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With the UK’s target to achieve net zero carbon emissions by 2050, more homeowners and businesses are turning to renewable energy sources, with solar panels becoming a popular choice for cleaner energy. Apart from promoting sustainability, renewable energy also allows property owners to be energy-independent and plays a big part in reducing energy bills.
However, to take full advantage of your solar panels and to make the most of their potential, integrating them with a battery storage system is the way to go. These systems store not just excess energy, but cheaper energy to maximise energy efficiency and further cut costs.
The energy stored in battery storage systems can be sourced from renewable sources such as solar panels or electricity generated from the grid during off-peak hours. Regardless of the energy source, they offer a viable alternative to traditional energy generation and a promising solution for homes and businesses looking to increase their energy efficiency and lower their energy bills.
Read on to find out all about battery storage systems, how they can help you save money, and the factors involved in potential savings:
Battery storage systems are technologically advanced storage devices that allow you to store electrical energy for later use. They are typically made up of a few key components that include a battery system, inverter, battery management system, environmental controls, sensors, alarms, and a fire suppressant system.
The way that these systems work is that they store direct current (DC) electrical energy, which is converted into an alternating current (AC) by the inverter when the electricity needs to be used to power properties and appliances. Battery storage systems don’t generate electricity but are simply devices used to hold and store excess electricity for later use.
The batteries can be charged by either storing excess energy generated by renewable energy sources (solar panels or wind turbines) or by drawing power from the grid. Both ways allow incredible cost savings.
Battery storage systems are a great investment in terms of energy efficiency, reduced carbon emissions, energy independence, and cost savings. For all these reasons, they have become a hot topic of discussion around the world with homeowners and businesses installing them on their properties.
When it comes to cost savings and saving money on energy bills, here are the different ways battery storage systems can help you:
The rise of renewable energy sources, such as solar panels, in the energy sector has homes and businesses switching from traditional energy generation to clean energy and reducing their reliance on polluting fossil fuels. The UK has about 4 to 5 hours of peak sunlight almost every day, which makes solar panels a worthy investment.
However, the sun’s intermittent nature poses somewhat of a challenge with the panels unable to work at full capacity on cloudy and rainy days and when the night falls, and that is where battery storage systems truly deliver.
Solar panels/wind turbines and battery storage systems go hand in hand when it comes to producing clean energy and harnessing the energy of the sun/wind to its maximum potential. Battery systems store surplus energy from renewable sources and release them to be used when needed the most.
When it comes to solar panels, battery storage systems are crucial tools for maximising their potential by bridging the supply and demand gap. With the right solar battery storage system, solar power can be turned into a reliable and consistent source of power, which means powering your property all day and night, despite the availability of adequate sunlight.
Energy produced by renewable sources such as solar panels is technically free, apart from the initial setup and occasional maintenance costs. To use this free energy as much as possible, integrating the solar system with battery storage is the way to go.
Solar panels produce the most electricity during the daytime, when the sun is shining the brightest, and the excess and unused energy produced during this time is wasted. With battery storage systems, this excess energy can be efficiently stored to be used later when the panels aren’t producing electricity, such as in the evenings and nighttime when sunlight is either insufficient or unavailable.
Without battery storage, you would have to rely on the grid to power your homes and businesses during these times, adding to your energy costs. Battery systems help maximise your self-consumption and make full use of the panels, regardless of the solar conditions. They offer flexibility in managing both energy production and consumption, allow property owners to be more energy independent, and help save money on energy bills by storing and using free electricity to power homes and businesses.
In addition to all of this, you can benefit from the Smart Export Guarantee (SEG) – a scheme introduced by the UK Government that offers export tariffs for a variety of small-scale low-carbon energy generating technologies including solar panels and wind turbines as part of pursuing the target of net zero carbon emissions by 2050.
With the SEG, homeowners can get tariffs for renewable energy that they don’t use. The amount is dependent on your SEG licensee, and the rates are decided by the energy supplier. Generally, you can get between 1 to 30.31 p per kWh.
The electrical grid is responsible for supplying electricity to homes and businesses all over the country. With the demand for electricity increasing with each passing day, the strain on the grid is also increasing, leading to unreliability and power outages, especially during peak hours. This issue can be exacerbated by weather conditions such as storms, floods, hurricanes, heat waves, and wildfires.
For these reasons, people are investing in alternative energy sources such as solar panels, wind turbines, and battery storage systems. By integrating battery systems with renewable energy sources, you can reduce your reliance on the grid, especially during peak times. This not only relieves pressure off the grid and works as a great backup power source during outages but also allows you to use more of your own stored solar or wind energy during peak times, saving money on electricity that you would otherwise have to pay for.
Peak hours are times when the electricity demand is the highest during the morning, evening, and business working hours. They are typically between 8 am and 10 pm, which is when energy companies raise their prices.
If you wish to avoid these high prices, investing in battery storage systems is the way to go. By storing the excess solar energy and using it when the energy prices are the highest, you can substantially save on your energy bills and make the most efficient and cost-effective use of your panels.
With battery storage systems, you can also benefit from time-of-use tariffs that offer cheaper electricity rates during off-peak hours, which is when the energy demand is the lowest between 10 pm and 8 am. While the rates during off-peak hours vary depending on the energy supplier, you can expect to pay significantly less during these hours as compared to peak energy consumption hours.
Even if you are not generating your own electricity using solar panels or wind turbines, you can still benefit from using a battery storage system by charging it using electricity from the grid during off-peak hours and using it during peak hours. This allows you to store energy purchased at a much lower cost instead of buying it at the peak rate and using it to power your home or business when the electricity rates increase. This can lead to great savings on your energy bills over time and is a great way to use battery storage systems.
Battery storage systems are an incredible investment that not only plays a huge role in sustainable development but also leads to substantial cost savings over time.
According to estimates, powering your property with a solar panel can slash your electricity bills to around half, while combining solar panels with a battery storage system can reduce your energy bills by around 70 to 80%. Some systems may even go up to 85%! The exact savings amount depends on a variety of factors, which we will discuss in a bit, but one thing is for sure: battery storage systems = great cost savings.
As an example, let’s look at an average small home with a 5-kWh battery storage system (no solar panels) and an annual energy consumption of 1,800 kWh/year. Considering that their peak electricity tariff is 24.5p/kWh and the off-peak tariff is 9p/kWh, this household could save around £280 per year on their energy bills by charging their battery during off-peak hours and using it during peak hours.
Now let’s look at a medium-sized home with an 8-kWh battery storage system, solar panels generating 2,800 kWh annually, and an annual energy consumption of 2,700 kWh/year. With the same electricity tariffs as the example above, this household could save up to £600 per year on their energy bills by charging their battery during off-peak hours and using it during peak hours. In addition to that, they could also earn around £50 per year through the Smart Export Guarantee (SEG) for any excess energy exported to the grid.
When it comes to long-term savings with battery storage systems, you need to look at the battery’s lifespan, with most modern battery technologies lasting around 10 to 15 years. To assess the long-term savings, you need to factor in the total savings over the battery’s lifetime compared to the initial cost of the battery storage system.
The return on investment (ROI) for battery storage systems can range from 6 to 12 years. The exact time, however, depends on factors such as:
There are several types of battery energy storage systems available, with the most notable difference being the type of chemicals they use. Some are more efficient than others and have a longer lifespan; therefore, adding up to more savings and a quicker ROI.
Some of the most common types of battery storage include lithium-ion batteries and lead-acid batteries, both of which are used mainly in domestic settings. Other types include flow batteries, Sodium-Sulfur batteries, Nickel-Cadmium batteries, Zinc-Bromine batteries, and solid-state batteries.
The size and capacity of the battery refer to the amount of energy it can store. The larger the size and capacity of the battery, the more energy it can store. If this energy is stored from the grid during off-peak hours at a cheaper price, or harnessed from renewable sources, the potential savings can be substantial.
Depth of Discharge (DoD) is another important factor to consider as it defines the percentage of the battery’s total capacity before it needs to be recharged. A higher DoD means that you can use more of the battery’s stored energy before recharging it, and it relates to the increased efficiency of the batteries and an extended lifespan.
Your daily energy consumption has a huge impact on how much you spend on energy and how much you ultimately save. Your energy usage as well as the times when you consume the most energy directly affect your cost savings from your battery storage system.
If you are using more energy during peak hours and are running high-energy appliances, you can expect to pay for it as well. A battery storage system can help in this case by reducing reliance on the grid and allowing you to use the stored energy. Some battery systems even use smart software for energy management that can optimise stored energy consumption and efficiently manage when to store, use, or sell the excess energy for maximum cost savings.
While a battery storage system, by itself, provides incredible cost savings, these savings can be increased tenfold when used with renewable energy sources such as solar panels and wind turbines.
The size of your solar/wind installation and the amount of energy it can generate has a direct impact on the excess energy being stored by the battery storage system which can then be used later when needed. The more excess energy that your renewable energy installations can make, the more energy the batteries will be able to store, and the more cost savings you can enjoy.
While it is important to invest in a battery storage system that is efficient, reliable, and perfect for your energy needs, it is equally important to have it regularly maintained to extend its life and prevent any serious issues from arising.
Keeping a proper maintenance schedule for your battery storage system, as well as your solar/wind installation if you have one, will ensure both systems keep working at full capacity and provide you with the maximum benefits. Having a professional conduct tests and inspections will help give an insight into the health of these systems and address any issues that may lead to pricey replacements or potential system failure.
Calder Electrical Services provides a wide range of solutions to help you play your part in making the world a more sustainable place.
If you wish to have solar panels installed on your residential or commercial property, our experts can conduct a site visit to determine your requirements and propose the best type of solar system for your needs.
We also offer battery storage installation so that you can minimise any wastage of the energy you create. This will help lower your energy bills and make you more independent from the grid.
We have been providing electrical services to residential, commercial, and industrial properties for over 40 years and are specialists in all aspects of electrical installations, maintenance, and testing.
All our work is fully insured and meets the current regulations and standards set by the NICEIC. Also, all the notifiable work is signed off by the local authorities.
Contact us here or call us at 0800 612 3001 to get in touch with our professional electricians for more information on battery storage systems and how they can help you save money on energy bills.
Photo by Giorgio Trovato on Unsplash
