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The Rise of Home Batteries in the UK As the UK prepares for a sharp rise in home energy bills, consumers are turning to green home upgrades, including heat pumps, solar panels, and electric vehicles. However, it's the falling cost of home batteries that's expected to unlock the greatest possible cost savings from these investments. How Home Batteries Work Home batteries allow households to store excess energy generated by solar panels or the grid during off-peak hours, reducing reliance on the grid during peak hours. This can lead to significant savings on energy bills. The Cost of Home Batteries The cost of a home battery depends on its capacity, with larger batteries typically costing more. On average, installing a 4kWh battery costs around £5,500. However, costs are falling, making home batteries more affordable. Potential Savings Households could save up to 87% on their electricity bills by using a home battery. A typical home in Milton Keynes with a 5kWh battery and a 4 kWh solar system could earn £300 a year by selling unused electricity back to the grid and save a further £458.45 a year by avoiding higher costs at peak times. The Future of Home Batteries As the cost of home batteries continues to fall, they are likely to become an increasingly popular choice for households looking to reduce their energy bills. With the UK government forecasting a rise in energy bills, home batteries are poised to play a key role in helping households manage their energy costs.

The Lead The boss of the UK's biggest energy supplier has suggested that some households would accept an occasional electricity blackout in exchange for much lower energy bills. This controversial statement comes on the anniversary of Europe's largest power outage, which left tens of millions in Spain and Portugal without electricity. The Energy Trade-Off Proposal Greg Jackson, chief executive of Octopus Energy, told an industry conference that many households in Spain, which has a growing renewable energy business, would say they were happy to accept "the odd blackout" in return for electricity costs that are 25% lower. "To be really clear, I'm not advocating for blackouts, but if you asked Spanish consumers 'would you accept the odd blackout in return for electricity costs that are 25% lower, or don't have spikes, or a more reliable economy?' enough of them would say yes," he said. The Changing Perception of Power Outages People would be "far less bothered" about a blackout now than they might have been in the past, Jackson added, because they could continue watching things on their laptop during a power outage. "They've got a battery in there that gives them a couple of hours," Jackson said. He added that home batteries, which are sold by Octopus Energy, are "so cheap now" that even people who need reliable electricity to run medical equipment would be able to tolerate a blackout. The Cost of Grid Investments Jackson made the comments in response to an audience question about the challenges of running a renewables-heavy energy system such as the one in Spain. He told conference delegates that the greater challenge in running a clean power system was in controlling the cost of network investments. Octopus Energy has been outspoken in warning against grid investments that might prove to be unnecessarily expensive as new technologies emerge. The Spanish Precedent The widespread power outage in Spain and Portugal claimed the lives of at least six people, including two people with medical difficulties who died after they were unable to run breathing equipment. Renewable energy critics initially blamed Spain's reliance on wind and solar power for the outage, but the official report attributed "multiple interacting factors", involving conventional power plants, renewables and the power network for playing a role in Europe's largest power outage. The Industry Response A spokesperson for Octopus Energy said: "Countries that have embraced cheap renewables and built in flexibility – like Spain – are seeing dramatically lower energy prices and far less exposure to spikes. Meanwhile, the UK risks doing the opposite: hardwiring in high costs with tens of billions of grid and network spending, without enough transparency on whether all of it is really needed." "Build flexibility, and bills go down. Ignore it, and we risk overbuilding for decades," the spokesperson added. The UK's Energy Future Speaking at the same event, Fintan Slye, the chief executive of the National Energy System Operator, which is responsible for keeping Great Britain's lights on, said that while there is expected to be a "step change" in the way households use electricity that "doesn't go as far as blackouts". Slye said added that significant investments in the power grid were still needed to enable electricity to be transmitted from where it is generated to areas where people are located.