We’ve all seen the climate change headlines that are getting more dramatic every week, which when you add the backdrop of record rising energy costs now at levels not seen since 2008, smaller energy suppliers collapsing and the continuing release of the cap on standard energy tariffs the future doesn’t look good.
Maybe some of these dramatic headlines are helping to drive the shift towards alternative options for businesses and consumers in the UK to protect themselves from the steepest energy bills in 10 years. But what are your options, and how effective are they?
Why does having a battery make sense?
Well, to explain this further we need to talk about energy tariffs, but we’ll try to keep it simple. There are a number of agile tariffs available on the market that enable consumers to buy cheaper energy at certain times of the day, but at normal prices when the wholesale cost of energy is more expensive. So, for example, you could be on a tariff where you pay 5p per unit for 4 hours per day at night, then 15p per unit for the remaining 20 hours.
However, we all know that energy prices have risen hugely over the last six months (and are set to continue rising into 2022 as the price cap is reviewed again in April), so if you haven’t fixed your energy tariff, standard unit prices are likely to rise to 25p and beyond in the coming months.
Wouldn’t it be better to use and store as much energy as possible at the cheapest rate?
Without a battery, you can do that by switching on certain appliances at night, such as a dishwasher or washing machine for example, but you still have to use electricity during the day which will cost the higher rate.Imagine if you could move your entire home energy usage into the cheaper 5p period?
It’s unrealistic to expect that you could completely remove the higher rate cost, but with a battery installed in your home, the vast majority of energy could be bought at the cheaper rate, which is then used to power your home for the rest of the day.
For example, in a regular family home the average electricity usage per day is 12 kWh. With an 8.2kW battery installed, you could store and power 10 of those hours at the cheaper rate, with just 2 hours at the standard rate (as per the table below):
Using this example, you can now compare the figures against what you could reasonably expect to pay on a standard tariff, and also how this could rise in the future as energy prices continue to go up.
So, if your average unit rate for electricity is 30p or more, the likely savings with a battery are around £1,000 per year against standard tariff rates.
Add a battery to an existing Solar PV system to save even more
But the benefits don’t end there – the figures above only take into account the power that can be stored and used with a battery alone. Think of how much more you could save if you added solar panels into the mix as well? By generating and using your own solar energy during the day, with any surplus energy being stored by the battery, you can then secure your sustainable future. What’s more, the solar panels will charge the battery, helping you to purchase even less energy from the grid.
Although home battery technology has vastly improved over the last few years, the good news is that costs have reduced rapidly and you can now purchase an 8.2kWh battery for around £4,500. That’s still a significant investment, but with the savings highlighted above, you can expect a payback period of less than 5 years based on current averages. That’s without any other renewable energy technology included, and with energy prices set to rise to 35p per unit and beyond, this payback period will just get shorter and shorter.
Once the battery is installed, you’ll benefit from the savings for a very long time indeed. What’s more, a battery is portable – if you move house, the battery can move with you. If you compare the investment in a battery to the returns you could get from a bank over a similar period, the differences are huge – just think what you could save over 10 years.
It’s safe to say that batteries are increasing their power to save money on your energy bills. Whether you have solar PV installed or not, the economics really do make sense if you are looking to invest in longer term savings and protect yourself from continued energy price rises. For more information and details on the batteries available from Caplor Energy, please visit our website here.
Caplor Energy – Leading by example to secure a brighter future
As one of the first renewable energy businesses established and accredited with the Microgeneration Certification Scheme (MCS), the team at Caplor Energy are passionate advocates of renewable energy, with a mission to inspire businesses, communities and home-owners to install renewable energy systems that will help to deliver a zero carbon future to conserve and enhance the long term social and environmental future of our planet.
We have many years’ experience of specialising in the design, installation and maintenance of a wide range of renewable energy systems across the UK from solar PV and battery storage to renewable heating systems, solar thermal and electric vehicle charging. We’re award winning, ‘excellent’ rated on Trustpilot and committed to leading by example, with many renewable energy installations at our base at Caplor Farm in the beautiful Wye Valley. Our aim is to support all our customers through knowledgeable, unbiased advice, quality products and reliable service in our quest for a greener, more sustainable economy that will provide a better environment for our future generations.
For more information about Caplor Energy, watch our short video here.
Whether you’re interested in generating power from the sun, storing and offsetting energy with batteries, using heat pumps to keep your buildings warm or charge your electric vehicles, there’s a renewable way forward, with significant long term savings available whilst doing your bit to reduce the impact of climate change.
To find out more about what you can do to save money whilst reducing your carbon footprint, talk to our team of specialists at Caplor Energy who will be able to give you clear, unbiased advice on the best solutions for you.