Can I Save Money with Home Battery Storage?

Electricity prices in the UK have risen by 65.4% since January 2022, according to the Office for National Statistics. This rise has seen many of us affected and as a result we are all having to change our behaviours to cut down on usage. Over 1 million households in the UK have turned to solar energy to help cut down on costs but not every house is suitable for them to be installed. That is why home battery storage without solar panels should be something to consider. We have explained below what home battery storage is and how it works, as well as the benefits and disadvantages of having a battery without solar panels.

What is home battery storage and how does it work?

Just like a portable power bank, a home storage battery stores electricity at a larger scale. You can then use this electricity to power your home.

The theory is that you would register for a flexible tariff (sometimes called Economy 7) which measures your electricity usage based on different prices per kilowatt: an on-peak rate and a much cheaper off-peak one. You then store the electricity during these off-peak hours whilst the cost is lower and then use the stored electricity in your home battery storage during on-peak hours where the cost is much higher.

Off-peak hours vary by supplier, but the average is between 10pm and 7am overnight. During these off-peak hours the rate for a kWh of electricity could be as low as 12p, compared to 43.4p/kWh in on-peak hours. According to Ofgem, the average household (2-3 people) uses around 8kWh of electricity a day. With a 10kWh home battery storage system being charged overnight at the off-peak rate you could save yourself on average £3 a day, or £1,100 a year.

Benefits

• At a time where we all need to watch our money, an annual average saving of £1,100 would leave you almost £100 better off a month.
• The average upfront cost of a 10kWh home battery storage system with installation is around £7,500, but you break even around 7 years.
• A storage battery has a typical lifespan of 15 to 20+ years, as well as a 10-year warranty on the equipment using in the system.
• Greater energy security and emission savings, especially for rural homes, when you experience power cuts by cutting down on emissions by possibly eliminating the need to use a generator.

Disadvantages

• Although you can run off-grid with the electricity stored in the batteries, you are still reliant on the grid to charge the batteries overnight, however by adding solar panels you can reduce this reliance.
• By still being on-grid, you are still susceptible to the ever-changing electricity prices.
• Home battery storage system solutions only work when signed up for flexible tariffs so unless you change your current provider or move to a different tariff this isn’t the solution for you.

What if I was able to have or get solar panels. Should I get them?

A home battery storage system works without solar panels. However, if you were interested in adding solar panels to your current set-up, or you are forward-thinking, then solar panels would provide many extra benefits. These include even less reliance on the grid, reducing your carbon emissions and even more money savings as you may be able to charge the batteries during the day for free in the summer.

Summary

A home storage battery system is a great solution when solar panels are not a suitable option for your home. Whilst the initial cost of the system is high, savings could average £1100 a year which means making your money back in around 7 years, and then making a huge profit every year after.