Home battery. Is it right for you?

What is a Home Battery?

A home battery stores electricity for use when you need it most. Typically, it’s charged from your home’s solar panels or during low-cost electricity hours. When cost spikes or the sun isn’t shining, your battery discharges the stored energy, maximising use of your home’s generated electricity and reducing electricity costs.

Cost vs. Return

Home batteries can lead to significant savings, but the exact amount varies. According to the Energy Savings Trust, UK homeowners could save up to £796 annually by installing a battery storage system. However, your savings will depend on factors like the size of the battery, your energy usage patterns, and electricity prices.

If you’re in the UK, there’s an added incentive: home battery installations and retrofits are tax-exempt until March 31, 2027. This effectively reduces costs by 20%, making it a more attractive investment. Other European countries may offer similar subsidies or tax benefits, so check with your local or national government to see what’s available.

For the best returns, consider using a time-of-use electricity tariff. These tariffs provide cheaper energy during low-demand periods, allowing you to charge your battery affordably and discharge it when prices rise. The savings are even greater when paired with renewable energy systems like solar panels or wind turbines. Additionally, you may benefit from export electricity tariffs, which pay you for surplus renewable energy you send back to the grid.

Do You Need Solar Panels?

The short answer is no, but having solar panels can significantly boost your battery’s value, especially in sunnier parts of Europe. For instance, a homeowner in Spain is likely to see greater benefits than someone in the UK due to higher solar energy generation. Even without solar panels, a home battery can save you money by leveraging time-of-use electricity tariffs.

Maintenance and Lifespan

Home batteries are relatively low-maintenance. They typically last between 5 to 15 years, with most users reporting lifespans of 10 to 13 years. Over time, their storage capacity will degrade, much like phone or car batteries, but the rate of degradation depends on usage. Proper care, such as avoiding complete discharge cycles, can help extend their lifespan.

Choosing the Right Battery

Home batteries come in various sizes, usually ranging from 1kWh to 16kWh or more. As capacity increases, so does the battery’s physical size and cost. Selecting the right battery size depends on factors like:

• Your average electricity consumption
• Whether you have renewable energy systems
• Available storage space
• Budget

Keep in mind that a battery’s total capacity differs from its usable capacity. Most modern batteries have a depth of discharge (DoD) between 90-95%, meaning only a portion of the total capacity is safe to use regularly without damaging the battery.

To estimate the appropriate battery size for your needs, review your electricity bills to understand your consumption. Online battery size calculators can also provide tailored recommendations.

Is a Home Battery Right for You?

Deciding whether to invest in a home battery depends on your circumstances. If you want to save on electricity costs, enhance your energy independence, or make better use of renewable energy, a home battery could be a great fit. With incentives like tax exemptions and falling technology costs, the financial case for home batteries is becoming stronger across Europe.

By evaluating your energy usage, potential savings, and available incentives, you can determine if a home battery is a worthwhile investment for your home.