UK Households Turn to Home Batteries as Energy Bills Set to Soar

The UK is bracing for a sharp rise in home energy bills from this summer, prompting a record number of households to investigate green home upgrades. The looming energy cost crisis has led to a surge in interest in heat pumps, solar panels, and electric vehicles. However, it's the falling cost of home batteries that's expected to be the key to unlocking the greatest possible cost savings from these green investments. For the right home, home batteries can cut bills, increase flexibility, and make everyday energy use smarter and more resilient, according to Tom Pakenham, a director at Hive, a subsidiary of British Gas owner Centrica. The promise of greater control over energy costs has piqued the interest of consumers 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.

This is the second time in four years that households have braced for the impact of volatile fossil fuel markets on their personal finances. Rebecca Dibb-Simkin, the chief product officer at Octopus Energy, says the falling cost of home batteries could prove to be a “gamechanger” in 2026 by allowing customers to “fill up when electricity is cheap, and power your home when it’s expensive”. Battery prices have dropped by 90% since 2010 and continue to get cheaper every year. The more electricity a household uses, the greater the potential savings from using a home battery. This means households with a home car charger or electric heat pump stand to be some of the biggest beneficiaries of Britain’s home battery boom – but all consumers could benefit from home batteries relative to their usual bills, according to innovation charity Nesta. Batteries are particularly useful to homes which generate their own electricity. Most rooftop solar installations now include a battery to help make the best use of the solar power they generate.

The Benefits of Home Batteries

Home batteries can help households use electricity more efficiently, provided they are not on a conventional single-rate energy tariff which prevents them from using the daily fluctuations of electricity costs to their benefit. But if a bill payer has a smart meter, or is willing to install one, they would be able to access a growing number of “smart tariffs” that offer variable electricity rates during the day. Andrew Sissons, a director at Nesta, says that to benefit, consumers will need to be prepared to manage their home energy usage – for example, by using an app to help them make the most of how and when they use their battery. The cost of a home battery will depend on its capacity: the larger the battery, the more it normally costs. On average over the last year, installing one cost about £5,500 for a 4kWh battery, according to the MCS, the standards body for installers.

Real-Life Examples

Amy Isted, who lives on a smallholding in Horsham, West Sussex, with her husband Andy and two children, is reaping the benefits after swapping their old heating oil tank for an eco-friendly energy set-up that encompasses a heat pump, solar panels, a home battery, and an electric car charger. When they moved into the near-derelict farmworker’s house a decade ago, they inherited a “knackered old heating oil system”, says Isted. The family used a local, family-owned company called Sussex Solar to install their new set-up, which includes a Vaillant Arotherm 5kW heat pump and hot water cylinder, a 1.76kWp photovoltaic solar system, and a Tesla Powerwall 3 home battery.

The Future of Home Batteries

In the future, even more households will be able to take advantage of power storage. New innovations on the horizon include “plug-in” batteries that connect directly into the power mains. This eliminates the need for installation and makes battery storage accessible to those in rented homes. These 1kWh to 2kWh batteries are smaller than their full-scale alternatives and in the future could be paired with plug-in solar panels, which have recently won the backing of the government and could be on the market later this year.

Expert Insights

“For the right home, [home batteries] can cut bills, increase flexibility and make everyday energy use smarter and more resilient,” according to Tom Pakenham, a director at Hive, a subsidiary of British Gas owner Centrica.

Rebecca Dibb-Simkin, the chief product officer at Octopus Energy, says the falling cost of home batteries could prove to be a “gamechanger” in 2026 by allowing customers to “fill up when electricity is cheap, and power your home when it’s expensive”. Andrew Sissons, a director at Nesta, says that to benefit, consumers will need to be prepared to manage their home energy usage – for example, by using an app to help them make the most of how and when they use their battery.

Safety and Installation

Home batteries are generally very safe. Unlike the batteries in phones and laptops, which can overheat easily, home batteries are made using lithium iron phosphate, which is specifically designed to be stable – even if damaged. Proper installation is crucial, though. “When installed correctly, home battery systems are considered safe, and thousands are already in use across the UK,” according to Brian Horne from the Energy Saving Trust. He adds: “Always get professional advice before installing a home battery, and use a trusted installer.”

Conclusion

The UK's home battery market is set to continue growing as more households invest in green home upgrades to cut their energy bills. With the cost of home batteries falling and the benefits of smart tariffs and efficient energy use, it's an exciting time for consumers looking to take control of their energy costs. As the energy landscape continues to evolve, it will be interesting to see how home batteries play a role in shaping the future of energy storage and usage in the UK.