Simple batteries can save UK homeowners £255 a year off energy bills says E.ON

Households grappling with soaring energy bills could slash an average of £255 annually by fitting batteries, a groundbreaking trial has revealed.

E.ON Next, which conducted the pilot alongside Coventry City Council, claimed that extending the scheme to fuel-poor homes across Britain would assist the government in fulfilling its election promise to cut £300 from their bills - a target widely viewed as challenging to accomplish.

Five million households are classified as being in "deep fuel poverty" - allocating more than 20% of their income to energy costs.

Meanwhile, the government is striving to enhance the electricity system's flexibility as intermittent renewable energy sources replace gas.

During the trial, 18 homes battling with bills received battery installations, which stored power during periods when electricity was inexpensive due to reduced demand.

Residents could then tap into that stored battery power whenever required.

This arrangement, coupled with a tariff that incentivised people for consuming electricity during off-peak periods, delivered savings of £255 per year on average, climbing to £415 for larger families, the research discovered.

'Significant impact on energy costs'.

"It has actually made a significant impact on my energy costs, and I'm now reassured and very grateful to be part of the scheme," one participant said.

The batteries would also assistin distributing power demand throughout the day, preventing peak-time pressure during teatime hours - something the National Grid struggles to manage without gas power, which can be adjusted up and down to satisfy demand.

E.ON, which provides the battery installations, is keen for the programme to expand nationwide.

The company commissioned a An analysis revealed that £600m of government investment could save 250,000 vulnerable households a combined £753m annually.

As part of The Home Age report, E.ON Next worked with Development Economics to calculate the benefits of a nationwide programme to rollout batteries and ToU tariffs. Based on the savings from the Coventry pilot, it estimates:

• If every household in the UK in fuel poverty received the upgrades, bills for these people would fall by £753m** a year, cumulatively
• Batteries and ToU tariffs in every UK home, excluding flats, would see total energy bill savings of approximately £5.45bn a year, and the nation's energy use drop by 3,174 GWh per year (roughly equivalent to the annual power consumption of all homes in Greater London combined)
• For each £1m saved through energy cost reductions across the country, the nation's finances would benefit from an estimated £186,000 in Gross Value Added (GVA) and nine new jobs would be created

With the government facing financial constraints, it remains unclear where this funding could be sourced.

Nevertheless, E.ON argued the investment would provide a swift route for ministers to deliver on their election pledge.

An E.ON spokesperson stated: "Government has pledged a £300 reduction in energy bills by 2030... as just one example, combining batteries and time of use tariffs for the most vulnerable UK households could provide tangible financial savings averaging £255 per home, but keep benefiting residents for decades."

Yet Liam Hardy, from the thinktank Green Alliance, suggested it might be "better value for money to deploy large-scale batteries in the grid, rather than in people's homes".

Individual home batteries cost approximately £7,000, though they possess the benefit of "being deployable very quickly, even tomorrow", he noted, and would generate even greater savings when paired with an electric heat pump.

Ramona Vlasiu, Chief Operating Officer for E.ON Next, commented: "The cost of energy in the UK is too high and as winter approaches, millions of households, especially the most vulnerable, will be anxious about their bills in the months to come.

"Financial support packages such as the Winter Fuel Payment have a role to play in tackling the issue, but we believe the way to solve it long-term is to put people at the heart of the energy transition. That means upgrading their homes with new technology, such as batteries, and putting them in control of the energy they use. Doing so will not only lower energy bills in the short term, but also create a national energy system with a long-lasting positive impact by reducing fuel poverty, creating jobs and boosting the economy."

Jess Ralston, from the thinktank Energy and Climate Intelligence Unit, described the government's forthcoming Warm Homes Plan as "an opportunity to lay out how it will incentivise those that can afford upgrades to invest, and how it plans to ensure that low-income households can access the benefits that net zero tech offer".

E.ON has also launched a new online portal designed to streamline and improve the process for those applying for free energy efficiency measures for their homes.

To find out more about The Home Age, visit: www.eonenergy.com/the-home-age

Building on E.ON's already established Grant Finder which recommends the most suitable funding solution for people, the new 'Green Funding Solutions Portal' is specifically designed for those potentially eligible for support through the government's two new schemes - the 'Warm Homes: Local Grant' and the 'Warm Homes: Social Housing Fund'.

Both these schemes are designed to retrofit energy efficiency improvements into people's homes, reducing fuel poverty and energy bills while helping the UK reach its carbon reduction goals. grants they may be eligible for.

Other benefits include people being able to upload any documentation required to verify their eligibility, and tracking all their appointments in one place - from application to technical survey to installation across multiple measures. And further enhancements to the portal are planned over the coming months.

Vijay Tank, Chief Commercial Officer, E.ON Infrastructure Solutions, said: "As part of our mission to make homes, business and entire communities across the country more sustainable, it's crucial we continue to explore and deliver new ways to make this process as easy and straightforward as we can.

"Our new Green Funding Solutions Portal is an excellent example of how we've combined our expertise, passion and innovative approach to deliver a digital solution that could help even more people access the support they're entitled to. This will make homes warmer, more comfortable and more sustainable, while also helping to lower energy bills and improve the nation's housing stock now and into the future."

To find out more, anyone can visit E.ON's Grant Finder at eonenergy.com/grant-finder to see what