Ed Miliband talks about potential of solar, batteries, and heat pumps for homes

On January 15th, Secretary of State for Energy and Climate Change Ed Miliband made his first select committee appearance to answer questions on the UK’s clean energy transition, and one of his answers in particular gave cause to be optimistic. 

In response to a question from Claire Young MP about the Government’s intention to progress a consultation from 2020 on helping private homeowners undertake energy improvements with green mortgages, the RT Hon Mr Miliband replied that this was something he wanted to work on, and that: “It is important to realise the potential here. If you think about the potential around solar, batteries and heat pumps, with half-hourly settlements, I think we are underestimating the extent that this can make a massive difference to consumers and give people much more control over their bills and lead to lower bills.” 

We could not agree more, and in recent months have been speaking a lot about the transformational potential of battery storage in homes and buildings across the UK. We’re also putting this into practice right now, through a first-of-its-kind pilot in Coventry. 

Helping households with batteries in Coventry 

As part of our 15-year partnership with Coventry City Council, towards the end of last year we started a pilot installing batteries in finically vulnerable households at no upfront cost. The reason is that, like Mr Miliband, we see potential to help people with their energy costs. 

There are now more than 35 million smart meters in UK homes, and with the Market-Wide Half-Hourly Settlement set to begin rollout in April this provides an enormous opportunity for consumers to take advantage of market innovations like Time-of-Use tariffs. 

With a domestic battery, customers can use these tariffs to buy and store electricity when it’s cheapest, then use or even sell it back to the grid when it’s more expensive. It’s estimated that this could save the average UK household between £250 and £300 a year, which, over the average battery’s 20-year lifespan, adds up to between £5,000 and £6,000 in savings. That’s not only roughly double the £3,000 installation cost of domestic storage, but could also be potentially more effective than the existing £150-a-year Warm Home Discount for financially vulnerable customers. 

“By bringing battery storage and other energy-efficient solutions into vulnerable customers’ homes, our aim is to give people the tools they need to navigate the challenges of today’s energy landscape while building a more sustainable future,” says E.ON Next’s Chief Operating Officer Ramona Vlasiu. 

Or, as the RT Hon Mr Miliband put it to the committee in January: this can make a massive difference to consumers and give people much more control over their bills. 

Realising the potential of home energy upgrades 

As an energy supplier committed to making new energy work, we are always looking for new ways to innovate, bring down people’s bills, and support the energy transition, which is why it’s encouraging that the Secretary of State for Energy and Climate shares our view on one of the ways this can be done. 

we’re installing  more than 30 batteries as part of our current pilot in Coventry, and we hope Mr Miliband’s colleagues in government will also see the value in this idea and help support similar help for customers in future. One way of doing this is through increasing green financing and guarantees for lenders, including green mortgages, that could enable more home upgrades in future, but we would be excited to work with the Government in any way that might bring innovative new solutions to market, fight climate change, and bring bills down. 

To learn more about our pilot in Coventry, read: Helping Vulnerable Customers in Coventry with Home Energy Upgrades