We’ll save more than £822 (without factoring in solar = FREE energy) on electricity costs this year due to having our Battery Storage installed in the summer of 2023.
We’re all worried about rising energy costs, but where there is technology there is hope, battery storage systems are emerging as a game-changing solution for homes and buildings.
Battery storage can be integrated into any property, serving as a ready-made, on-site storage unit. This technology is designed to optimize energy usage and costs.
How does battery storage work?
Simply put, it allows you to charge when electricity prices are low, typically during off-peak hours, and then use this stored energy when prices spike.
More benefits than just saving money.
The benefits of battery storage go beyond mere cost-saving. This type of system can play a pivotal role in energy independence, reducing your reliance on the grid, and even contributing to a more sustainable lifestyle.
Now that renewable energy sources like solar and wind are becoming more prevalent, battery storage provides a practical solution to the intermittent nature of these sources, ensuring that the power generated doesn’t go to waste but is instead harnessed for later use.
Moreover, battery storage isn’t just about financial savings; it’s a forward-thinking approach to energy consumption.
As the human race navigates through the challenges of climate change and seeks more sustainable living practices, battery storage stands out as a beacon of innovation and environmental responsibility.
In the following sections, we’ll delve deeper into how this technology has revolutionized our approach to energy usage, especially during the winter months, and the significant savings it has afforded us.
Initial Investment and installation costs
We opted for a Huawei Luna Battery. At the time we wanted to make sure we could expand on the system if needed and with the Luna set-up you could have up to 30Kwh of storage.
The battery and installation came in at £6k for a 10kw capacity. This was in summer 2023 and costs have reduced dramatically since then along with the Government removing VAT from February 2024.
Our energy costs from the grid
We use Octopus Energy, they’re amazing by the way, as they’re renewable energy. We’ve been very conscious of our carbon footprint for a long time. And Octopus allow us to power our home with green energy.
We’re on Octopus Go as a tariff currently meaning we get 4 hours of cheap electricity between 12.30 and 4.30AM but our peak cost per unit is 31p per Kwh which isn’t bad given current costs but it’s still way more than we used to pay.
How we calculated the savings above
We charge the battery every night between 12.30 and 4.20AM at a rate of 8.5p per Kwh, if we didn’t have the battery we would be paying 31p per Kwh for the same energy during the day or peak times.
So, 85p to fully charge the battery and £3.10 without the battery.
310 – 85 = 225 = £2.25 per day saving.
365 x £2.25 = £821.25 per annum.
Now, there are differences to this of course. We have a solar array so in summer the savings are even bigger as we don’t need to charge the battery overnight. So the real savings are more likely to be around £1000 per year for us.
Long term savings calculated
The battery will pay for itself in 6 years with the existing costs for each Kwh, but if this increases the payback time would decrease. And, as we have seen the price of electricity is wildly dependant upon a whole range of outside influences.
The battery has a 15 year warranty, so at £1000 per year savings we’ll save £9000-10,000 over the warranty life of the system.
Environmental Benefits of Battery Storage
Installing battery storage in homes and buildings is more than just a positive financial decision; it’s a stride towards environmental leadership.
At the heart of its environmental impact is the ability to harness and optimize renewable energy.
The wind keeps blowing when we’re all asleep but not using as much electricity.
In a world increasingly turning towards solar and wind energy, battery storage systems ensure that the intermittency of renewable sources does not hinder their efficiency.
By storing excess energy produced during peak sunlight or wind conditions, they enable us to use green energy even when the sun isn’t shining or the wind isn’t blowing, dramatically reducing our reliance on fossil fuels.
Furthermore, battery storage contributes to the reduction of carbon emissions. Traditional energy grids often rely heavily on fossil fuels, which, when burned, release significant amounts of carbon dioxide and other greenhouse gases into the atmosphere. By enabling more efficient use of renewable energy, battery storage systems help in cutting down these emissions. This shift is crucial in the fight against climate change, as reducing our carbon footprint is imperative for a sustainable future.
The integration of battery storage into our energy systems is a powerful tool in the pursuit of an environmentally sustainable future.
There are some potential challenges to using battery storage, however.
Here are some of the key challenges associated with battery storage:
- High Initial Costs: One of the main barriers to widespread adoption is the initial investment required. The cost of purchasing and installing these systems can be substantial, making it a significant consideration for homeowners and businesses. While prices have been decreasing, the upfront cost still remains a hurdle for many.
- Battery Lifespan and Degradation: Batteries have a limited lifespan and their storage capacity diminishes over time. This degradation means that the battery will gradually hold less charge and will eventually need to be replaced. The rate of degradation depends on various factors, including battery technology, usage patterns, and environmental conditions.
- Environmental and Recycling Concerns: While battery storage helps reduce carbon emissions, the manufacturing and disposal of batteries pose environmental challenges. Batteries contain materials that can be harmful if not disposed of properly.
- Size and Space Requirements: Installing a battery storage system requires physical space, which can be a constraint for some properties. The size and aesthetics of these systems are considerations for homeowners, particularly in urban areas where space is at a premium.
- Safety Concerns: Batteries, especially large ones used in storage systems, can pose safety risks. Issues such as overheating, fire hazards, and chemical leaks, although very rare, are concerns that need to be addressed through proper system design and safety protocols.
Given all the above, is battery storage worth it?
In our opinion, it is a great investment for all properties. You save money and lots of it. You help provide more balance to the energy grid but more importantly, you’re storing the green energy that might have been wasted due to it not being used.
The investment that pays for itself in hard cash but also helps you save the world one tiny bit of carbon at a time!
FAQ’s
What’s the best battery to use with Octopus Energy?
Currently, we would recommend the GivEnergy battery solution. This is due to it being the only one that you can use with the Octopus Intelligent system at present. We’re hoping the Huawei Luna will be added soon but you can get a price per Kwh down to as little as 4p on that tariff.
You can check out our review of the GivEnergy battery here, GivEnergy Battery Review.
