Installing a battery storage system in your home can bring you multiple benefits. It can reduce your reliance on the grid, lower your energy bills and help you contribute to a more sustainable future.
However, with a wide range of battery storage options and prices to go with them on the market, it can be a daunting task to get your choice right. Our article on the best UK battery storage systems is a good place to start.
Perhaps the biggest factor for most people, once you’ve zoned in on the right capacity and narrowed down the choice, is cost. This article aims to provide a comprehensive price comparison guide for home battery storage systems, helping you as a homeowner to make an informed decision based on your needs and budget.
How much does an average battery storage system cost?
Thanks to the broad options available, you can expect to pay anything from £3,000 to £10,000 for a residential battery energy storage system.
To give you a specific example, a standard 5kWh storage battery that’s suitable for a three-bed house will cost around £4,500 on average.
But prices will vary significantly depending on factors such as battery capacity, the brand and installation costs – all of which we’ll look at next.
Factors affecting battery storage prices
When weighing up the costs of a home battery storage system, there are several key factors that come into play.
Battery capacity and power output
The capacity of a battery, measured in kilowatt-hours (kWh), determines how much energy it can store in total. Usable capacity is a more accurate figure of how much of that stored energy your battery can use.
The power output, measured in kilowatts (kW), refers to how much energy the battery can deliver at any one given time. The usual analogy is to imagine a bucket full of water. The amount of water is the capacity. Now, put a hole in the bottom. The rate at which the water flows out is the power output. Higher capacity and power output generally come at a higher cost.
To learn more check out our articles on what are battery storage systems and getting started with the battery basics.
Battery chemistry
Lithium-ion is the most common type of battery storage system. The two main varieties of lithium-ion batteries are lithium iron phosphate (LFP or LiFePo4) and nickel manganese cobalt (NMC).
LFP batteries are known for their safety and longer lifespan, whereas NMC batteries offer higher energy density, meaning they take up less physical space. Generally speaking, both types are excellent though.
Lithium-ion prices have reduced in price significantly over the past decade, just like solar panels have. In fact, since 1991 lithium-ion batteries have decreased in price by 97%! That said, you’ll still pay a slight premium for the latest li-ion technology.
Brand reputation and warranty
Established brands with a proven track record of reliability and performance often come at a premium price. However, they may also offer more comprehensive warranties, which gives you a boost of confidence in their product.
The standard warranty for most storage batteries is 10 years. However, some brands with confidence in their product offer 12 or 15 year warranties. It’s also common for companies to stipulate a number of cycles in line with their guarantees. For example, a brand’s warranty might be 10 years or 6,000 cycles, whatever comes first. Read up on how long storage batteries last for here.
Installation costs
The complexity of the installation process, which may involve electrical upgrades, mounting and configuration, will impact the overall cost of a battery storage system. Professional installation is crucial for safety and to maintain the validity of the manufacturer’s warranty.
Some batteries will come with the installation price included, whereas others will put you in touch with professional installers in your area. We’ll discuss more on installation costs shortly.
Energy costs and tariffs
Once you’ve had your battery installed, you then have the costs associated with running it. The cheapest way to charge a storage battery is with your own ‘free’ solar energy. Once your immediate power needs have been met by your solar energy, the excess will be diverted to your battery to use later on. If your battery is fully charged, your solar energy can be sent to the grid in return for payment. This comes under the Smart Energy Guarantee (SEG).
You also have the option to charge your battery overnight using cheaper energy prices. This will require some form of time-of-use tariff. Once the cheap energy is stored, you can then use this to power your home during the morning rush when the sun generally isn’t shining. This will save you from tapping into the grid and the higher day-time energy prices.
These running costs affect the overall cost-effectiveness of your battery storage system, so they are important to know about.
Comparing battery storage brands by price and capacity
To help you compare the costs of different battery systems, we’ve put together this table featuring some of the most popular brands and models available in the UK. Some of the prices are estimates as companies require specific household details before they can give you a quote.
Alongside price, the table includes some of the other important factors to help you compare like for like storage batteries.
| Battery | Capacity (kWh) | Depth of Discharge | Battery Chemistry | Price |
| Tesla Powerwall 2 | 13.5 | 100% | NMC | From £5,800 |
| Powervault P4 | 8 – 16 | 100% | LFP | £6,000 – £8,000 |
| Enphase IQ 5P | 5 | 100% | LFP | From £4,700 |
| GivEnergy All in One | 13.5 | 100% | LFP | From £6,995 (installed) |
| Huawei Luna | 5 – 15 | 100% | LFP | £3,000 – £6,000 |
| SonnenBatterie 10 | 5.5 – 22 | 100% | LFP | £4,500 – £12,000 |
| LG Chem Resu | 9.6 | 95% | NMC | £5,000 – £6,000 |
| Alpha ESS Smile 5 | 5.0 | 96% | LFP | From £3,400 |
As you can see, there’s a range of battery capacities and price points available.
The most affordable out of these examples is the Alpha ESS Smile 5. This is certainly a good battery choice. It’s stackable with other modules, comes with a 10 year performance guarantee, has a good DoD and is relatively compact. Similar to this is the Huawei Luna.
Towards the higher end are the likes of Tesla, SonnenBatterie and Powervault. These batteries all offer a 100% DoD and have higher storage capacities. For example, the Tesla Powerwall 2 has a large 13.5kWh capacity but is still well-priced for what you get.
To help you a little more, we’ve also created a table that breaks down the price ranges based on capacity.
| Capacity (kWh) | Price Range |
| 3-5 | £2,500 – £5,000 |
| 5-10 | £3,000 – £7,500 |
| 10-15 | £6,000 – £10,000 |
| 15+ | £8,000 – £15,000+ |
It’s important to note that these prices are approximate and may vary depending on the factors described and your home set up.
What to expect from installation costs
As well as the cost of the battery storage system itself, homeowners have to consider the installation costs when budgeting for their investment. These can sometimes be hidden or unclear initially.
In terms of the process, your battery will need a dedicated circuit and isolator switch as a minimum. So unless you’re a qualified electrician yourself, you need to get a professional in. Many battery and inverter manufacturers insist on this in order to validate their guarantees.
To combine your existing solar panel system with a solar battery, you can expect labour costs ranging from £600 to £1,000 per day, potentially pushing up towards £2,000. The total installation cost will depend on the complexity of the job and the time required to complete it. Of course, you can have storage batteries without solar panels too, which is an easier install.
Some battery storage manufacturers and sellers provide a single price that includes both the battery and installation. This is always handy. For example, I put some of my details in and annual electricity use and received a number of fixed quotes on Heatable for the following battery and installation packages:
- Tesla Powerwall 2: £7,695
- Alpha ESS Smile 5kWh: £3,395
- Alpha ESS Smile 10.1kWh: £4,995
- Enphase IQ 5P: £4,795
- GivEnergy 13.5kWh: £6,995
These prices didn’t involve connecting the battery system to an existing solar array. It’s always best to seek proper, professional guidance before you go ahead with a storage battery installation to make sure everything is lined up to accommodate the specific needs of your home.
Increasing cost-effectiveness with the right energy tariff
The cost-effectiveness of a home battery storage system is heavily influenced by energy costs and the tariffs available to you.
Time-of-use tariffs, such as Octopus’ Flux tariff, can significantly benefit homeowners with battery storage systems. These tariffs offer lower electricity rates during off-peak hours, allowing you to charge their batteries when energy is cheaper. The stored energy can then be used during peak hours when electricity prices are higher, reducing the homeowner’s reliance on the grid and lowering their overall energy costs. This is just one of the reasons to get battery storage.
For example, the standard Octopus Flux tariff offers import rates of 14.8p/kWh between 02:00-05:00 every day, which goes up to 34.53p/kWh during the day. Read more on Octopus Energy and battery storage systems here.
With the right battery, you shouldn’t have too much excess energy. However, if you do, or if you expand your solar panel array for example, you can also make the most of export tariffs. Under the SEG, these tariffs pay you for exporting excess renewable energy back to the grid. It can also help to improve the cost-effectiveness of battery storage. Learn more about selling electricity back to the grid with battery storage.
How much can you save with battery storage?
Battery storage plus the right tariff can be really cost-effective. For example, a household with a 5kWh battery and an average daily consumption of 10kWh could save at least £200 per year by charging their battery during off-peak hours and using the stored energy during peak times.
We’ve felt the savings ourselves here at Eco Affect. Our owner Matt invested in a Huawei Luna Battery with a capacity of 10kWh. This cost £6,000 for the battery and installation. He paired the battery with Octopus Energy’s Go tariff, which offers four hours of cheap electricity at 8.5p/kWh between 12:30am and 4:30am.
By charging the battery during these off-peak hours and using the stored energy during the day, Matt saved £2.25 per day. Sounds small, but over the course of a year this totalled up to £821.25.
It gets better too. When battery storage is paired with solar panels, you can charge the battery up with free energy during the high summer months. In total, Matt estimates that the combination of battery storage and solar panels saves him around £1,000 per year on his energy bills. Read more on how much would you save with battery storage.
Are grants and funding available for battery storage systems?
Whilst there are currently no direct grants specifically for home battery storage systems in the UK, there are some financial incentives and schemes that can help offset the cost of installation.
From February 2024, battery storage systems are now available to buy VAT free. This essentially gives you a 20% discount, resulting in close to £1,000 for most batteries.
The only other incentive is the Smart Export Guarantee scheme, as discussed above, which makes sure you get paid for any excess renewable energy exported to the grid.
As the UK continues to focus on its net-zero carbon targets, it’s possible that more grants and funding opportunities for home battery storage systems may become available in the future.
Other factors to consider when choosing a battery storage system
To get the right home battery storage system, you’ll need to consider a few other factors alongside the initial cost.
One of the top factors is assessing your household’s energy consumption and generation (if you already have solar panels). These figures give you a direct reading to help determine the appropriate battery capacity and power output for your home’s needs.
Consider your average daily energy usage, peak consumption times and the amount of excess renewable energy your solar panels generate if appropriate. This information will help you select a battery that can effectively meet your energy storage requirements and maximise your self-consumption of renewable energy. Check out this guide on what size battery storage system do I need?
Future-proofing and scalability are also important considerations. Nowadays, a lot of battery storage systems offer modular designs that allow for easy expansion. Called ‘stacking’ in the battery storage market, this enables you to increase your storage capacity as your requirements grow.
This can be especially relevant if you anticipate changes in your energy needs over time. For example, you may be thinking of adding more solar panels, switching to an electric vehicle or installing other energy-intensive appliances in the future.
Some of the best stackable batteries have smaller capacities which allows you to reach a more specific figure. For example, the Tesla Powerwall 2 is scalable, but the jump is from 13.5kWh straight up to 27kWh capacity. However, batteries such as the Enphase IQ 5P allow you to jump up in 5kWh increments to reach a capacity that will work better for your home.
Compatibility with existing solar PV systems is another key factor to consider. If you already have solar panels installed, it’s essential to choose a battery storage system that can easily integrate with your existing setup. This will involve taking a look at the inverter type (AC or DC coupled) as well as any necessary electrical upgrades.
Finally, warranty coverage is certainly worth consideration when investing in a battery storage system. A good guarantee provides you peace of mind and protection over the long term. Look for manufacturers that offer comprehensive warranties covering both the battery and the associated components, such as the inverter and control systems. 10 years should be the minimum warranty period, with some good brands going up to 15 years.
As battery storage technology continues to advance and costs decline, the financial and environmental benefits of these systems will only become more compelling for homeowners. By investing in a well-chosen battery storage solution, you can take a significant step towards a more sustainable and energy-independent future for your home.
