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Is solar battery storage worth it?
A solar battery allows you to store electricity produced by your solar panels and use it later or, in some cases, sell it back to the grid to make a few quid – but they're not cheap. Read on to see if it's worth getting a solar storage battery for your home...
This is the first incarnation of this guide. We'd love to know your thoughts and experiences with solar batteries, or if you've any feedback or questions we've not answered. Let us know in the Is solar battery storage worth it? forum thread.
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What is a solar battery?
A solar panel battery costs around £5,000
Solar batteries vary in price, depending on the type and storage capacity (how much energy it can hold). The cheapest start at around £1,500, but can be as much as £10,000 – though on average, you'll typically pay around £5,000 for a standard battery system.
Bear in mind, when getting a solar battery, you'll have to factor in installation fees and the cost of adding an inverter to your system. Despite the hefty price tag, once installed, solar power batteries require little maintenance. However, they will have a shorter life span than solar panels, lasting anything from five to 15 years.
With energy prices still sky-high – see our Should you fix energy? guide for the latest on the energy market – many are looking at solar and solar batteries as a way to cut costs. Below we take you through what you need to consider.
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Is it worth getting a storage battery with solar panels?
In order to answer this, there are some key points you need to consider before buying a solar battery:
- Solar batteries come with a hefty upfront cost. The actual cost will depend on your home and the size of the battery you want or need, but it can range between £1,000 and £10,000.
- You'll likely need two batteries during the life of your solar panels. Batteries last around 15 years, while solar panels last about 25 years.
- Consider if you'll recoup the costs over the life of your solar panels. As an example, if a £5,000 battery lasts 15 years, you need to be saving about £330 a year to break even. And that's just for the battery, you also need to bear in mind the solar panels maths.
- It's usually cheaper to use stored energy than get paid to export it. Under the Smart Export Guarantee (SEG) scheme, you get paid for each unit of electricity you don't use and export back to the grid. However, under the SEG, the cheapest open-market rate is 16.5p/kWh of electricity you export. Yet on average, it costs 22.4p/kWh (if you pay by Direct Debit) under the Energy Price Cap to use energy from the grid.
So right now, it's better to use your stored electricity, rather than selling what you don't use, as buying from the grid will generally cost you more than you can earn from selling it. But if you already have a SEG tariff, bear in mind your income from this will fall if you get a battery.
- Some suppliers do pay more under the SEG if you export at certain times of the day, or if you get your solar panels installed by the SEG provider – see our full list of SEG tariffs. So in some cases, it might actually be better to export than to store.
- You'll be able to use more of the electricity you generate. This should reduce your energy bills – and your carbon footprint. For example, if you're not at home during the day to use the energy your solar panels are generating, having a battery will enable you to store (and later use) energy from your solar panels.
- A solar battery means you can take advantage of cheaper electricity. There are now special energy tariffs available if you have solar panels and a solar battery, which offer much cheaper rates for electricity at off-peak times (usually for a few hours overnight).
By charging your battery (from the grid) during off-peak times when it's cheaper and storing the energy, you can use it when electricity from the grid is at its most expensive – potentially saving you £100s on your electricity bill each year.
- You could charge your EV for free. If you're an electric vehicle owner, you can use your solar battery as a car charger. Any electricity generated from your panels can be stored in your solar battery to then charge up your EV overnight.
So is it worth getting a solar battery?
It's incredibly difficult to quantify whether a solar battery will be worth it, as every household has different energy usage patterns.
According to The Eco Experts, a typical three-bedroom home could save around £582 every year with a solar battery AND solar panel system. Yet most of this saving will come from the solar panels. Only around £130 a year is saved by using stored energy in your battery.
As solar batteries come with a huge upfront cost, and the extra savings are relatively small, most will be unlikely to recoup the cost of buying a battery over its lifespan – though of course, it depends on the cost of the battery, the price of electricity and how you use it.
However, solar batteries are a great way of maximising the electricity generated by your solar panels, and reducing your reliance on the national grid, which does make it an environmentally-friendly addition to your home.
If your primary motivation for getting a solar battery is to save money, it may not be worth it until the price of solar batteries comes down (which it should, as the technology evolves and improves), or if the price of electricity rises steeply.
Ask a solar panel installer to give you an estimate of the amount you may be able to save on your energy bills, with and without a battery, to help you work out whether the additional expense is worth it. Though do bear in mind, installers may have a vested interest in wanting to upsell you a battery.
What size solar battery will I need?
When working out what solar battery size you require, the main thing for you to consider is how much energy your solar panels produce and how much energy your household uses.
You ideally want a battery big enough to store the electricity you generate but don't use, but at the same time it's not worth buying one that you can never fill.
A solar panel system typically generates double its 'size'. For example, a standard '4 kilowatt peak' (kWp) solar panel system could generate around 8kWh of electricity in a day (weather-dependent). Therefore, you'd want a battery that has a maximum capacity of 8kWh to store all the energy your solar system could potentially produce.
Yet you also need to consider how much energy you use each day. The ideal situation is that – between the solar panels and battery – you generate and store enough to completely cover your daily use. For that, you'd also need a battery that's big enough to cover your daily use.
Of course, this isn't always possible – particularly if you're at home during the day and using most of the electricity your solar panels generate. If that's the case, you may want to consider a smaller battery.
Consider how much of the stored energy you can actually use
Battery sizes are measured by how much solar electricity they can store, but generally, you shouldn't fully drain a battery, as it can damage it, meaning it'll likely need replacing sooner.
Most modern batteries allow you to use 85% and 95% of the energy stored. So you'd expect a 8kWh battery to have a usable capacity of between 6.8kWh and 7.6kWh. You'll also need to factor this in when choosing which battery size to get.
But bear in mind, the larger the storage capacity, the pricier it is, so make sure you get proper advice from a reputable installer, as the type and size of battery you need will depend on individual circumstances, property type, and what'll you'll be using it for.
How to find the right solar battery installer
When choosing and installing a solar battery storage system, make sure your installer is signed up to the Renewable Energy Consumer code (RECC) or the Home Insultation and Energy Systems Contractor Scheme (HIES), as this means you'll be covered should you need to make a complaint or claim.
Installers who are signed up to one of these schemes should be certified by the Microgeneration Certification Scheme (MCS) – an accreditation scheme for renewable energy installers and products.
If you want to be able to sell your excess power back to the national grid through the Smart Export Guarantee (SEG) scheme, your system must be certified by MCS. You can find an MCS certified battery storage installer on the MCS website.
Not got solar panels yet? See how to find certified solar panels installers.
There are special energy tariffs available if you have a solar panel battery
If you have a solar battery, Octopus Energy has two innovative tariffs that can beat most of the SEG rates – but they're complex.
Octopus Flux and Intelligent Octopus Flux are tariffs for existing Octopus customers with solar panels and storage batteries (although you can switch to Octopus' standard variable tariff first if you're not already a customer).
Both are import and export tariffs, meaning you'll pay for any electricity you use and it'll pay you for any power you send back to the grid. To get 'em, you'll also need a working smart meter and battery (and a particular kind of battery with Intelligent Octopus Flux). You can read more about these tariffs in our Solar panels guide.
You can set your battery to export electricity at certain times of day
With tariffs such as Octopus Flux, you can set your system to charge your battery overnight (from the grid) when rates are cheapest, then export electricity in the early evening, when export rates are highest. The Intelligent Octopus Flux does this for you automatically, but it's only compatible with one type of battery right now.
Top tips when getting a solar battery
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