Cutting High Energy Bills: How High-Usage Households Can Save with Solar Panels and Battery Storage

If you're a homeowner with high electricity usage—perhaps due to a large property, an all-electric heating system, or a growing family—you've likely felt the sting of soaring energy bills. The good news is that solar panels combined with battery storage can significantly reduce these costs. By generating your own electricity and optimizing its use, high-energy households can turn the tide on expensive bills while contributing to a greener future.

Understanding Why Some Households Have High Energy Bills

Common Reasons for High Electricity Consumption

1. All-Electric Homes: Properties without gas connections rely entirely on electricity for heating, hot water, and cooking.

2. Large Properties: Bigger homes require more energy for heating, cooling, and lighting.

3. Electric Heating Systems: Electric underfloor heating or storage heaters are less efficient than gas alternatives.

4. High-Usage Appliances: Frequent use of appliances like tumble dryers, electric ovens, and electric showers.

5. Home Offices: Increased energy use due to computers, monitors, and heating during the day.

6. Swimming Pools and Hot Tubs: Can add £1,000 to £1,500 annually to energy bills1.

Average Annual Electricity Consumption in the UK:

• Medium Usage Household: ~3,100 kWh per year

• High Usage Household: Over 7,100 kWh per year2

The Impact of High Energy Bills

With the average cost of electricity around £0.28 per kWh (as of 2023)3, high-usage households can face annual electricity bills exceeding £1,988 (7,100 kWh x £0.28). For some, this figure can be much higher depending on consumption patterns and energy tariffs.

How Solar Panels Can Help

Generating Your Own Electricity

Solar photovoltaic (PV) panels convert sunlight into electricity, allowing you to generate a portion—or even all—of your household's electricity needs.

Benefits:

• Reduced Energy Bills: Lower your reliance on grid electricity.

• Long-Term Savings: Solar panels have a lifespan of 25-30 years.

• Environmental Impact: Reduce your carbon footprint.

Potential Savings

• Annual Savings: Up to £600 per year for high-usage households4.

• Payback Period: Typically 8 to 12 years, faster for high-energy users.

Example Calculation:

• Annual Consumption: 7,100 kWh

• Solar Generation (4 kW System): ~3,400 kWh per year5

• Percentage of Consumption Covered: ~48%

• Annual Savings: 3,400 kWh x £0.28 = £952

Note: Actual savings depend on self-consumption rates and export tariffs.

Enhancing Savings with Battery Storage

Why Battery Storage Matters

Without a battery, excess solar energy generated during the day (when you're possibly not at home) is exported to the grid, often at lower rates than you pay for electricity. A battery allows you to store this excess energy for use when you need

it, such as during the evening.

Benefits:

• Maximize Self-Consumption: Use more of the electricity you generate.

• Energy Independence: Reduce reliance on grid electricity during peak times.

• Cost Savings: Avoid higher electricity rates during peak hours.

Potential Savings with Battery Storage

• Increased Solar Utilization: From ~50% to 80% or more6.

• Additional Annual Savings: Up to £300 per year7.

Example Calculation:

• Without Battery:

  • Self-Consumption: 50% of 3,400 kWh = 1,700 kWh

  • Annual Savings: 1,700 kWh x £0.28 = £476

• With Battery:

  • Self-Consumption: 80% of 3,400 kWh = 2,720 kWh

  • Annual Savings: 2,720 kWh x £0.28 = £762

• Additional Savings with Battery: £762 - £476 = £286

Financial Overview

Installation Costs

• Solar Panels (4 kW System): £5,000 - £7,0005

• Battery Storage (10 kWh): £4,000 - £6,0008

• Total Investment: £9,000 - £13,000

Payback Period

• Without Battery: 8 - 12 years

• With Battery: 10 - 15 years

High-energy users may experience faster payback periods due to greater savings.

Case Study: High-Energy Household Savings

Household Profile:

• Location: Southern England

• Annual Consumption: 10,000 kWh

• Electricity Rate: £0.28 per kWh

• Solar System: 6 kW (generates ~5,100 kWh/year)

• Battery Storage: 10 kWh capacity

Savings Calculation

1. Solar Generation: 5,100 kWh/year

2. Self-Consumption without Battery: 50% of 5,100 kWh = 2,550 kWh

3. Self-Consumption with Battery: 80% of 5,100 kWh = 4,080 kWh

4. Annual Savings without Battery: 2,550 kWh x £0.28 = £714

5. Annual Savings with Battery: 4,080 kWh x £0.28 = £1,142

6. Additional Savings with Battery: £428

Total Potential Annual Savings: £1,142

Time-of-Use Tariffs and Smart Energy Management

Leveraging Time-of-Use Tariffs

Some energy suppliers offer tariffs with variable rates throughout the day.

• Off-Peak Rates: Lower prices during periods of low demand.

• Peak Rates: Higher prices during high demand periods.

Using Battery Storage to Optimize Savings:

• Charge Battery During Off-Peak: If solar generation is insufficient, charge the battery overnight when rates are low.

• Use Stored Energy During Peak: Reduce or eliminate electricity usage from the grid during expensive peak times.

Example Tariff:

• Off-Peak Rate (11 PM - 6 AM): £0.10 per kWh

• Peak Rate (4 PM - 7 PM): £0.35 per kWh

Potential Savings:

• Avoiding Peak Rates: Using stored energy during peak times can save £0.25 per kWh.

Government Incentives and Support

Smart Export Guarantee (SEG)

• What is SEG? Energy suppliers pay you for excess electricity you export to the grid.

• Rates: Typically between £0.03 and £0.06 per kWh9.

Example Income:

• Excess Exported: 1,000 kWh/year

• SEG Payment at £0.05 per kWh: £50

VAT Reduction

• Zero VAT Rate: As of April 2022, VAT on energy-saving materials like solar panels and batteries has been reduced to 0%10.

Environmental Benefits

• Carbon Emissions Reduction: High-energy households can significantly reduce their carbon footprint.

• Supporting Renewable Energy: Contributing to a more sustainable energy grid.

Practical Steps to Implement Solar and Battery Solutions

1. Assess Your Energy Usage:

   • Review past electricity bills to understand consumption patterns.

2. Get Professional Advice:

   • Consult with certified solar installers for a tailored solution.

3. Obtain Multiple Quotes:

   • Compare offers to ensure competitive pricing.

4. Check for Planning Permissions:

   • Most residential solar installations are permitted developments, but verify with local authorities.

5. Monitor and Adjust:

   • Use energy monitoring systems to optimize usage and savings.

For high-energy households, investing in solar panels and battery storage offers a practical and financially beneficial solution to soaring electricity bills. By generating your own electricity and maximizing its use, you can significantly reduce your annual energy costs. Additionally, leveraging time-of-use tariffs and government incentives can further enhance savings.

References

• Energy Helpline - Swimming Pool Energy Costs ↩

• Ofgem - Typical Domestic Consumption Values ↩

• UK Power - Average Electricity Prices ↩

• Energy Saving Trust - Solar Panels for High Usage Homes ↩

• Solar Trade Association - Solar Energy Production ↩ ↩2

• Which? - Battery Storage Increase Self-Consumption ↩

• Solar Energy UK - Battery Storage Savings ↩

• GreenMatch - Battery Storage Costs ↩

• GOV.UK - Smart Export Guarantee ↩

• GOV.UK - VAT Relief on Energy-Saving Materials ↩