time.
Cost
of Home Electricity Under the January 2025 Energy Price Cap
Charge Type
Cost Per kWh (pence)
Daily Standing Charge (p/day)
Standard Variable Tariff (SVT)
24.86p
60.99p
Fixed Tariff (Average)
22p
Varies by supplier
Off-Peak Tariff (Time-of-Use Tariffs)
7p – 12p
Varies by supplier
Households with a battery storage system can save
money. They do this by storing energy when it costs less. This way, they can avoid high costs
during peak hours.
Owners of solar panels can keep their extra solar energy. This helps them instead of sending it back to
the grid at lower prices.
How Home Battery Storage
Saves Money on Energy Bills
Installing a home storage battery can help you control your energy consumption. It lets you use energy when it
costs less. This way, you can take advantage of the changes in electricity prices.
Use the energy stored during the day to save on high grid electricity costs.
Use more solar power to rely less on fossil fuels.
Homes with battery storage and solar panels can cut their energy bills by up to 85%.
A solar panel system without battery storage can send about 50% of extra energy to the grid, which pays 5-6p
per kWh. With a battery, homeowners can store this extra energy and use it later. This saves them from
paying 24.86p per kWh to the grid.
Check if you're paying too much.
Compare your current tariff with the cheapest energy deals available in your area – it only takes a few minutes.
Battery storage systems can help you save money over time. However, you need to invest some money upfront.
The installation costs are between £4,500 and £10,000. This depends on the brand and size of the battery.
Bigger batteries may give you more energy independence, but they also come with a higher initial cost.
Government programs, such as the Smart Export Guarantee (SEG), allow you to sell your stored electricity to
the National Grid. This can help reduce how long it takes to earn back your investment.
Average Home Battery
Storage Costs in the UK (2025)
Battery Model
Capacity (kWh)
Cost (£)
Estimated Annual Savings (£)
Tesla Powerwall
13.5 kWh
£8,500 – £9,500
£400 – £600
GivEnergy 9.5 kWh
9.5 kWh
£5,500 – £6,500
£300 – £500
Sonnen Eco 10
10 kWh
£7,000 – £8,000
£350 – £550
Tesla Powerwall is a popular option for solar battery storage in the UK. How much you benefit from it can
depend on several things. These include your energy usage at home, the rates you pay for electricity, and
the demand from the grid.
Time-of-Use Tariffs and Home
Battery Storage
Many UK energy suppliers offer time-of-use tariffs. This means that electricity prices vary depending on how much electricity is used. A home storage
battery
helps families store cheap electricity during low demand. They can use this stored power later when prices
are higher.
Peak hours are from 4 PM to 9 PM. During these hours, electricity costs the most.
Off-peak hours are from 12 AM to 7 AM. These times have cheaper rates, making them good for charging
your battery.
Some plans, such as Octopus Intelligent Go, offer rates as low as 7p per kWh at night.
Peak vs Off-Peak Energy
Costs for UK Homes
Time of Day
Tariff Type
Cost Per kWh (pence)
Peak Hours (4 PM – 9 PM)
Standard Variable Tariff
24.86p
Off-Peak Hours (12 AM – 7 AM)
Time-of-Use Tariff
7p – 12p
Charging a home battery at night and using it during peak times can save you a lot of money every year.
How Home Battery Storage
Supports Energy Security
The UK is shifting to use more renewable energy. Battery storage systems are great for keeping the grid
stable. They also help lessen our dependence on fossil fuels.
It helps the National Grid by balancing the supply and demand for electricity.
It supports renewable energy by storing solar and wind power.
It prevents power cuts by giving backup power during grid issues.
It makes homes more independent, so they need less assistance from energy suppliers.
Battery storage helps homes hold onto extra solar energy. This way, they do not need to sell it for low
prices. As a result, solar PV systems can perform better.
How Home
Battery Storage Helps Households Avoid Standing Charges
Even if a home relies mostly on battery storage for energy, standing charges still need to be paid. A
standing charge is a fee that energy companies charge each day. This fee goes toward the costs of
maintaining the grid, managing networks, and operating meters. It stays the same no matter how much
electricity is used.
The daily standing charge for electricity starting January 2025 is 60.99p. This adds up to £222.61 over
one year.
Homes that don’t use much grid electricity still have to pay this fee. This is the case even if they
mostly rely on a solar battery storage system.
Some time-of-use plans can lower standing charges for homes that use energy from their battery storage
system better.
How to Reduce the Impact
of Standing Charges
Choose an energy supplier with lower standing charges– Some companies offer plans
that reduce or remove these charges, especially for homes that use battery storage.
Use stored energy during peak times– Saving energy from the grid when prices are
highest can help you save more money.
Consider off-grid solutions– While most homes are connected to the National Grid,
some battery storage systems can provide a little energy independence.
Homeowners can save on energy costs by choosing the right battery storage system and tariff. This choice
allows them to rely less on the grid. Therefore, standing charges will be a smaller part of their total
energy costs.
Comparing Home Battery
Storage to Solar Feed-In Tariffs
Many homeowners with solar panel systems often wonder if they should sell their extra solar energy back to
the National Grid or store it in a home battery.
The Smart Export Guarantee (SEG) allows homeowners to sell their extra solar energy back to the grid. The
payment rates for this usually range from 5p to 15p per kWh and can differ by supplier. Using battery
storage helps homes save that extra electricity for later use. This way, they do not have to buy electricity
back at higher rates from the grid, which are now at 24.86p per kWh due to the energy price cap.
Which Option Offers Greater
Savings?
Selling extra electricity under SEG tariffs is useful only if the export rate is equal to or greater
than the purchase rate.
It’s better to have battery storage if the home uses most of the solar energy produced instead of
selling it at lower prices.
A combination of strategies is effective. Some homeowners use both battery storage and SEG tariffs to
save more based on the amount of energy produced during different seasons.
Installing a home battery storage system can help homeowners save money. Instead of selling electricity for a
low price and buying it back for more, they can use the energy they store. This practice can lead to better
cost savings over time.
The Role of Smart
Meters in Optimising Battery Storage Use
A smart meter is key for using a home battery storage system effectively. It monitors energy consumption as
it happens. This lets homeowners see the best times for storing and using electricity. This way, they can
save more money.
Time-of-use tariffs require a smart meter. This helps track energy usage and bill homes properly.
Certain energy suppliers offer battery integration with smart tariffs. This allows the battery to charge
when electricity prices are low.
Dynamic pricing models adjust electricity rates based on demand. Smart meters help homes take advantage
of these changes in rates.
Benefits of Using
a Smart Meter with a Home Battery
Automatic scheduling– Smart meters connect with home battery systems. They charge
when electricity rates are low during off-peak times.
Better energy tracking– Homeowners can watch how much grid electricity and stored
electricity they use.
Potential access to supplier incentives– Some energy suppliers offer lower rates
for smart meter users who have energy storage.
More UK suppliers are providing time-of-use tariffs. This means smart meters are key to getting the most out
of your home battery savings.
Check if you're paying too much.
Compare your current tariff with the cheapest energy deals available in your area – it only takes a few minutes.
How Home Battery
Storage Supports the UK’s Net-Zero Goals
The UK aims to achieve net-zero carbon emissions by 2050. This means it must significantly reduce carbon
emissions and switch to energy sources that produce less carbon. Home battery storage is essential in
supporting this transition by:
Using less energy during peak times helps reduce the need for fossil fuel power plants.
Storing extra renewable energy helps match supply and demand.
A stable grid means that homes can get clean energy, even when solar or wind power changes.
Why Battery
Storage is Essential for a Low-Carbon Future
Supports renewable energy use– Battery storage saves extra solar and wind energy.
This means we can use more clean energy and cut down on waste.
Reduces grid dependence– Homes that have battery storage depend less on power from
fossil fuel plants.
Boosts energy security– A stronger energy grid with more batteries helps lower the
risk of power cuts and shortages.
Homeowners can help lower national emissions by investing in battery storage technology. This choice also
cuts down the need for fossil fuels and helps create a cleaner energy system.
Future of Home Battery Storage in the
UK
As battery technology improves and prices decrease, many homes in the UK will probably start using energy
storage systems.
New battery models are being released. They can hold more power and recharge quickly.
The government might provide assistance, like solar panel grants. This could lower the cost of battery
storage.
Batteries will link with electric vehicles (EVs), heat pumps, and smart meters as part of smart home
systems.
By 2030, a lot of homes in the UK could use home storage batteries. This would fit into a smart energy
network. It will help cut back on the need for grid electricity and support a low-carbon future.
FAQs About Home
Battery Storage and the Energy Price Cap
Does the energy price cap affect
home battery storage savings?
Yes, the price cap keeps the cost of electricity down. This helps people save more with battery
storage. Homes that have time-of-use tariffs gain the most from this.
How
much does a home battery cost in the UK?
Prices range from £4,500 to £10,000. This change depends on the size and brand of the battery.
Larger batteries can help you save more money over time. Still, they have a higher initial cost.
Can I get government grants for battery storage?
Right now, you cannot get direct grants for home batteries. However, you can receive help with
costs through solar panel grants and the Smart Export Guarantee (SEG).
Which battery is best for solar panel storage?
Tesla Powerwall – A fantastic option for keeping a large amount of energy.
GivEnergy 9.5 kWh – A budget-friendly choice for small to medium homes.
Sonnen Eco 10 – Ideal for homes that prioritise energy efficiency and smart technology.
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