Home batteries: a ‘gamechanger’ for cutting energy bills?

Home batteries are poised to cut energy bills and boost flexibility for UK households, as falling costs and rising energy prices drive a surge in interest [1]. The promise of greater control over energy costs has piqued consumer interest as typical dual fuel bills are forecast to climb to almost £2,000 a year under the next government price cap taking effect from July [1]. “For the right home, [home batteries] can cut bills, increase flexibility and make everyday energy use smarter and more resilient,” said Tom Pakenham, a director at Hive, a subsidiary of British Gas owner Centrica [1]. Battery prices have dropped by 90% since 2010 and continue to get cheaper every year [1]. On average over the last year, installing a 4kWh battery cost about £5,500 [1]. However, costs are falling; Octopus Energy charges £3,447 to install its smallest 5kWh battery [1]. Home batteries can help households use electricity more efficiently, especially if they have a smart meter to access variable-rate tariffs [1]. A home with rooftop solar panels could charge its battery through the day, making cheap electricity available in the evenings [1]. Savings can be significant. A typical home in Milton Keynes with a 5kWh battery and a 4 kWh solar system could save nearly £760 annually on electricity bills [1]. “We’ll have had a couple of days this week when we’ve used no energy from the grid at all,” said homeowner Amy Isted [1]. A solar and battery system can pay back its cost in nine to 13 years, according to the Energy Saving Trust [1].