UK Energy Prices: Why Home Batteries Are Becoming Essential
UK Energy Prices: Why Home Batteries Are Becoming Essential
The Energy Price Squeeze
Over the past few years, UK households have seen unprecedented increases in electricity prices, far outpacing inflation. Although wholesale costs have fallen from their peak of the 2022 conflict between Russia and Ukraine, bills remain significantly higher than they were five years ago, and there’s no sign of returning to pre-2020 levels. In fact, after the rise in price during the Ukraine conflict, where the government stepped in to help with bills, prices have bottomed out and are increasing again.
The average household now pays over £882 a year for electricity, and fluctuations in the global market mean prices can spike again without warning.
Taking the average annual increase in electricity prices of the last 20 years and applying it going forward, means that electricity costs will more than double in the next 10 years, and we will be paying 64p per unit of electricity. That means in ten years the average electricity bill will be over £1,800 per year.
With the gap between inflation and GDP compared to electricity prices widening every year, it means it will become more and more difficult to afford. For households, if the economy (and wages) aren’t growing fast enough, higher energy prices directly erode disposable income. The graph below shows the difference between electricity price inflation, compared to the standard inflation rates of GDP And CPI. The gap between them is getting bigger and bigger each year. You can also see that prices have bottomed out after the spike and are now going back up.
UK Electricity Prices 2003–2025 in GBP per kWh – Modern Infographic
Why Home Batteries Are a Game-Changer
A home battery lets you store cheap, green electricity either from your own solar panels or from the grid during off-peak hours. You can then use it when electricity costs are at their highest.
The benefits are clear:
Cut peak-time usage: Avoid paying expensive daytime or evening rates.
Use more of your solar: Store excess solar energy instead of exporting it for pennies.
Shield from price spikes: Locked-in savings even when tariffs jump.
Greater energy independence: Rely less on the grid and more on your own supply.
The ROI of Battery Storage
In the UK, many households see a return on investment within 4 - 6 years with a typical first year ROI of around 15-20%. This is significantly more than the money sitting in a bank at an interest rate of 2-4% and is a major reason why it is such an attractive investment to the financially astute. Payback depends on usage patterns, battery size and tariff choice but with energy prices unlikely to fall dramatically, the financial case for batteries has never been stronger.
Pairing a battery with solar panels can further accelerate payback — often reducing bills by up to 70%, but you don’t even need solar to benefit from cheaper bills, you can have a battery even without solar.
Looking Beyond Cost Savings
Not only can a battery reduce your electricity bill by 80% it can also:
• Backup power during outages (additional work required for this)
• Reduce carbon footprint by maximising self-consumption of clean energy
• Prepare for the future with smart energy management systems
Is It Worth It Without Solar?
Yes, battery storage can still be worthwhile without solar. Time-of-use tariffs such as Octopus Agile, Intelligent Octopus or Octopus Go as well as E-on Next Drive allow you to charge your battery overnight at low rates and use that power during the day, creating meaningful savings even in winter. Some of these rates require an EV, but many don’t and they change all the time, so it’s worth checking around for the best deals.
Final Thought
Energy prices may rise and fall, but the trend over time has been clear: costs are high and volatile. A home battery gives you back stability, more control and peace of mind.
If you’d like a free, no-obligation battery savings assessment, contact us today. Call 01159 646 24 94 or submit your contact details HERE and we will give you a call.
