Amid fluctuating energy costs, an increasing number of UK households are embracing domestic battery energy storage systems (BESS) like the Tesla Powerwall to maximise savings during off-peak hours.
These high-tech, smart-controlled batteries are programmable to charge overnight when the grid is abundant with cheaper, renewable energy. This not only supports sustainable energy consumption but also slashes household energy costs significantly—often to a third of peak daytime rates.
By incorporating a smart home energy storage system such as the Tesla Powerwall, households are able to capture and utilise this low-cost energy, potentially reducing their energy bills by up to 75%. This approach also enables homeowners to take full advantage of flexible energy tariffs.Â
The Evolution of the UK’s Residential Energy Storage Market
The UK’s residential energy storage market is rapidly evolving. Whereas the traditional approach was to pair batteries with solar panel installations, the trend is shifting. Consumers are now opting to install standalone battery systems first, considering solar additions subsequently. This change reflects a strategic adaptation to make the most of time-of-use tariffs.
Ben Price, co-founder of Heatable, notes, “Market dynamics are changing. Initially, the typical route was to install solar panels and then add a battery. Now, the priority often lies in securing a battery first and assessing solar options later.”
Supporting this growth, there were nearly 5,000 MCS-certified installations of battery storage units in 2023, marking a record annual high. The momentum continues into 2024, with over 2,200 certified installations already completed.
Government Support and Incentives
Furthermore, in a bid to make these systems more affordable, the UK government has removed VAT on domestic BESS installations and retrofits effective from 1 February this year.
This policy, established under the Value Added Tax (Installation of Energy-Saving Materials) Order 2024, aims to promote the adoption of energy-saving technologies and will remain in effect until at least 31 March 2027.
Benefits Beyond Cost Savings
The benefits of adopting battery energy storage systems extend beyond mere cost savings. For instance, these systems can significantly enhance energy security and resilience for households. By storing energy, homeowners can maintain a supply during power outages, ensuring that essential appliances and systems remain operational.
Additionally, battery storage systems can contribute to grid stability. By reducing peak demand pressure on the grid, these systems help balance supply and demand, potentially reducing the need for investment in new infrastructure and the environmental impact associated with peak power generation.
Technological Advancements Driving Adoption
Technological advancements in battery storage are also a key driver behind the increasing adoption rates. Modern batteries are becoming more efficient, with higher storage capacities and longer lifespans. Innovations in battery technology are making these systems more attractive and cost-effective for everyday use.
The integration of artificial intelligence and machine learning into BESS is another significant development. These technologies enable smarter energy management, allowing systems to learn and predict household energy usage patterns. As a result, they can optimise charging and discharging cycles, maximising savings and efficiency.
Environmental Impact
Adopting battery energy storage systems aligns with broader environmental goals. By leveraging renewable energy and reducing reliance on fossil fuels, these systems help lower carbon emissions. This contributes to national and global efforts to combat climate change and transition to a more sustainable energy future.
Moreover, as the UK aims to achieve net-zero carbon emissions by 2050, the role of household energy storage becomes increasingly critical. By reducing the overall demand for energy and integrating more renewables into the energy mix, battery storage systems support the decarbonisation of the energy sector.
The Future of Domestic Battery Storage
Looking ahead, the future of domestic battery storage in the UK appears promising. With ongoing government support, technological innovations, and growing consumer awareness, the adoption of these systems is expected to continue rising.
As more households embrace battery storage, the cumulative impact on energy efficiency, cost savings, and environmental sustainability will become more significant. The shift towards smart, flexible energy solutions marks a transformative period for the UK’s energy landscape, paving the way for a more resilient and sustainable future.
In conclusion, domestic battery energy storage systems like the Tesla Powerwall are revolutionising how UK households manage and consume energy. With the potential to significantly reduce energy bills, enhance energy security, and support environmental goals, these systems represent a smart investment for the future. As market dynamics evolve and government incentives continue to promote adoption, the integration of BESS into everyday life will likely become the norm, driving the UK towards a more sustainable energy future.
Dylan Welch is the CEO and Host of Going Green, a podcast, website, and social media brand that highlights renewable energy, cleantech, and sustainable news.