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The UK residential energy storage market has shifted from being mainly coupled with photovoltaic PV systems to a model where users seek to take advantage of time-of-use electricity prices.
Dave Roberts, UK managing director of GivEnergy, pointed out in an interview that traditionally people would buy photovoltaics first and then add batteries. But now, they will buy batteries first and then possibly add photovoltaics.
Roberts pointed out that not everyone has space to install rooftop photovoltaics, especially high-rise apartment residents of low-income families. However, everyone can take advantage of the time-of-use electricity prices introduced by more and more utility companies, charging during off-peak periods and using electricity during peak periods.
He claimed that this alone can pay back the investment within four to five years.
According to the Photovoltaic Power Portal last week, in March 2024, the number of household battery installations certified by the UK Microgeneration Certification Scheme (MCS) increased by 700% year-on-year, exceeding 1,000 in a month for the first time. Roberts reminded that this is mainly because MCS has only recently started statistics.
The government has exempted home batteries from VAT from 1 February 2024, a move that has boosted the adoption of energy storage, a technology that has “not been sufficiently high on the political agenda”.
He added that if GivEnergy’s own sales records are anything to go by, the VAT relief is spurring growth in the energy storage sector. Installers can now offer consumers more competitive pricing for projects. This in turn appears to be driving demand for energy storage solutions, driving technological advances and creating jobs within the industry.
GivEnergy is beginning to localise its supply chain, opening a factory in Stoke, central England last week that will assemble commercial and industrial systems, and later electric vehicle charging facilities.
Roberts also said there seems to be more willingness to support large foreign companies building gigafactories in the UK than to support smaller UK-based businesses. For example, India’s Tata Group and Japanese car group Nissan were reportedly recently awarded financial incentives to build gigafactories in the UK.
Roberts mentioned that the company is working with social housing providers to increase access to battery storage for low-income households. Home batteries are still a relatively large expense for most people. The All In One currently costs around £6,000 (about $7,500) on the market.
The company works with partners to offer 0% financing and leasing options for those who can’t afford the upfront payments.
Against the backdrop of falling global lithium-ion battery prices, Roberts was asked if those price drops would be passed on to consumers and said that as prices fall, that is indeed the case. He said that this trend is even more evident with photovoltaic panels and he hopes that this trend will continue.
