Exploring the benefits of domestic battery storage

For a long time, old energy has faced a big challenge: storage. 

Storing electricity isn’t like keeping, say, flour in a jar, or oil in a barrel, because electricity isn’t actually a substance. In fact, it’s more of a process: the movement of electrons between two differently charged points. This means that holding it for later use can be complicated, but, more than ever with our efforts towards net zero, we need ways of doing so. 

The energy market, like any other, operates around supply and demand. When people switch on their devices they create demand, and it’s up to generators to meet it. When relying on fossil fuels, this is relatively straightforward. A natural gas plant, for instance, can be fired up as and when it’s needed, but renewable energy sources such as wind and solar can fluctuate according to the weather. 

This is where storage becomes essential. Having too much electricity on the supply side can be just as detrimental for the grid as not having enough, and so we need to be able to generate large amounts of renewable electricity when the wind is blowing or the sun is shining and then store it for later use. 

A significant part of the solution will without a doubt be large battery storage facilities located around the country, and we’re proud to play a leading role in establishing them, but we think there are huge potential benefits to making the most of smaller domestic batteries as well. 

Domestic batteries can help households, the country, and the planet 

Domestic batteries can help customers access sustainably generated electricity at any time by letting them buy power from the grid when the renewable supply is high – for instance due to strong winds or a particularly sunny day – and then store it to use later. This has the additional advantage of helping to keep the grid balanced – ensuring that supply and demand at the national level are closely matched – which is essential to keeping the country’s energy system running. But it also has direct financial benefits for individual households. 

By using a smart meter in combination with a Time of Use tariff, customers with domestic batteries could buy and store off peak electricity when it’s cheapest, and then consume it when prices are higher. Over the average battery’s lifespan, this could create up to £6,000 in savings, which is roughly twice the cost of installing the battery to begin with. And this is where domestic batteries also show their potential for fighting fuel poverty. 

Fighting fuel poverty with batteries big and small

Not only are the potential savings of having a domestic battery considerably more than the cost of installation, they’re also more than the amount we currently spend to help at risk customers through the Warm Home Discount. 

This means that, by installing battery storage in vulnerable customers’ homes, we could give them access to sustainable energy, have a greater impact on their bills than existing measures, and save money. 

This potential win-win situation is so compelling we had to try it out, which is why we’re currently running a pilot in collaboration with Coventry City Council to install batteries in roughly 30 homes free of charge. 

By doing this, we hope to prove to other potential partners and the UK Government that domestic storage can be a powerful tool in the fight against both fuel poverty and climate change, and is well worth prioritising as part of our collective efforts. 

That’s why we’re leading the way on large-scale battery storage projects like the upcoming facilities in Newport, South Wales, putting batteries into community buildings such as grassroots football clubs through our Green Game partnership with The FA, and installing ever more batteries in British homes. 

To bring even more storage capacity to the UK, we also want to support the Government in establishing more green financing grants and guarantees for lenders, and making positive changes such as allowing third-party ownership of devices under the Boiler Upgrade Scheme. 

With actions like these, we can make the most of renewables, help customers, and make new energy work. 

To find out more about our pilot in Coventry, take a look at: Helping vulnerable customers in Coventry with  home energy upgrades.