Artisan Electrics | Premium Solar & Electrical Services

Published: May 15, 2024

By James Wilson, Technical Director

12 min read

Home battery storage system installation

Introduction

As energy prices continue to rise and the UK grid faces increasing pressure, many homeowners are considering battery storage systems to complement their solar installations or as standalone energy management solutions. But with premium systems costing between £5,000 and £15,000, the question remains: is battery storage worth the investment?

This comprehensive guide examines the financial aspects of battery storage, helping you make an informed decision based on your specific circumstances, energy usage patterns, and financial goals.

Key Takeaways

Battery storage systems typically cost £5,000-£15,000 for premium residential installations
ROI periods range from 7-12 years depending on usage patterns and electricity tariffs
When paired with solar PV, batteries can increase self-consumption from 30-40% to 70-80%
Time-of-use tariffs can significantly improve the financial case for battery storage
Non-financial benefits include energy independence, backup power, and reduced carbon footprint

Understanding Battery Storage Systems

Before diving into the financial analysis, it's important to understand what you're investing in. A home battery storage system allows you to:

Store excess electricity generated by solar panels for use when the sun isn't shining
Charge from the grid during off-peak hours (when electricity is cheaper) and use that stored energy during peak hours
Provide backup power during grid outages (depending on system configuration)
Participate in grid services and demand response programs (with compatible systems)

Premium Battery Options

At Artisan Electrics, we focus on premium battery storage solutions that offer superior performance, reliability, and longevity. The main options we recommend include:

Tesla Powerwall

• 13.5 kWh usable capacity
• 7kW peak / 5kW continuous output
• 10-year warranty
• Sleek design, app monitoring
• £8,500-£11,000 installed

Sonnen Battery

• 5-15 kWh modular capacity
• 3.3kW continuous output
• 10,000 cycle warranty
• German engineering, expandable
• £7,000-£14,000 installed

LG ESS Home

• 9.8 kWh usable capacity
• 5kW continuous output
• 10-year warranty
• Compact design, reliable
• £7,000-£9,500 installed

Financial Analysis: Is It Worth It?

Battery + Solar PV Combination

When paired with solar panels, battery storage can significantly increase your self-consumption rate - the percentage of solar energy you use rather than export to the grid.

Example Scenario: 6kW Solar System + Battery

Without Battery:

Solar self-consumption: 30-40%
Annual savings: £900-£1,200

With Battery:

Solar self-consumption: 70-80%
Annual savings: £1,600-£2,000

Additional Annual Savings: £700-£800

Battery Cost: £8,000 (average premium system)

Simple Payback Period: 10-11.5 years

The financial case improves significantly if you can access time-of-use tariffs, where electricity costs less during off-peak hours. This allows you to charge your battery when electricity is cheap and use stored energy when it's expensive.

With Time-of-Use Tariff

Using a tariff with significant price differences between peak and off-peak rates (like Octopus Agile or Economy 7) can reduce the payback period to 7-9 years.

Beyond Financial Returns

While ROI is important, many of our clients invest in battery storage for reasons that go beyond simple payback calculations:

Energy Independence

Reducing reliance on the grid and energy companies provides peace of mind and protection against future price increases.

Backup Power

With the right configuration, battery systems can provide critical power during outages, which is increasingly valuable as extreme weather events become more common.

Environmental Impact

Batteries help maximize renewable energy usage and can reduce carbon emissions by shifting consumption away from peak times when the grid relies more on fossil fuels.

Home Value

As energy efficiency becomes more important to buyers, properties with battery storage systems may command premium prices and sell faster.

Real-World Case Studies

London Townhouse: Tesla Powerwall + Solar

The Thompson family installed a 6.6kW solar system with a Tesla Powerwall in their Kensington townhouse. After 18 months, they've achieved:

82% solar self-consumption rate
68% reduction in grid electricity usage
£1,850 annual savings on energy bills
Projected payback period: 8.5 years

Devon Coastal Home: Sonnen Battery (Standalone)

The Wilsons installed a standalone 10kWh Sonnen battery in their coastal Devon home, primarily for backup power during frequent winter outages. Their results:

Switched to Octopus Agile tariff
£680 annual savings through tariff arbitrage
Maintained power during three outages (6-8 hours each)
Projected financial payback: 12 years
"The peace of mind alone is worth the investment" - Client testimonial

Conclusion: Is Battery Storage Worth It?

Based on our analysis and real-world experience with hundreds of installations, we can conclude that battery storage is financially worthwhile for:

Homeowners with existing or planned solar PV systems
Properties with high electricity usage during peak hours
Households able to access time-of-use tariffs
Areas prone to power outages where backup power is valuable
Environmentally conscious homeowners looking to maximize renewable energy usage

While the financial payback period of 7-12 years may seem long, it's important to remember that premium battery systems have warranties of 10+ years and expected lifespans of 15+ years. When combined with the non-financial benefits, battery storage represents a sound investment for many UK homeowners.

As with any significant home improvement, we recommend a personalized assessment to determine if battery storage is right for your specific situation.