The adoption of renewable technology among British homeowners is on the upswing, with over 1.7 million low-carbon technology installations reported across the nation, as per the Microgeneration Certification Scheme (MCS), the governing body ensuring industry standards.
Solar panels remain the most popular choice, with over 183,000 installations recorded in the previous year alone. In contrast, home batteries represent a relatively new aspect of this trend, with installations surpassing 10,000, half of which occurred in 2023.
Home batteries offer a multitude of benefits, including optimizing power usage, reducing electricity bills, enhancing energy efficiency, and potentially generating income by selling surplus energy back to the National Grid. This financial incentive becomes particularly relevant amidst escalating energy prices in the UK, outpacing those of other developed nations.
However, despite the potential benefits, the initial cost of home battery installation, often running into thousands of pounds, presents a significant consideration for prospective buyers. Given the approximately 25 million households across Britain, the uptake of home batteries remains relatively low.
Telegraph Money explores the potential beneficiaries of home batteries and assesses their cost-effectiveness.
What Exactly is a Home Battery?
In essence, a home battery is a device installed in residences to store electricity. It enables households to draw power from the battery instead of purchasing it from the National Grid through their electricity provider.
Managed by built-in software, home batteries ensure seamless charging and power distribution throughout the house. Although typically hands-free in operation, users can engage with the battery to maximize benefits, from cost savings to potential revenue generation.
How Does a Home Battery Operate?
Home batteries supply power directly to household appliances, devices, and lighting as required. They can also charge electric vehicles if applicable. The battery’s charging pattern and duration depend on various factors, including its source of charging.
Around 95 percent of homes with home batteries utilize solar panels, with solar energy powering the house until depleted, at which point the battery supplements power. Conversely, households without solar panels rely entirely on the battery until it’s depleted, subsequently drawing power from the Grid, albeit during off-peak hours, minimizing costs.
What’s the Cost Involved?
The cost of a home battery varies depending on the model, ranging from £2,500 to over £10,000. Higher-priced models typically offer faster charging and increased energy storage capacity.
Additionally, homeowners need to invest in an inverter, costing upwards of £500, facilitating communication between the National Grid, the battery, and its software, while converting direct current (DC) from solar panels into alternating current (AC) usable in homes.
Potential Savings and Earnings
While actual savings depend on factors such as battery capacity, user interaction, and energy consumption, experts suggest significant reductions in Grid dependence. When combined with solar panels, home batteries can slash energy bills by up to 85 percent, potentially saving households hundreds of pounds annually.
Moreover, homeowners can earn income by exporting surplus energy back to the Grid, benefiting from the Government-backed Smart Export Guarantee introduced in 2020.
Conclusion
While home batteries offer promising benefits in terms of energy independence and financial savings, their suitability varies depending on individual circumstances. Discussions with suppliers and thorough consideration of costs and benefits are advisable before making an investment decision.